Banned State

Say for instance I live in a recently banned state. Is there a way to play maybe on a out of state proxy server or something?

Legally you can not play from those states. You will also be violating the terms and agreements of the various sites. I would not recommend playing from a banned state.

I agree here with Zach, it is tough to work around it, and can lead to bigger issues. Best thing to do is sign any petition you see around, as they are starting to pop up on sites, and on Twitter. I know FanDuel just made a link to a petition right on their main page.