That's an interesting development. I was just reading in the current Forbes magazine about Steve Wynn changing his views about online poker. (He was opposed, but now thinks it should be allowed & regulated in the U.S.). He even mentions a conversation with Harry Reid about this subject. And today, Forbes has an online story about the Federal indictment.

The difference between legal & illegal online poker in the US, in my opinion: Regulation and TAXES.
A federal level "sin tax" on online gaming would be a new, relatively painless, revenue source for these times of big deficits, and the industry would even go for it, but it would be tough to pass, IMO.

The articles are here:

http://blogs.forbes.com/nathanvardi/2011/04/07/how-casino-mogul-steve-wynn-went-all-in-on-online-poker-and-pokerstars/
http://blogs.forbes.com/nathanvardi/2011/04/15/founders-of-worlds-biggest-online-poker-companies-indicted/