Using the logos of the sports organisations is probably infringing copyright.
Whether or not the gambling bit is legal would depend on where the company is based, but then again it's Zynga's love child, you wouldn't expect everything to be above board would you?
Yeah, I got a bad feeling when I saw that this company would purposely associate themselves with Zynga. Something does feel quite off. I have no comment on the legality, but I get the feeling a whole new demographic is going to be sucked into "clicking cows" or betting against their friends and spamming their walls. To top it off, you can only log in with Facebook ATM.
And it's possible this is not infringement. But it could still land them with C&D letters or answering a court filing.
The legality of gambling is dependent where their users are located. If it's illegal to gamble in Virginia, then users of the site in Virginia get into trouble for gambling or Virginia tries to get the site closed down (or maybe blocked by ISPs in VA.) But since they're using fake currency and not paying out in real USD, they'll probably be just fine.
Whether or not the gambling bit is legal would depend on where the company is based, but then again it's Zynga's love child, you wouldn't expect everything to be above board would you?