Wow it's amazing how off topic these threads can get.
The question was is it illegal. Answer: Yes.
Is it LIKELY you'll be prosecuted? Ehh, I guess it depends. PROBABLY not, unless you really piss someone off, or an employee of a gaming company happens to walk into your establishment, or an employee of a local gaming distributor who's been trying to get your business , etc.
It's like downloading music online. Is it illegal? YES. Are you going to be prosecuted? PROBABLY not, but it can and does happen, although it's not that common.
You have your answer, it's illegal. If you choose to break the law and get caught, it's your own a**. And.. it's a pretty stupid thing to get fined or go to jail for.