A pivotal new bill has been introduced in the District of Columbia that seeks to officially regulate the online casino industry. The legislation would legalize iGaming in Washington DC while simultaneously prohibiting sweepstakes casinos, which currently operate through various legal loopholes.
The bill’s sponsor, Wendell Felder, Chairperson of the Subcommittee on Local Business Development, emphasized that the current unregulated state of the market is unsustainable.
Removing Risks through Formal Oversight
In his introductory remarks, Felder highlighted that District residents already access casino-style games through unregulated platforms.
“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. 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.”
If approved, Washington DC would become the ninth jurisdiction in the US to allow online casino games from the iGaming realm. The bill explicitly defines sweepstakes gaming as any promotional contest where a person provides “money, consideration, or something of value” for the chance to win prizes, including via dual-currency products.
Financial Framework and Tax Potential
The legislation offers operators already licensed for sports betting in DC the right to launch two branded online casino platforms. Key financial terms include:
- Licensing Fee: $2 million for a five-year license.
- Renewals: $500,000 for each five-year period.
- Tax Rate: A 25% tax on gross gaming revenue (GGR).
Felder claims this could generate tens of millions of dollars annually, with the first $500,000 in tax revenue earmarked specifically for problem gambling treatment. The remainder would cover the Office of Lottery and Gaming’s (OLG) costs, with surplus funds directed to the district’s General Fund. Felder stressed that “inaction carries real consequences,” and that advancing this legislation is the only way to prioritize public benefit and safety.
