The Washington D.C. Council has officially introduced Bill 26-0656, a comprehensive legislative package aimed at modernising the District’s gambling landscape. The “Internet Gaming and Consumer Protection Act of 2026” proposes a dual strategy: establishing a regulated, tax-paying online casino (iGaming) market while simultaneously implementing a total ban on sweepstakes-based gambling operations.
The bill, introduced by Councilmember Wendell Felder, represents a proactive attempt to bring unregulated digital gaming under the strict oversight of the Office of Lottery and Gaming (OLG). By establishing a formal licensing regime, the legislation seeks to protect consumers while ensuring the District captures vital tax revenue currently lost to the “shadow” market.
Bridging the Revenue Gap: Launching a Regulated District iGaming Market
Under the proposed legislation, the District would authorise the licensing of online slots, table games, and poker. The move is designed to recapture significant tax revenue currently flowing to offshore sites or neighbouring jurisdictions. Operators seeking to enter the market would be required to meet stringent criteria, including:
- Licensing Fees: Substantial initial and renewal fees to ensure only well-capitalised entities participate.
- Taxation: A proposed 25% tax rate on adjusted gross internet gaming revenue to fund local social programmes.
- Responsible Gaming: Mandatory contributions to a new “Responsible Gaming Fund” to support addiction prevention and treatment.
A Unified Regulatory Front: DC Aligns with National Sweepstakes Crackdown
A critical component of Bill 26-0656 is the explicit prohibition of sweepstakes casinos. These platforms have long utilised a “dual-currency” model to operate without a gambling licence in most US jurisdictions. The DC Council’s move to label these operations as illegal gambling marks a significant escalation in the regulatory battle against “grey market” operators.
This stance aligns DC with a growing list of jurisdictions taking a harder line on unlicensed digital models. For example, Maine sweepstakes casino ban, LD 2007, signed into law earlier this year, served as a clear indicator that state-level regulators are no longer willing to tolerate the sweepstakes loophole.
Similarly, the ban on sweepstakes and prediction markets in Minnesota has highlighted the risks these unregulated platforms pose to consumer protection and market integrity.
New Safeguards for Consumer Protection and Social Funding
By banning sweepstakes while legalising iGaming, DC aims to ensure that every digital wager is placed within a transparent framework. The bill mandates:
- Strict KYC Protocols: Rigorous “Know Your Customer” checks to prevent underage gambling.
- Financial Transparency: Real-time reporting of transactions to prevent money laundering.
- Local Reinvestment: Ensuring that gambling revenue supports District infrastructure and public services rather than leaving the jurisdiction via unregulated sweepstakes platforms.
The bill has been referred to the Committee on Human Services for further review. If enacted, it will signify one of the most significant shifts in DC’s gaming policy since the legalisation of sports wagering, positioning the District alongside established markets like New Jersey and Pennsylvania.