Your right. The only solution is change residence of your location to allowed State and then request the withdraw
Can you point to which Washington law disallows playing skilled games for money? As well as point to which law in those states that disallow playing skilled games for money. I tried searching but couldn't find anything.
The host could take some steps if they were inclined to do more in Washington State.
Provided "bitcoins" are determined to be "merchandise" and not "money"
There is a process for being authorized in Washington State to host "Amusement Games" provided it is hosted for some social good (the hoster has to have some charitable purpose):
The full law for Washington State is here:
http://www.wsgc.wa.gov/rules/rules_manual_1211.pdfThe relevant part is here:
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RCW 9.46.0201
"Amusement game."
"Amusement game," as used in this chapter, means a game played for entertainment in which:
(1) The contestant actively participates;
(2) The outcome depends in a material degree upon the skill of the contestant;
(3) Only merchandise prizes are awarded;
(4) The outcome is not in the control of the operator;
(5) The wagers are placed, the winners are determined, and a distribution of prizes or property is made in the presence of all persons placing wagers at such game; and
(6) Said game is conducted or operated by any agricultural fair, person, association, or organization in such manner and at such locations as may be authorized by rules and regulations adopted by the commission pursuant to this chapter as now or hereafter amended.
Cake walks as commonly known and fish ponds as commonly known shall be treated as amusement games for all purposes under this chapter.
[1987 c 4 § 2. Formerly RCW 9.46.020(1), part.]