Let me add that I agree Larry, there are some states that have attempted to outlaw gambling over the internet. However, most states turn to the feds for help in trying to stop internet gambling. The reality is that neither states nor the feds have the resources to go after individual gamblers- it is not worth it. If they do go after anyone, it will be the owner-operators, but this creates a problem in that all sites are operated outside the US.

States have a very hard time regulating and prosecuting internet violations due to the expansive nature of the internet. A gambler can use an interstate commerce argument to avoid being prosecuted under state law and would instead be subject to federal laws.

EDIT: Just saw your response. Yes, Nevada passed a law that makes it illegal to place wagers on the internet. Not sure about the other states.