Washington, D.C. Councilmember Wendell Felder (D-Ward 7) has introduced legislation that would legalize iGaming in the district and prohibit dual-currency sweepstakes games.
B26-0656, or the Internet Gaming and Consumer Protection Act of 2026, would establish a regulatory framework for online casino-style games, including blackjack, poker, roulette, and slot-style games played on mobile devices and computers, the Sports Betting Dime reported. The bill comes after Washington, D.C. launched online sports betting in 2024.
Under the proposed legislation, iGaming would be regulated by the Office of Lottery and Gaming, with a minimum age of 21 for players. Operators would pay a 25% tax on gross iGaming revenue and a $2 million license fee. Licenses would be valid for five years, with operators able to apply for renewal for an additional five years by paying a $500,000 fee.
Felder said the legislation would bring iGaming activity already accessible to District residents under regulatory oversight. “iGaming, online casino-style games such as blackjack, poker, roulette, and slot-style games played on mobile devices or computers, is already accessible to District residents through unregulated and offshore platforms,” Felder wrote in the legislation text. “In the absence of a legal framework, these platforms operate without meaningful consumer safeguards, age verification, or regulatory oversight, creating risks for residents and limiting the District’s ability to respond.”
The bill would direct the first $500,000 in iGaming revenue to the Department of Behavioral Health for gambling addiction prevention, education, and recovery services.
The introduced legislation would direct additional funds to several District agencies. Thirty percent would go to the Department of Insurance, Securities, and Banking for debt management, financial counseling, consumer financial protection and financial literacy programs.
Another 30% would go to the Office of Victim Services and Justice Grants for domestic violence, intimate partner violence, survivor services and family stability programs. Ten percent would go to the Department of Health for research and evaluation services on gambling behavior and gambling addiction, while the remaining 30% would go to the Department of Employment Services for youth development and training programs related to artificial intelligence, gaming, coding and software development.
Felder said the market could generate tens of millions of dollars in annual tax revenue as it develops, in addition to upfront licensing fees. “Initial annual tax revenue could reach tens of millions of dollars, with growth expected as the market matures,” he said. “These funds could support critical priorities, including behavioral health services, responsible gaming programs, and broader community investments.”
The bill would also prohibit dual-currency gaming products, which it defines as a game, promotional scheme or platform that uses two or more forms of currency, credits, tokens, entries, points or similar units, where one or more units can be redeemed, converted, transferred or used directly or indirectly for cash, cash equivalents, prizes or prize equivalents.
The Office of Lottery and Gaming would be authorized to impose civil penalties of up to $100,000 per violation. If the same violation occurs multiple times, the maximum fine would increase to $500,000.
“Inaction carries real consequences,” said Felder. “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.”