Washington DC introduces iGaming bill with sweepstakes ban

Washington DC Councilmember Wendell Felder filed legislation on April 9 to legalise real-money online casino gaming in the District and ban dual-currency sweepstakes casino platforms, marking the latest US jurisdiction to combine iGaming expansion with sweepstakes enforcement in a single bill.

Council Bill 260656 — the Internet Gaming and Consumer Protection Act of 2026 — has been assigned to the Committee on Human Services for a hearing on April 21. Felder, who chairs the Subcommittee on Local Business Development, introduced the bill citing an estimated $700 million wagered by DC residents on unlicensed and offshore platforms in 2024.

Tax Structure and Licensing Framework

The bill sets iGaming operators at a 25% gross gaming revenue tax. Initial licensing fees are set at $2 million for a five-year term, with renewals at $500,000 per additional five years. Oversight would rest with the Office of Lottery and Gaming. The bill places no cap on the number of licences issued, though existing sports betting licensees would receive preferential consideration in the application process. The minimum age for participation is 21.

Under the proposed framework, 10% of iGaming tax revenue would be directed to the Department of Health.

If enacted, regulators would have 90 days to finalise rules, with a market launch possible within 180 days.

Sweepstakes Ban Provisions

The bill targets any "dual-currency gaming product" — the model used by sweepstakes platforms in which players accumulate virtual currency redeemable for cash prizes. The Office of Lottery and Gaming would have authority to issue cease-and-desist letters, pursue injunctive relief, and impose fines of up to $100,000 per violation or $500,000 for violations arising from the same transaction, occurrence, or pattern of practice against non-compliant operators.

“This bill reflects a practical, data-informed approach to strengthening consumer protections, modernising our gaming framework, and capturing revenue that is currently flowing outside of the district’s oversight,” Felder said in a letter to the DC Council.

The sweepstakes ban component of CB260656 follows a pattern seen in several 2026 state bills, where iGaming legalisation and sweepstakes prohibition are packaged together. Indiana Governor Mike Braun signed a sweepstakes ban into law in March, with the prohibition taking effect July 1. Maine followed, with Governor Janet Mills signing LD 2007. Should CB260656 pass, DC would become the third jurisdiction in 2026 to explicitly outlaw dual-currency sweepstakes platforms.

DC’s Existing Gambling Landscape

Washington DC legalised mobile sports betting in 2019. The market expanded to its current multi-operator structure through the Sports Wagering Amendment Act of 2024, which ended a prior single-operator model. Five licensed operators currently offer digital wagering in the District following the departure of Penn Entertainment-owned theScore Bet in late February 2026.

The push for online casino legalisation in DC comes as multiple other jurisdictions have fallen short in 2026. Virginia’s iGaming bill stalled and was pushed back to 2027. Massachusetts and Maryland both moved bills that did not clear their respective sessions. Maine remains the only state to have legalised iGaming in the 2026 cycle, though its market has yet to launch.

“These figures make clear that iGaming is not a new activity — it is already occurring. The policy question is whether the District will regulate it effectively or allow it to remain unregulated,” Felder wrote.

Unlike neighbouring Maryland and Virginia, DC operates as a federal district with an independent legal framework. Legislation passed or rejected in either state does not automatically apply within the District’s boundaries — a distinction the bill’s sponsors noted explicitly when addressing the dual-jurisdiction geography of the nation’s capital. For a broader view of how iGaming and sweepstakes regulation is developing across the country, see EpicWins’ 2026 US gambling legislation tracker.

The April 21 committee hearing will be the first formal test of whether CB260656 has sufficient council support to advance.

Source: DC Council of the District of Columbia