Washington, D.C., lawmakers have opened a new front in the city’s gambling market with a bill that would legalize online casino gaming while shutting down sweepstakes-style operators that use dual-currency models. The measure, introduced on April 9 by Councilmember Wendell Felder, is scheduled for a hearing on April 21 and would put the Office of Lottery and Gaming in charge of licensing, enforcement, and consumer protections.
The proposal, titled the Internet Gaming and Consumer Protection Act of 2026, would allow real-money internet casino play in the District for games including slots, blackjack, roulette, poker, baccarat, craps, video poker, live-dealer games, and peer-to-peer offerings. Players would have to be at least 21, and operators would be required to verify age and location before accepting wagers. The bill also calls for technical controls tied to geolocation, identity checks, cybersecurity, and responsible gaming measures.
The financial terms are aggressive by regional standards. Operators would pay a non-refundable $2 million application fee, a $500,000 renewal fee every five years, and a 25% monthly tax on adjusted gross internet gaming revenue. The legislation would not cap the number of operator licenses, a structure that points to an open commercial market rather than a limited-license model. Tax revenue would be directed in part toward administration, problem gambling programs, and a community reinvestment fund.
The same bill would draw a hard line against sweepstakes gaming. Its language defines sweepstakes gaming broadly, covering casino-style, sports wagering-like, and lottery-like products in which players provide money or something of value for a chance to win cash or prize equivalents, including through dual-currency systems. That would put many sweepstakes casino platforms directly in the District’s enforcement crosshairs unless they obtained a license under the new framework.
The push comes as more states move to restrict or outlaw sweepstakes casinos while debating whether to expand regulated iGaming. In D.C., the bill builds on a gambling market that already includes sports wagering under local oversight. Felder’s introductory argument centers on residents already accessing offshore and unregulated casino products, with the legislation aiming to bring that activity under local regulation.
If the measure advances, the timeline would move quickly. The chief financial officer would have 90 days after the law takes effect to issue rules, 30 days to establish an application process, and up to 180 days to authorize launch unless more time is needed for regulatory readiness. That would position Washington as a potential new entrant in the U.S. iGaming market within months, while sweepstakes operators face the prospect of being legislated out of the District.
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