chad millman: you call your bookie. you go online. a lot, there's a lot of internet sites where you can make a bet. >> reporter: off-shore betting sites like this one, called bovada, are a huge hub for betting on sports. it's illegal for americans to use these sites, but they do. authorities have cracked down on these transactions recently, but they still continue. notice the website's address, it's bovada.lv, you might think that stands for "las vegas?" no, it's latvia. because it's a black market, it's hard to know exactly how much money gets wagered illegally, but the federal government estimated it ranges from $80 to $300 billion, that's billion with a "b," every year. >> reporter: so that's a lot of money. >> it's a lot of money that's not being taxed. a lot of money that is going under the table. >> reporter: these days, it's not just the commissioner of the nba who says this situation needs to change. there are a lot of cash-strapped states that want in on that action, too. the resort town of atlantic city is in dire economic s