Washington, D.C. Pushes for Online Casinos While Targeting Sweepstakes Gaming

Washington, D.C., could be moving closer to legal online casino gaming.

A new bill introduced by Councilmember Wendell Felder would allow regulated online slots, table games, and poker in the District, while also taking direct aim at sweepstakes casinos operating outside traditional gambling laws. Source text:

Filed as the Internet Gaming and Consumer Protection Act of 2026 (B26-0656), the proposal was introduced on April 9 and is already moving through the D.C. Council. A public hearing is scheduled for May 4.

The logic behind the bill is simple. D.C. residents are already gambling online, but much of that activity is happening on unlicensed platforms. In the bill’s introductory letter, Felder points to estimates showing that District players spent around $700 million on unregulated sites in 2024 alone. That means no local tax revenue, limited consumer safeguards, and no real oversight.

The proposal would add internet gaming to the District’s existing gambling framework and place it under the Office of Lottery and Gaming. Operators would need to pay $2 million for a five-year license, with a $500,000 renewal fee. Each license holder could run up to two internet gaming brands, unless regulators approve more.

The tax setup is also substantial. Operators would pay 25% of adjusted gross gaming revenue, plus a 2% regulatory assessment and a 2% community impact assessment, bringing the total effective rate to 29%.

Even though D.C. is a smaller market, it could still appeal to major operators. The bill gives existing sports betting license holders an expedited review process, which could give current players in the market a useful head start. That includes brands like FanDuel, DraftKings, BetMGM, Caesars, Fanatics, and theScore.

The bill would also set the minimum age for online casino play at 21 and require full identity and age verification before bets are accepted. Responsible gambling tools would be mandatory, including loss limits, cool-off periods, session limits, and self-exclusion options. As with sports betting, online casino play would still be restricted on federal land.

Suppliers would not be exempt either. Companies handling game content, geolocation, payments, or random number generation would need supplier licenses, each with a $50,000 application fee. On top of that, operators would need to direct at least 35% of their D.C.-related operating budget to Certified Business Enterprises through local contracts.

Just as important as the legalization piece is the bill’s stance on sweepstakes gaming.

The proposal would explicitly ban sweepstakes-style casino platforms, targeting the dual-currency model that has spread across the U.S. These platforms usually let users play with free Gold Coins, while Sweepstakes Coins can be redeemed for prizes, gift cards, or cash. Operators often argue that this model falls outside standard gambling laws, but D.C.’s bill takes a much more direct approach.

The legislation defines sweepstakes gaming broadly and treats unlicensed operators as civil violators. Each day of non-compliance could count as a separate offense. Regulators would be able to issue cease-and-desist orders, while the D.C. Attorney General’s Office could pursue court action and seek disgorgement of profits.

If the bill passes as written, sweepstakes operators would either need to leave the market or move into the standard licensed iGaming model, which is likely too expensive for many of them. That makes this one of the more aggressive anti-sweepstakes proposals currently on the table.

There is still a long way to go before any of this becomes law. The bill must pass the Council, be signed by Mayor Muriel Bowser, and then go through Congress’s 60-day review period. After that, the Office of Lottery and Gaming would still need to issue rules and prepare the market for launch.

Still, the direction is clear. Washington, D.C., is not only looking at legal online casinos, but also signaling that it wants far less room for sweepstakes operators to keep working in the gray zone.