This is not 100% accurate - the federal law does not prohibit online gambling, it prohibits banks and financial institutions in the US from processing funds from gambling sites. Individuals do not break any law by gambling at an online site.
While federal law prohibits banks from processing these funds, unless the bank has a policy addressing the issue, to my knowledge, the most they SHOULD do is bounce the check, in order to comply with the federal law. I know of nothing that would give them a right to do anything more (of course, a fee could apply to the bounce).
NOW -- all this said, it doesn't mean the government, and particularly an overzealous federal prosecutor, can't become a bully. I HAVE heard one second-hand report of an individual who deposited a check from PokerStars and had his checking account closed for about 10 days, in addition to reading the news articles about all these seizures. I don't think there's a legal basis for this; if there were, I can't imagine how or why his account would have been re-opened.
And of course, if the bank IS processing "illegal" checks, THE BANK is certainly subject to federal penalties, although it's not my concern what those might be. Unlike some illegal activities, there's not a law that I know of that penalizes you for "frequenting" a bank that breaks the law 
And the concern over whether the online casino is "honest" and is presenting a "fair" game is not without merit -- there HAVE been problems, at the least with cheating on some major poker sites. But there have been problems with casinos skimming money in the past, and if a casino goes bankrupt while you're holding its chips, you might be first in line over other creditors (or might not, who knows), but you can only get paid from what's there.
One article said the money was being seized because it represented "money laundering". Since I report all my gambling wins and losses, I don't see that I'm laundering anything, either to avoid taxes, or to put illegally obtained money into a legal enterprise (which is what I always thought money laundering was about).
I've decided to stick my neck out on this (but only a little) and took $100 out of my PokerStars account, and cashed (not deposited) the check at my bank earlier this week. It is NOT a NY bank, which may make a big difference. I figure if I haven't had any trouble in a couple of weeks, the stories are over-rated, even if there's an element of truth to them.
If, on the other hand, I have some problems, you'll hear it first here (after my poker buddies get the word)
Personally I am inclined to either sue or threaten to sue the bank, if any of my checking accounts are closed because I cashed a check from another bank that is used by an online casino, and demand that they compensate me for ANY inconvenience or costs I incur. I know no legal basis for the bank closing my account, unless they have a bank policy on this matter. Of course, if the feds seize my account, it's harder to sue them, but my congressman and senators will hear about it, and had better support the law as they wrote it, not as they might have liked it to have read.
In spite of all this, I too prefer live casinos to online gambling, and if that is a reasonable option for an individual, I too would recommend that -- although I think we've seen a couple of reports of "barred" gamblers for whom the casino would not allow them to cash their chips -- again, finally resolved "favorably" but not without hassle.
Even so, sometimes at 10pm or later, with the nearest casino an hour away, and already out of my clothes, but unable to get to sleep, the online casino does become a first choice on such occasions for a little pre-sleep recreation. For 99% of us, it is not a first choice for regular gambling, for a variety of reasons, perhaps the least of which is concern about being paid if you win.
Nothing is without risk when you let the money out of your hands and exchange it for something of questionable value, such as a casino chip, a slot printout ticket, or a "balance" in some account, whether that account is a casino account, a bank account, or an investment account. Some would probably remind us that even cash is something of questionable value, no longer backed by anything but the government's good word, which is, in most people's opinions, at least a little less good than it was in the past.
--BG
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5b. Re: Online casinos legit??
Posted by: "NC Wanderer" larbo929@yahoo.com larbo929
Date: Thu Jul 16, 2009 6:09 am ((PDT))The US government considers online gambling to be illegal. They recently seized
millions of dollars from banks used to process payments to online poker players.
http://news.yahoo.com/s/ap/20090713/ap_on_go_ot/us_online_poker_2
Even if the odds are good, if you factor in a chance that the Feds will take the
winnings, I will put up with the travel, crowds(?), noise and smoke.