Washington D.C. Moves to Legalize Online Casinos and Ban Sweepstakes Gaming
Washington, D.C., could soon see a major shift in its gambling landscape, as a lawmaker has introduced the Internet Gaming and Consumer Protection Act of 2026 (B26-0656) to legalise and regulate online casino gaming in the district. The bill would bring popular games like blackjack, poker, roulette, and slots under a formal regulatory framework, while cracking down on sweepstakes casinos that have long exploited legal loopholes.
The bill was introduced by Wendell Felder, Chairperson of the Subcommittee on Local Business Development. It has been assigned to the Committee on Human Services, with a public hearing scheduled next month.
Legalisation of online casino gaming
The proposed legislation in Washington, D.C. would legalise online casino-style gaming, including slots, poker, blackjack, and roulette. Right now, many residents are already playing these games through offshore platforms that operate in the shadows, with no oversight or accountability. Legalisation would change that, putting formal rules in place to protect players and ensure operators are held to a clear standard.
The bill doesn’t open the door to everyone. It takes a firm stance against sweepstakes gaming, explicitly banning dual-currency and subscription-based models that have long skirted the rules. The message is clear: comply with the regulations or shut down.
The bill imposes stringent requirements on operators. A five-year licence would cost $2 million, and there would be a $500,000 renewal fee. Players must be at least 21 years old. These conditions are deliberately designed to keep the market in the hands of serious, established operators and to ensure that when this industry grows, it does so responsibly.
The proposed tax rate is 25 per cent of gross gaming revenue. Funds collected would be directed towards public services, including behavioural health programmes and responsible gaming initiatives. Projections suggest the regulated market could generate revenue once fully operational.
Consumer protection and regulatory framework
The Office of Lottery and Gaming (OLG) would oversee the iGaming sector in Washington, D.C. Ensuring regulatory compliance and upholding transparency among all licensed operators are among its duties. Consistency and ease of enforcement are the goals of centralising monitoring under a single body.
Players must be at least 21 years old to participate. Operators would be required to implement strict identity verification and geolocation systems to prevent underage gambling and ensure activity remains within legal boundaries.
According to Felder, Washington, D.C. citizens wagered around $700 million on unregulated online sites in 2024. These activities operated outside of consumer protection systems and produced no municipal tax revenue. In addition to funding public services like behavioural health programmes and measures for responsible gaming, the suggested framework will produce tax money.
Comparison with other US states
Despite having land borders with Virginia and Maryland, Washington, D.C. has its own judicial system. The District is a federal jurisdiction with the power to establish and implement its own laws, therefore laws established in Virginia or Maryland do not automatically apply to it. Maryland’s House Bill 1226, which seeks to ban sweepstakes casinos, is still moving through the legislative process. Even if it passes, the measure would not affect Washington, D.C., where residents would continue to have access to Sweeps Coin games.
So far in 2026, Indiana and Maine have enacted bans on sweepstakes casinos. Oklahoma is close to passing similar legislation. The failure of initiatives in Florida, Mississippi, Virginia, Hawaii, and Massachusetts highlights the uneven advancement of regulation nationwide.
Driven by technical advancements and the possibility of new revenue streams, more US states are thinking about regulating online gambling. If passed, the legislation could serve as a precedent for other states and territories, shaping how online casino gaming is regulated nationwide.
