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Is gambling illegal in America?

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I live in Australia where you can simply walk down to your local TAB and place a bet on your favourite sports team (or even go online and do it) or simply walk down to the nearest pokies outlet and bet away.

However, I have recently heard that this is illegal in America and the only place where it is lawful to gamble is in Las Vegas-is this true?
Is it not even possible for Americans to bet online (legally)?
 
Sports gambling is illegal in the US except for parlays in Delaware (I think) and everything goes in Las Vegas. Offshore gambling is frowned upon as well. Doesn't make much sense does it? Missing out on a boat load of tax revenue. Welcome to GL and come to the Holligan's forum for some interesting information.