Washington DC Considers Legal Online Casinos and Sweepstakes Ban

Potential Introduction of Online Casinos in Washington DC

The District of Columbia is exploring the possibility of launching online casinos following a new legislative proposal introduced by Councilmember Wendel Felder. This draft bill, known as B26-0656, aims to update and reform the district’s online gambling regulations.

The initiative focuses on modernizing the gaming framework, enhancing protections for consumers, and reclaiming tax revenues currently lost to offshore and unauthorized gambling operators.

Having previously legalized mobile sports betting in 2019, Washington DC is now considering extending its gambling offerings by introducing online casinos linked to existing brick-and-mortar establishments.

Overview of the Proposed Online Casino Legislation

Washington DC has traditionally been cautious about iGaming legalization, but Felder’s proposal seeks to stimulate economic growth and increase state revenues by expanding gambling options.

The bill proposes that online casino operators pay a $2 million upfront licensing fee, renewable every five years at a cost of $500,000. Legal gambling participation would be restricted to individuals aged 21 and older.

Licenses could be held by current sports betting companies or new entrants. Suppliers would face lower fees, requiring a $50,000 licensing fee and $25,000 for renewals. The legislation also sets a 25% tax rate on adjusted gross revenue, applicable to the first $500,000 earned by each licensee.

Consumer protection is a key component, as the bill mandates that players can set daily, weekly, and monthly limits on their gambling activity, including spending and losses. It also includes session time limits, cooling-off periods, and regular reminders about the player’s net spending, wins, and losses to promote responsible gambling habits.

Ban on Sweepstakes Games and Strengthened Regulation

In addition to permitting online casinos, Felder’s bill aims to restrict sweepstakes-style games in the district. The legislation would grant the Office of Lottery and Gaming the authority to issue cease-and-desist orders to sweepstakes operators, effectively barring them from conducting business in Washington DC.

This move aligns with similar actions taken across the United States, where lawmakers are increasingly targeting sweepstakes operations to protect consumers and regulate the gambling market more strictly.