DC Proposal Would Legalize Online Casinos, Ban Sweepstakes Sites

^{D.C. Councilmember Wendell Felder is pushing to legalize online casinos in the nation's capital while banning sweepstakes sites from competing in the new market. (Photo: courtesy of Georgetown University Prisons and Justice Initiative)}

A new proposal would legalize and license online casinos in Washington, D.C., while also banning sweepstakes sites from taking part in the regulated market.

The proposal, known as the Internet Gaming and Consumer Protection Act of 2026, was introduced by D.C. Councilmember Wendell Felder on April 9 and is expected to be discussed at a hearing of the Committee on Human Services on April 21.

Felder: iGaming Revenue Can Help with ‘Tough Decisions’

Under Felder’s proposal, the Office of Lottery and Gaming would set regulations for the iGaming industry. Operators would pay a $2 million licensing fee to begin operations and an additional $500,000 to renew their license every five years. 

Online casinos would be available only to players ages 21 and up who are located within D.C.’s physical boundaries. Authorized games in the bill include slots, blackjack, roulette, and poker.

The legislation would tax online casino revenue at 25% of gross gaming revenue, and all operators would be required to spend at least 35% of their operational budgets with businesses based in D.C. or face additional penalties. 

According to Felder, his bill would direct new revenue into the D.C. coffers while also giving residents a regulated alternative to offshore gambling sites.

“As the District’s economy continues to shift – and as we enter a more constrained budget season – we’re going to be faced with some very tough decisions. As a city, we must identify innovative ways to generate new revenue without placing additional burdens on residents,” Councilmember Felder said in a statement. 

Felder argued that unregulated iGaming is already happening in D.C, but the District is unable to benefit from it or protect its residents from harm. His bill would bring that activity into a transparent, regulated system while keeping taxes the same.

Legislation Bans Sweepstakes Casinos from Market

In addition, the bill outright bans sweepstakes sites that use the dual-currency system that is under fire across the United States. The language appears to prevent the prolonged fights seen in some other states, where sweepstakes casinos argue their model places them under sweepstakes law rather than gambling regulations.

If the D.C. Council passes the legislation, Congress will have the opportunity to review it. While the federal legislature doesn’t act on most city bills, those on more controversial topics, like gambling, can sometimes prompt a response from the federal government. Washington, D.C., is not a state and operates under a unique relationship with Congress, so it can potentially review and overturn certain bills.

But while there may be debate over legalizing iGaming in the nation’s capital, Felder says it’s a winning bet for D.C. residents.

“This is about governing responsibly,” Felder said in a statement. “We have an opportunity to get ahead of this, protect our residents, and make sure the benefits of this industry are felt right here in DC.”