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Washington, D.C. could legalize online casino gaming while shutting down dual currency sweepstakes under a bill now before the D.C. Council.
Councilmember Wendell Felder introduced B26-0656, the Internet Gaming and Consumer Protection Act of 2026, on April 9. The proposal would put online slots, blackjack, roulette and poker under the Office of Lottery and Gaming.
Good to Know
- Online casino operators would pay a 25% tax on gaming revenue.
- A five year iGaming licence would cost $2 million, followed by a $500,000 renewal fee.
- Dual currency sweepstakes casino games would face an outright prohibition.
DC Bill Links iGaming With Sweepstakes Ban
Felder is pitching regulated iGaming as an alternative to offshore casino play already available to Washington residents.
“iGaming, online casino-style games such as blackjack, poker, roulette, and slot-style games played on mobile devices or computers, is already accessible to District residents through unregulated and offshore platforms,” Felder wrote. “In the absence of a legal framework, these platforms operate without meaningful consumer safeguards, age verification, or regulatory oversight, creating risks for residents and limiting the District’s ability to respond.”
Players would need to be at least 21. The Office of Lottery and Gaming, which already oversees sports wagering, would handle licensing, compliance and enforcement.
Washington expanded districtwide mobile sports betting in 2024, with FanDuel, BetMGM and Caesars among the operators that entered the broader market.
B26-0656 would take a different approach to sweepstakes casinos. Any game or promotional platform using multiple currencies or credits, where at least one can ultimately produce cash or prizes, could fall under the proposed prohibition.
Violations could bring civil penalties of up to $100,000. Repeated violations could increase the maximum penalty to $500,000.
The approach follows a wider US trend. Several states have enacted or considered laws targeting dual currency sweepstakes gaming during 2025 and 2026, while D.C. is unusual in pairing such a ban directly with a proposal for regulated real money iGaming.
Gambling Revenue Would Fund District Programs
Felder expects a regulated D.C. online casino market could eventually generate tens of millions of dollars in annual tax revenue.
“Initial annual tax revenue could reach tens of millions of dollars, with growth expected as the market matures,” he said. “These funds could support critical priorities, including behavioral health services, responsible gaming programs, and broader community investments.”
The bill directs gambling revenue toward behavioral health, financial education, victim services, public health research and youth employment programs.
The first $500,000 would go toward gambling addiction prevention, education and recovery services. Other allocations would divide revenue between the Department of Insurance, Securities, and Banking, the Office of Victim Services and Justice Grants, the Department of Health and the Department of Employment Services.
A later FY2027 budget measure created an Internet Gaming Revenue Fund tied to B26-0656 and increased the proposed first allocation for gambling related behavioral health programs to $750,000.
The Committee on Human Services held a public hearing on the iGaming bill on May 4, including testimony from Office of Lottery and Gaming Executive Director Thomas R. Burnside.
Felder said: “Inaction carries real consequences. Without a legal framework, revenue continues to flow to unregulated operators, consumers remain exposed to risk, and the District falls behind neighboring jurisdictions that are moving forward.”
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