There are a variety of legal jurisdictions in the world. In many of them, gambling in various forms is legal. In some jurisdictions, recreational or medical marijuana is legal. In some jurisdictions, people are allowed to do what they want with the money they have accumulated. Bitcoin exists, and is used on the internet, internationally.
Thats right, whether something is legal or illegal depends where you do such action. And Bitcoin is neutral in this regard, because you might indeeed gamble, buy drugs or guns with Bitcoin in a jurisdiction where it is completly legal. Obviously using Bitcoin for purchasing illegal things in particular jurisdiction is stupid, as there is good chance you get catched up by the authorities. So better is changing your location and citizenship if your not happy where you live because the laws are too restrictive, like did many poker players and moved their ass out of the states because the internet gambling is restricted there to protect interest of local gambling lobby.