Lawmakers considering bill to legalize online casinos in Washington, DC

Lawmakers in Washington, D.C., have been presented with a piece of legislation that would legalize online casinos in the nation's capital. As introduced by Councilmember Wendell Felder, Council Bill 260656 would not only authorize regulated real money online casino apps but also ban unlicensed gaming operators that use a dual-currency system, commonly known as sweepstakes casinos.

Calling it the "Internet Gaming and Consumer Protection Act of 2026," Felder called Council Bill 260656 the proposal "a practical, data-informed approach to strengthening consumer protections" while also modernizing the area's regulated gaming framework. On top of that, legal real money online casino apps in Washington, D.C., would keep revenue that is flowing outside of the District's oversight within its jurisdiction.

Felder added that District residents already have access to offshore sites that offer casino-style gaming, but without a legal framework, there is no guarantee or assurance of "meaningful consumer safeguards" such as age verification and security measures to protect users' personal and financial information.

In his proposal, Felder provided an estimate that Washington, D.C., residents wagered around $700 million on unlicensed platforms in 2024, leading him to believe that the potential fiscal impact of legal casino games online is "meaningful." In fact, initial annual tax revenue generated by new online casinos could reach tens of millions of dollars that could be used to support behavioral health services, responsible gaming programs and "broader community investments."

Felder warned that inaction to regulate online casinos "carries real consequences," including consumers remaining exposed to risk while the District falls behind neighboring jurisdictions that are moving forward with potential legalization. That includes Virginia, which looks to resume conversations on legal iGaming in 2027.

As written, the bill tasks the Office of Lottery and Gaming (OLG) with regulating licensed online casinos, which would be available for users who are at least 21 years old and otherwise eligible to play casino games online.

There is not an established maximum number of licenses that would be available, though any interested entity would need to pay $2 million as an application fee. Licenses would have a five-year shelf life, with renewal fees reaching $500,000 thereafter. Licensees would pay a 25% tax on adjusted gaming revenue.

In addition to green-lighting iGaming – and potentially make the District the first jurisdiction to do so following the legalization of Maine online casinos earlier this year – Felder's bill would also ban online gaming operators that use dual-currency systems of payment. This has long been common language for legislators looking to prohibit online sweepstakes casinos, which typically use Sweeps and Gold Coins.

The measure authorizes the OLG to issue cease-and-desist orders to unlicensed operators offering online sweepstakes casinos in the District while laying out punishments for violations of the bill. Those include a $100,000 fine for each violation and multiple indiscretions resulting in a $500,000 fine.

Grant Lucas