Ya I read it was illegal here...well except if you go to Macao...it is a bigger gambling place than Vegas and that's saying quite a bit.

But no one is going to tell me I can have a good old game of Texas hold'em Poker with my friends. It's a good way to earn taxi money!

I am not sure, but as far as I know, you are fine to be playing Texas Hold'Em or Omaha or whatever you like, as long as you are not taking a rake.

The fact that something is prohibited in China is fairly irrelevant these days. As long as you don't get caught, it's ok...

Gambling is illegal in the sense that organized gambling operations are illegal. Chinese gamble with each other all the time. Relatives get together every holiday and play Mahjong with each other for money. I regularly see old people gambling in the park. Now operating a Mahjong den or a poker game with a rake would not be a good idea. 

There are plenty of poker places in first  tier cities, while not gambling to get actual ¥, you can redeem winnings for iPhones! luggery bags etc...

A place I used to drink at (down the docks) had illegal card games.

It must have been big money because the police would do regular raids. It was funny to watch. Flashing blue lights coming down the road, a shout goes out and the table vanishes. By the time the Police piled out of the vans no body was to be seen.

In the end the gamblers moved around the corner and had a chain of lookout all the way down the road.  I think the Police gave up.