I read previous threads on other's spacing issues and I have the same issue, yet the css fix didn't help. I did add the 4 lines below to my style.css for the theme.
div.entry-content .gform_wrapper form div.gform_body ul.gform_fields input,
div.entry-content .gform_wrapper form div.gform_body ul.gform_fields select {
margin-bottom: 0
}
You can see the form here...
http://www.albuquerque-insurance.com/business-insurance/business-insurance-quote/
Appreciate any help.