Washington DC Wants to Bring Online Casinos, Ban Sweepstakes
Summary
Councilmember Wendel Felder has proposed draft law B26-0656 to revamp Washington, D.C.’s iGaming rules. The bill would allow regulated online casinos linked to land-based properties, introduce upfront licence fees and renewal costs, set a minimum gambling age of 21, and impose a tax on adjusted gross revenue. It also contains detailed consumer-protection measures — mandatory deposit/spend limits, session and time limits, cooling-off periods, and real-time reminders about wins and losses. Crucially, the bill aims to empower the Office of Lottery and Gaming to issue cease-and-desist notices to sweepstakes operators, effectively pushing that sector out of the district.
Key Points
- Draft bill B26-0656 proposes legalising online casinos in Washington, D.C., tethered to existing land-based operators.
- Applicants would pay a $2 million upfront licence fee, with a $500,000 renewal every five years; suppliers face lower fees.
- The legal gambling age for online casinos would be set at 21.
- Adjusted gross revenue would be taxed at 25% for the first $500,000 collected by each licence-holder.
- Mandatory consumer-protection tools include daily/weekly/monthly limits, spending and loss caps, session/time limits, cooling-off periods and real-time spend/win/loss reminders.
- The Office of Lottery and Gaming would gain authority to issue cease-and-desist letters to sweepstakes operators, tightening enforcement against that sector.
Context and relevance
This move sits within a broader US trend of states and districts formalising iGaming while cracking down on unregulated ‘sweepstakes’ social casinos. If passed, D.C.’s proposal would redirect revenue from offshore and unlicensed operators back into the district coffers and set tougher consumer-protection expectations for online play. Operators, suppliers and regulators should watch closely: the bill blends commercial opportunity with stricter oversight.
Author style
Punchy: this isn’t just another policy note — it’s a potential market reshaper for operators, suppliers and regulators. The financial and regulatory terms (big up-front fees, a 25% tax bracket, plus strong protections) mean details will matter to anyone with skin in the iGaming game.
Why should I read this?
Short and blunt: if you work in gambling, payments, compliance or city policy, this could change who can operate in D.C. and how profitable it is. It also signals another regulatory nail in the coffin for sweepstakes-style social casinos — so if you’re involved there, pay attention now.