Washington state legislature recently passed SB 6613 - 2005-06 prohibiting internet gambling. As of June 7, 2006, if you are all-in online playing poker for money, you are a Class-C felon.
Interesting. The fiscal note says "The agency does not believe there will be any fiscal impact from the legislation..." The Washington-state sponsored lottery is, of course, exempt from this law. So is off-track betting apparently (at least till Oct 2007)
OBTW - Class C felony is punishable by up to 1 year in the big house and $10K fine. Not to mention losing your job and voting rights.
One of the reasons given for this (since it has no fiscal impact) is to prevent kids from playing poker online. Apparently someone in the legislature is under the impression that threat of a Class C felony rap will dissuade internet teens. As if...