Washington D.C. lawmakers are reviewing a proposal to legalize online casino gaming under regulation while banning sweepstakes-style platforms, following a lengthy public hearing marked by disagreement among stakeholders. The Council of the District of Columbia’s Committee on Human Services spent nearly three hours examining the Internet Gaming and Consumer Protection Act, or Bill 26-0656.
Councilmember Wendell Felder introduced the measure, which would permit online casino games such as blackjack, poker, roulette, and slot-style products for adults aged 21 and older physically located on eligible nonfederal land. It would also prohibit sweepstakes casinos by banning unlicensed platforms using dual-currency systems.
Committee Chair Matthew Frumin said online gambling is already taking place outside regulation, citing estimates that District residents wagered close to $700 million on offshore platforms in 2024, while questioning how those figures were derived.
Felder said regulation reflects reality. “The question before us is not whether online gaming happens… The question is whether the district will continue allowing millions of dollars to flow outside of our oversight and outside of our economy or whether we will regulate it responsibly, protect consumers, and generate revenue that benefits district residents,” he said.
Tax and Licensing Framework Outlined
The proposal sets a 25% tax on adjusted gross gaming revenue, along with a 2% regulatory fee and a 2% community contribution. The first $500,000 in revenue would fund the Department of Behavioral Health, with additional allocations directed to health and other programs.
Licenses would cost $2 million to apply for, run for five years, and renew at $500,000. The bill does not cap operator numbers, creating an open-market structure. Major sportsbook operators including DraftKings, FanDuel, BetMGM, Caesars, Fanatics, and theScore Bet are expected to evaluate entry.
The Office of Lottery and Gaming would oversee regulation, with officials indicating readiness to administer the system.
Competing Views on Consumer Impact
Operators supported the bill, arguing regulation would shift users away from offshore platforms and add safeguards such as deposit limits, self-exclusion tools, and identity checks.
“Mobile sports wagering has shown what a well-regulated competitive market can deliver in the district,” said Caesars Entertainment Vice President Ricardo Cornneo Rivas. “Tax revenue is flowing to the general fund. Residents have access to safe, secure platforms with robust, responsible gaming tools and licensed operators such as us are pushing illegal offshore sites to the sidelines. iGaming will build upon that proven foundation.”
BetMGM also backed the proposal, citing more than $65 million invested in the District’s gaming market.
Opposition groups warned of increased gambling harm. Les Bernal of Stop Predatory Gambling said, “This is like putting Dracula in charge of the blood bank.” Other advocates raised addiction concerns tied to 24-hour online access and rapid gameplay.
Sweepstakes operators argued their models differ from real-money gambling and warned users could move to unregulated offshore sites if banned.
Next Steps Remain Open
No vote followed the hearing, and the bill remains under committee review. Councilmembers indicated further deliberation is needed, with no set timeline for a final decision.
Source:
“DC Divided During Online Casino Gaming Hearing”, yahoo.com, May 4, 2026
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