The gambler uses those chips as he would in any ordinary casino. On the screen is what you would see in almost any Virtual Casino Gaming Software that is sold in computer software stores - Only this time, the gambler is wagering for real money. All this takes place using software and a main server that monitors all the gambling activity. Thousands of people from all over the world can gamble at the same time at one internet sportsbook and casino location. The Wizard of Odds site provides an excellent introduction as to how online games work.
Most internet wagering software have limit on individual bets as well as limits on daily bets.
Furthermore, most online casino software is programmed to pay back a certain percentage of the money taken in. Most use Vegas Odds, or odds used in the State of Nevada for various casino games. So, the odds of one gambler winning big is low. Keep in mind this costs millions of US Dollars. Also necessary is a gaming license to run a casino, which requires approvals from governments.