A system and method for interactive gaming among a plurality of players including a host computer system and a plurality of player terminals communicably coupled to the host computer system via a network. The plurality of player terminals are located at a plurality of licensed gaming locations. The plurality of player terminals are configured to engage the plurality of players in a common interactive game operated by the host computer system. The plurality of player terminals include means for dispensing player winnings from the player terminal. The plurality of player terminals include electronic measures for monitoring actions taken by one of the plurality of players to detect collusion among the players prior to generating a payout.