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Washington, DC, is tired of watching from the sidelines while its neighbors have all the fun.
A brand new proposal, Council Bill 260656 (known as the Internet Gaming and Consumer Protection Act of 2026), was just introduced by Councilmember Wendell Felder.
The idea is simple on paper. Legalize real money online casino gaming, bring it under the proper rules, and collect taxes from it. At the same time, make it clear that sweepstakes casinos, especially the ones using dual currency systems, are no longer welcome.
It is a bit like inviting VIP guests through the front door while quietly escorting others out the back.
The District is basically looking to join the big guys like New Jersey, West Virginia, and Michigan. If this bill passes, the Office of Lottery and Gaming would suddenly have a lot more on its plate, overseeing everything from online slots to virtual poker tables.
The new rules of the game
This isn’t just about making gambling legal; it is about making it profitable for the city. The proposal comes with some requirements for anyone wanting to set up shop in the District.
- The entry fee: Any operator wanting a license will need to bring a $2 million fee just to get started.
- The tax man: The city is looking to take a 25% cut of all adjusted gross gaming revenue. That money will go for causes like behavioral health services and gambling addiction programs.
In a letter to the council, the bill sponsor Felder said regulating iGaming is the only logical thing to do, since it’s already operating illegally. He cited that last year an estimated $700 million in bets were made on these black market platforms.
“This bill reflects a practical, data-informed approach to strengthening consumer protections, modernizing our gaming framework, and capturing revenue that is currently flowing outside of the district’s oversight.”
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…. Inaction carries real consequences. Without a legal framework, revenue continues to flow to unregulated operators, consumers remain exposed to risk, and the district falls behind neighboring jurisdictions that are moving forward.”
Besides the money talks, the bill is also paying attention to responsible gaming measures. Players would need to be at least 21 years old and pass strict identity and location checks to make sure they are actually within DC borders when they place a bet.
Sweepstakes casinos aren’t so lucky
Council Bill 260656 flips the middle finger to sweepstakes casinos.
The bill makes it very clear that those days of using dual currency systems are over. It seeks to officially ban these platforms unless they go through the full licensing process. If they don’t play by the new rules, the consequences are damning.
Violators could face civil fines of $100,000 per violation, and that number can jump to $500,000 for repeat offenders. The DC Attorney General would even have the power to sue these companies to get back any “illegal” profits they made from DC residents.
If things go smoothly at the hearing scheduled for April 21, we could see a final vote soon. Once that is out of the way, regulators would have about six months to get everything running. If you are a fan of social sweepstakes sites, you might want to enjoy them while you can.
