Washington D.C., Online Casino Bill Introduced, Sweepstakes Out
A bill to regulate online casino gaming has been introduced in Washington, D.C., in the latest attempt to regulate iGaming in the capital. Council member Wendel Felder has proposed a draft law to legalize and regulate online casino games.
The draft bill, B26-0656, also calls for an outright ban on sweepstakes casinos in D.C., following several U.S. states that enacted such bans in 2026.
At a Glance:
- Draft bill B26-0656 to regulate online casinos
- Sites would be partnered with land-based casinos
- The Office of Lottery and Gaming would oversee regulation
- Operators would pay a $2M license fee
- Sweepstakes casinos would be banned under legislation
Operators face $2M license fee in fight against offshore casinos
The Internet Gaming and Consumer Protection Act of 2026 also proposes a $2 million license fee for prospective online casino operators. A $500,000 renewal charge would come in after five years.
Additionally, online casinos would be regulated by the Office of Lottery and Gaming. Casinos would have to be tied to companies based in the nation's capital.
Washington already has legal sports betting (legalized in 2018) and a state lottery. However, the nearest brick-and-mortar casinos are found in nearby Maryland.
Sweepstakes casinos would face the axe under new law
Key to Felder’s case is the amount wagered on “illegal” gambling in D.C. each year. He estimated that residents in the District of Columbia gamble around $700 million offshore each year. That’s a lot of potential tax revenue the state misses out on.
The Internet Gaming and Consumer Protection Act of 2026 also seeks to ban sweepstakes casinos, currently under attack in several states. California banned sweepstakes casinos on New Year’s Day, with Illinois and Mississippi among those following suit.
Could Washington follow neighboring states in the push for legalized iGaming?
Washington lawmakers will closely study their neighboring state, Virginia, in the months ahead. Virginia has endured a topsy-turvy road to legalizing online casinos this year. Washington may end up waiting to see which way the cards fall in the Old Dominion.
In February, a proposed bill on online casino regulation passed in the House and the Senate. This month, SB 118 and HB 161 progressed following another revote and will allow the Virginia Lottery to regulate online casinos.
A key difference between Virginia and D.C., however, is that VA already has established brick-and-mortar casinos to run branded platforms.
A geo-fenced online casino industry may also struggle to get the numbers in a city with just 689,000 residents. However, those numbers are increased due to commuters from Maryland and Virginia.
