Lawmakers in Washington D.C. are contemplating the legalization of online casinos through a new bill that aims to allow poker, slots, and table games while simultaneously prohibiting sweepstakes platforms.
The proposed legislation, introduced by Councilmember Wendell Felder, who chairs the Subcommittee on Local Business Development, is known as the Internet Gaming and Consumer Protection Act of 2026 (B26-0656). This bill was presented to the D.C. Council on April 9 and is currently undergoing the legislative process, with a public hearing scheduled for May 4 after being referred to the Committee on Human Services.
This legislation is designed to authorize and regulate online casino-style gambling within the district, explicitly banning unlicensed sweepstakes gaming.
According to the bill, D.C. residents are already participating in online gambling. In his introductory letter, Felder references estimates indicating that residents placed around $700 million in wagers on unlicensed platforms in 2024. This activity drains local economic resources without generating tax revenue or providing consumer protections and regulatory oversight.
The new bill aims to address this issue by incorporating “internet gaming” into the licensed gaming offerings in the capital. D.C. already oversees sports betting and operates a lottery, so Felder has crafted the bill to be consistent with these existing frameworks under the Office of Lottery and Gaming (OLG).
Entities that are approved would be required to pay $2 million for a five-year license, with a renewal fee of $500,000. This structure is intended to attract serious operators. Each license holder is limited to offering a maximum of two internet gaming brands, although the OLG has the authority to approve additional brands if deemed appropriate.
Operators would be subject to a 25% tax on adjusted gross gaming revenue each month, payable to the District’s Treasurer. Additionally, a 2% regulatory assessment for administrative expenses and a 2% community impact assessment would be imposed, leading to a total effective tax rate of 29%.
The establishment of a legal iGaming market in D.C. presents a valuable opportunity for established online casino operators. The bill includes provisions for expedited licensing reviews for companies already holding a sports betting operator license, giving an advantage to operators like FanDuel, DraftKings, and BetMGM, who are already active in the Washington market alongside Caesars, Fanatics, and theScore.
The legislation stipulates a minimum age of 21 for all online casino activities, which is stricter than the 18-year age limit for sports betting. Operators are required to verify both age and identity before accepting bets from new users. However, similar to online sports betting, iGaming would not be permitted on federal land, including the National Mall.
Operators must also provide a comprehensive range of responsible gambling tools, such as loss limits, session time limits, self-exclusion options, and cool-off periods. Default limits will be automatically applied to accounts, with customers able to adjust them only after acknowledging responsible gambling information.
Any suppliers involved in game content, geolocation services, payment processing, and random number generation must secure a supplier license, which comes with a $50,000 application fee. Furthermore, the bill mandates participation from Certified Business Enterprises (CBE), requiring operators to allocate at least 35% of their D.C.-related operating budget to local small businesses through contracts.
Additionally, the bill enforces a complete ban on sweepstakes gaming, a model that has gained popularity across the U.S. due to its operation in a legal gray area.