A few years back there were a lot of guys in Japan and Germany running kiosks that operated the exact same way. I know that the now-defunct operator Futurebet was finding business owners who would set up like 5 computers in the back of a business or cafes and having people give them cash in person and allowing them to play and cash out right there from online casino games. Most of the time they lost so it wasn’t a big deal but still money was coming in and out all the time. Usually these fail because of crooked operators who pocket the deposits.
I have seen people putting craps and blackjack tables in their homes and taking money but never an online ring in the US.