D.C. Bill Targets Regulated iGaming, Sweeps Casino Ban
Lawmakers in Washington, D.C., have introduced a new bill that would legalize online gaming in the capital while also banning online sweepstakes casinos.
Introduced on April 9 by Councilmember Wendell Felder, Council Bill 26-0656 (The Internet Gaming and Consumer Protection Act of 2026) aims to impose a 25% levy on operators and to eliminate the dual-currency system. This bill is being introduced following lawmakers' attempts to regulate existing online gambling activities.
This legislative proposal is comparable to similar efforts in other states, such as Virginia, Massachusetts, and Maryland, this year, although bills proposing the legalization of iGaming have failed to gain traction.
This bill seeks to create a legalized market and would require operators to pay a 25% gross gaming tax, along with a $2 million application fee for 5 years.
The regulation would be drafted by the Office of Lottery and Gaming with no cap on the number of licenses that may be issued. Preference will be given to the current holders of the DC sports betting licenses, while the minimum gambling age will be set at 21.
In this regard, the document cites evidence from similar markets indicating that the regulation helps move people off unlicensed sites, thereby improving transparency and accountability.
At the same time, the bill directly addresses the sweepstakes casino market by defining sweepstakes gambling. This is any mechanism by which money or another form of value is transferred to participate in a gambling event.
The definition covers dual-currency mechanisms, where virtual coins can be purchased alongside an alternative currency that is used to win prizes or cash out.
The measure has been assigned to the Committee on Human Services, and a hearing is scheduled for April 21.
Oklahoma moves parallel crackdown on sweepstakes models
The approach aligns with developments elsewhere, particularly in Oklahoma, where lawmakers continue advancing restrictions on sweepstakes casinos. Senate Bill 1589 cleared a House committee recently after already passing the Senate unanimously, signaling strong legislative support.
The Oklahoma measure redefines what qualifies as gambling. By expanding the definition of "representative of value," the bill brings virtual currencies tied to real-world rewards within the parameters of existing gambling laws. This change effectively classifies many sweepstakes platforms as illegal online casino operations.
The scope of the law extends beyond those who run the games. The law would cover not only the affiliates but also the geolocation, platform, and media companies that partner with them.
Such a broad scope suggests efforts to disrupt the entire system of sweepstakes gambling. This is seen in the punishments proposed by SB 1589. Violating the statute would result in Class C2 felonies, which can lead to hefty fines and even jail time.
