When I put ads for google on my graphic design site, clearly on the Terms and conditions of google, you cannot use their services on a gambling related site or did I mis interpret their T/C’s?
That is correct. I emailed Google last year. They replied, if you are in the USA you can’t use Adwords to advertise a gambling site. Then I RE’d “that I see Google ads for gambling sites” and they replied, they are not in the USA.
You can place Google Adsense ads on your site, which will target the sites’ content, even gambling sites.