New York – courts ruled in 1999 that internet gambling was illegal
New Jersey –http://www.state.nj.us/lps/ge/internet_gambling/law.htm
Michigan – http://michigan.gov/mgcb/0,1607,7-120-7863-19182–F,00.html
Remember, there are an additional sixteen states that do not permit any type of social gambling by their citizens… it’s only time before they update their laws to specifically address internet gambling.
as always, just my two cents