DC iGaming Bill: Online Casinos Legal, Sweepstakes Banned

What you need to know

• DC's proposed iGaming bill would legalize online casinos under the Office of Lottery and Gaming and ban sweepstakes casinos.
• Operators would pay a $2 million application fee and $500K annual renewal, with a 25% tax on adjusted gross revenue.
• Opponents argue state revenue projections are overstated and social costs too high, while neighboring Maryland and Virginia didn't pass iGaming in 2026.

DC online casino bill introduced: 25% tax, no license cap

DC Councilmember Wendell Felder introduced the Internet Gaming and Consumer Protection Act of 2026 on May 4. The bill proposes a full regulatory framework for online casinos operated by the DC Office of Lottery and Gaming (OLG), with no cap on licenses and each operator allowed two skins. Fees include a $2 million application fee and $500,000 annual renewal. The tax rate is 25% on adjusted gross revenue.

"This is not about encouraging gambling, but recognizing reality and responding responsibly.", Councilmember Wendell Felder

Existing DC sportsbooks, BetMGM, Caesars, DraftKings, Fanatics, and FanDuel, would receive an expedited license timeline. The bill also mandates responsible gambling tools: deposit limits, loss limits, session limits, cooling-off periods, self-exclusion, and third-party exclusion.

Sweepstakes casino ban included

The bill proposes a complete ban on sweepstakes casinos in DC. If enacted, operators like Stake.us, Zula Casino, or others would have to stop accepting DC players. This follows a national trend: sweepstakes regulation is under increasing scrutiny. The DC Council hearing is set for June.

Revenue vs social costs debate

The National Association Against iGaming (NAAiG) and Campaign for Fairer Gambling testified against the bill. Their main argument: projected revenue is overstated and social service costs will eat into any gains. The NAAiG cited figures showing problem gambling costs could offset up to 60% of tax revenue in similar markets.

Stop Predatory Gambling backed that claim in written testimony. Supporters, including the OLG, say regulated online casinos will push players from offshore sites into a taxed legal market.

DC's bill influences neighboring states

Maryland and Virginia considered but didn't pass online casino bills in 2026. DC's move could pressure them to revisit the issue to avoid cross-border player loss. If DC legalizes, Virginia's pre-existing sportsbooks may push for full iGaming.

What this means - for now

Nothing is final yet. The June hearing will likely last months of revisions. A final vote isn't expected before late 2026. DC players using sweepstakes casinos should watch for updates. A ban would affect access.

For CasinoRankr's rankings, the pending bill is a variable to track. We'll update ratings when licenses are issued or if games disappear from DC.## What this means for players

Current DC players at sweepstakes casinos could face service interruptions if the ban passes. Legal online casinos would emerge around 2027. Comparison shopping will be key: different operators may offer different games and bonuses. Watch payout speed, game variety, and community feedback after they launch.

"This is about consumer protection, not promotion.", Councilmember Wendell Felder

The ban on sweepstakes sites would remove mail-in entry models for DC residents. Responsible play tools, however, would be legally required for iGaming operators, which is an improvement over current sweepstakes standards. Per Bill 26-xxx introduced May 4, the DC Council hearing is scheduled for June.