it could be. If it floods you may have a problem but its not constantly exposed to moisture so it should be fine. Sheet vinyl would be nother option.

When we redid our mudroom, kitchen, dining room, laundry room and bathroom (all adjoining) we went with chiseled edge, honed travertine in a modular pattern. It's made by Florida Tile and the color is called Picasso. I LOVE MY FLOORS. They hide everything and quite honestly don't require any attention. I have to remind myself to vacuum them or wash them because they never look dirty, even with pets. Here are a couple of photos.

I have laundry in the basement-- have a laundry chute direct to the laundry. I have never wanted a laundry on the second floor but have wished that I had it on the main floor sometimes. Advantage to basement--usually have a lot of room (I don't). We can get really dirty sometimes, with gardening and landscaping projects. Can shuck the dirties in the garage or back entryway and drop down the laundry chute there (or in a bucket in the garage)...vs having to deal with them upstairs (where we have carpet). I wash clothes once a week. Smelly dirty laundry is in the basement; not stinking up the bedrooms. I have a clothesline strung in the unfinished part of the basement for drying rugs, mattress pads, sheets, jeans, etc. during the winter/ rainy days. As well as drip dry items that don't go in the dryer. The clothes line is also handy for hanging wet or damp dirty items to dry (like bath towels & kitchen towels) before they go into the dirty clothes hamper. I fold & sort items as I unload the dryer. Towel stack to the linen closet, DS's clothes in one stack, etc. Usually cart the basket to the main floor and someone else will haul it on upstairs. Have had three laundries that were in enclosed back porches and one just adjacent to the garage when I lived in the south. That arrangement worked really good and would be my preferred location for a laundry. Would not want W/D in a closet if it can be avoided. I use my laundry sink a lot as well as having the washer drain hose empty into the sink. (With a lint sock to keep lint and dog hair out of the sewer line--septic leach field if that's your situation.) You adapt to wherever the laundry is. Pros & cons to wherever it is. Main thing is that a home laundry beats the heck out of having to go to the laundromat! We've probably all had to do that at some time in our lives.

As Joe said no drain needed unless the laundry room is on the 2nd floor you will install the pan with it. The pipe can burst anywhere if a toilet overflows you not gonna start putting floor drains into the bathroom. Here is an example it happened to one of my customers, the nut on the toilet bowl cracked on the 2nd floor while they were away, flooded the entire house (2 floors +finished basement) 100k in damage. I can give you a few more horror stories when the metal dishwasher hose bursts on it's own without the appliance being in running mode. The moral of the story is and it's everyone should keep in mind that when going away to shut the main water valve off near the meter and never run dishwashers or washers when you going out and no one will be home. Most importantly check the water lines under the sinks from time to time, being in this business you come across base cabinets when people keep stuffing stuff under there and at times the lines get damaged or kinked, etc and it's only a matter of time before they burst. Good luck