I thought that only licensed dealers were allowed to sell guns at gun shows and that an instant background check could also be performed on site and was required. Am I wrong?
It depends on the state that has the gun show. Private sellers don't have to do a NICS check in states which have no requirement like Virginia. Federal Firearms Licensed dealers must do a NICS check.
Yep, you are wrong. If person-to-person sales are legal in your state, (as is generally the case) then they can be made at gun shows. And in those cases, not check is required. The BATF will NOT accept a phoned-in background check from anybody who is not an FFL anyway, though. You see, FFL’s surrender some of their natural rights in return for the “privledges” of their license.
All firearms dealers are licensed in the US. There is no such thing as an un-licensed dealer. It is commie pinko speak for private firearms sales. This is is nothing more that an attempt to register private sales.