Washington D.C. lawmakers are considering legalizing online casinos, with a new bill that could allow poker, slots, and table games, while banning sweepstakes platforms
Washington, D.C., could be the next U.S. jurisdiction to legalize iGaming. A lawmaker has introduced legislation that would not only bring online slots, table games, and poker, but also crack down on the sweepstakes model that has spread across the country in a legal gray zone.
Councilmember Wendell Felder, who serves as Chairperson of the Subcommittee on Local Business Development, introduced the Internet Gaming and Consumer Protection Act of 2026 (B26-0656) to the D.C. Council on April 9. The bill now moves through the legislative process, with officials scheduling a public hearing for May 4 after referring it to the Committee on Human Services.
Lawmakers designed the legislation to authorize and regulate online casino-style gambling in the District and explicitly outlaw unlicensed sweepstakes gaming.
The Online Casino Opportunity
The bill recognizes that D.C. residents already gamble online. In the introductory letter, Felder cites estimates showing that District residents wagered approximately $700 million on unlicensed platforms in 2024. That money leaves the local economy without generating any tax revenue, offering consumer protections, or receiving regulatory oversight.
The bill would change that by adding “internet gaming,” to the licensed gaming offerings in the nation’s capital. The district already regulates sports betting and operates a lottery, so, Felder designed the bill to align with those existing programs under the Office of Lottery and Gaming (OLG).
Approved entities would pay $2 million for a five-year license. The renewal fee stands at $500,000, so lawmakers structured the significant costs to attract serious operators. Each license holder can offer no more than two internet gaming brands, although the OLG can authorize additional brands at its discretion.
Operators would pay 25% of adjusted gross gaming revenue as tax every month to the District’s Treasurer. Regulators also impose a 2% regulatory assessment for administrative costs and a 2% community impact assessment. That results in a total effective tax rate of 29%.
What This Means for the Online Casino Industry
A legal iGaming market in D.C. would create a small but high-value opportunity for established online casino operators. The bill includes provisions that give companies with an existing sports betting operator license an expedited review to streamline the licensing process. That gives operators like FanDuel, DraftKings, and BetMGM a significant first-mover advantage. Those three are among the online sports betting operators available in Washington, along with Caesars, Fanatics, and theScore.
The legislation sets a minimum age of 21 for all online casino play, which makes it stricter than the 18-year-old limit for sports betting. Operators must verify both age and identity before accepting bets from new users. However, just like online sports betting, iGaming in Washington would not be available on federal land, such as the National Mall.
They must also offer a full range of responsible gambling tools, including loss limits, session time limits, self-exclusion, and cool-off periods. The system applies default limits automatically to accounts, while customers can adjust them only after acknowledging responsible gambling information.
Any suppliers of game content, geolocation services, payment processing, and random number generators must obtain a supplier license with a $50,000 application fee. The bill also includes a notable requirement for Certified Business Enterprise (CBE) participation. That means operators must ensure that at least 35% of their D.C.-related operating budget goes to local small businesses through contracts.
The Sweepstakes Casinos Crackdown
The bill introduces an outright prohibition on sweepstakes gaming. The model has become popular in the U.S. because it operates in a legal gray zone. These platforms use a dual-currency system, allowing players to earn coins for free and buy additional coin bundles.
Players use Gold Coins in free-to-play modes, while they can usually redeem Sweepstakes Coins for prizes like gift cards and cash. The platforms argue that because players can get sweepstakes entries for free, regulators should not classify it as illegal gambling. However, a growing number of states have passed or are considering legislation banning sweepstakes.
The D.C. bill directly targets this structure, defining “sweepstakes gaming” as any game, promotional contest, or scheme, whether in-person or online, in which a person can play casino-style games and win a prize, directly or indirectly.
The bill proposes that operators who run or market sweepstakes gaming without a license commit a civil violation, with regulators treating each day of non-compliance as a separate offense. The OLG can issue cease-and-desist orders, and the D.C. Attorney General’s Office can bring civil action seeking injunctive relief and disgorgement of profits.
If the bill passes as written, it would effectively ban sweepstakes platforms unless they transition to a standard iGaming operator license, which carries the $2 million application fee and 25% revenue tax. That model simply won’t work for many sweepstakes operators, which currently avoid license fees and gaming revenue taxes.
D.C.’s approach explicitly prohibits the dual-currency model and positions it as one of the most aggressive stances in the country today.
Where the Bill Goes From Here
The legislative timeline for B26-0656 has moved quickly since its introduction. Officials filed it at the Office of the Secretary on April 8, and the Committee on Human Services issued a Notice of Public Hearing just four days later. The committee formally referred the bill and scheduled a public hearing for May 4.
The bill still faces a long process. If the Council passes it and Mayor Muriel Bowser signs it, Congress must complete a 60-day review period before it can take effect. The OLG must then issue proposed rules within 90 days of the effective date and authorize the launch of internet gaming within 180 days. The mayor can certify that regulators need additional time for readiness.
D.C. offers an opportunity for online gaming operators and provides a preview of what a more aggressive regulatory approach toward sweepstakes gaming might look like at the state level.
If successful, Washington would join eight states that legalize online casino gaming. That includes Mid-Atlantic states Delaware, Pennsylvania, and West Virginia, all of which are short drives from the district. Maine is the newest state, with its law enacted earlier this year. However, it faces a legal challenge in federal court.
Efforts to pass iGaming legislation failed in neighboring Virginia earlier this year, and it appears similar measures in Maryland will fail, too.
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