As Greg said, many card rooms now have jackpots, although some had them for years, (California Grand in Pecheco I believe was one of the first to resume jackpots) even after the ban was in force. One must assume they are legal as they are prevelent in not only the small clubs, but the big ones as well.
The one big difference is that now the casino must fund the jackpots themselves and not take an extra "$1.00 drop" as they did when jackpots were originally introduced.
Even with the Casino funding the jackpots, it is a terrific money maker from them--second only to the Pai-Gow games.
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