Wendell Felder, a Councilmember from Washington, D.C., has put forth a new bill aimed at legalizing iGaming within the district while also banning dual-currency sweepstakes games. The legislative proposal, known as B26-0656 or the Internet Gaming and Consumer Protection Act of 2026, seeks to create a regulatory structure for online casino games, including popular options such as blackjack, poker, roulette, and slot games accessible via mobile devices and computers.
This initiative follows the launch of online sports betting in Washington, D.C. in 2024. If passed, the regulation of iGaming would fall under the Office of Lottery and Gaming, establishing a minimum age of 21 for participants. Operators would be required to pay a tax of 25% on their gross iGaming revenue alongside a substantial licensing fee of $2 million. Licenses would be valid for five years, with the possibility of a five-year renewal for an additional fee of $500,000.
Felder emphasized that the legislation aims to bring iGaming activities, which are currently available to residents through unregulated and offshore platforms, under proper regulatory oversight. He noted that without a legal framework, these platforms lack essential consumer protections, age verification, and regulatory scrutiny, posing risks to residents and hindering the district's ability to respond effectively.
The proposed bill would allocate the first $500,000 generated from iGaming revenue to the Department of Behavioral Health to support gambling addiction prevention, education, and recovery services. Additionally, 30% of the revenue would be directed to the Department of Insurance, Securities, and Banking for various financial programs, while another 30% would benefit the Office of Victim Services and Justice Grants, focusing on domestic violence and family stability initiatives.
Furthermore, 10% of the funds would go to the Department of Health for research on gambling behavior, and the remaining 30% would support the Department of Employment Services in youth development programs related to artificial intelligence and gaming.
Felder anticipates that the iGaming market could generate substantial tax revenue, potentially reaching tens of millions of dollars annually as it matures. He highlighted that these funds could be instrumental in supporting vital community services, responsible gaming initiatives, and behavioral health programs.
Moreover, the bill aims to prohibit dual-currency gaming products, which are defined as any game or promotional scheme that utilizes multiple forms of currency or points that can be redeemed for cash or prizes. The Office of Lottery and Gaming would have the authority to impose civil penalties of up to $100,000 for violations, with fines escalating to $500,000 for repeated offenses.
Felder warned that failing to act could have serious implications, stating, “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.”