Tried it. They don't pay out, this is where I found out about txtnation.com in the first place, had to talk to the support to refund what I paid for 0.01 BTC. Their support is pretty nice.
Apparently only in the UK is gambling using SMS/Phone bills is allowed. I found this though:
http://www.ladylucks.co.uk/You can pay with SMS, and withdraw to PayPal.
Not sure how you can get around it though, would a proxy help?
I found that too, it's not about IP, it's about the phone number I'm using. I looked into mfortune too.