I would think the term "illegal club" refers to a gambling club operating in an area where gambling clubs are illegal... and, I'm not too sure if the term "unlicensed club" fits well (here); especially if a club is operating in an area where gambling is not legal. After all... if gambling is illegal in Boonsville, how can a club operator be in violation of not applying for a license... (if no such licensing exists in Boonsville) ? I would think the operator of the club is simply in violation for operating an "illegal club" and not an "unlicensed club."

JB