Well from the looks of it, you have violated their TOS so that's ground for your account to be banned.
But the thing is that you have money there so their is the issue. I doubt though that you can get your money back for the simply fact, as I have said previously, there is a violation on your part. So sorry to burst the bubble for you, but chances are slim that you will get your $1,200.
Exactly.
Even though OP has friends in other countries where it is legal, I doubt that the gambling site he was talking about will let it slide. Gambling ToS once violated has a consequence, and even though your money is in their, I bet they will just simply tell OP about what he did and he will never get the money out of their.
It was OP's fault clearly, because he already knew what's gonna happen once he get caught.