D.C. Bill Would Legalize Online Casinos, Ban Sweepstakes

Councilmember Wendell Felder filed the Internet Gaming and Consumer Protection Act of 2026 (B26-0656) with the D.C. Council on April 8 and formally introduced it on April 9. The bill would add internet gaming to the District’s licensed gambling options and place oversight with the Office of Lottery and Gaming (OLG). A public hearing is scheduled for May 4 before the Committee on Human Services.

Felder’s introductory materials cite an estimate that District residents wagered about $700 million on unlicensed online platforms in 2024. The legislation would license operators, collect taxes and create consumer protections for online slot, table game and poker play.

Under the proposal, a five-year operator license would carry a $2 million fee and a $500,000 renewal fee. Licensed operators would pay 25% monthly tax on adjusted gross gaming revenue, plus a 2% regulatory assessment and a 2% community impact assessment, an effective rate of 29%. Each licensee may offer up to two internet gaming brands unless OLG permits additional brands. Suppliers of game content, geolocation, payment processing or random number generation would need a supplier license with a $50,000 application fee.

The bill sets the minimum age for online casino play at 21 and requires identity and age verification before accepting wagers. Play would be barred on federal land, including the National Mall. Operators must offer responsible gambling tools such as preset loss limits, session time limits, self-exclusion and cooling-off periods. Default limits would apply to new accounts and customers could change limits only after acknowledging responsible gambling information.

The measure requires that at least 35% of a D.C.-related operating budget be spent with Certified Business Enterprises to direct a portion of operator contracts to local certified firms. It creates an expedited licensing path for entities that already hold D.C. sports betting operator licenses, allowing those firms to seek iGaming authorization more quickly. Firms currently operating sports books in D.C. include FanDuel, DraftKings, BetMGM, Caesars, Fanatics and theScore.

The bill defines sweepstakes gaming to include any game or promotional contest where a person plays casino-style games and can win a prize. It targets dual-currency sweepstakes platforms that grant free ‘‘Gold Coins’’ and sell redeemable ‘‘Sweepstakes Coins.’’ Running or marketing sweepstakes gaming without a license would be a civil violation, with each day of noncompliance treated as a separate offense. OLG could issue cease-and-desist orders and the D.C. attorney general could seek injunctive relief and disgorgement of profits. Operators could avoid the ban only by obtaining a full iGaming license and meeting fee and tax obligations.

If the Council passes the bill and the mayor signs it, Congress would have 60 days to review the law before it could take effect. After that, OLG would have 90 days to issue proposed rules and up to 180 days to authorize internet gaming, unless the mayor certifies additional time. If enacted, D.C. would join Delaware, Pennsylvania, West Virginia and Maine among jurisdictions that allow online casino gaming; Maine’s law is facing a federal legal challenge. Efforts to legalize iGaming in neighboring Virginia and Maryland did not succeed this year.