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Adding in the overreach of the national government definitely adds another level of complexity.
You sort of have to think of "legal"/"illegal" as being who will try to prosecute you for stuff. When stuff's "legal" in a state, it means the state police and courts won't prosecute you over it.
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Yep! I forget that a lot. Something I still don't quite get, it's not about betting but about smoking weed. A friend of mine got banned from entering the US for two years because he admitted to smoking weed in a state where it's legal. They applied federal law in his case, and it was at the airport. Isn't that weird?