The District of Columbia is considering legislation to legalize real-money online gambling through a bill that would authorize operators while banning sweepstakes casinos.
Key Takeaways
- Washington, D.C., introduced legislation to regulate online casino gaming under a licensed system.
- The proposal includes a 25% tax rate and strict compliance requirements for operators.
- Sweepstakes platforms using dual-currency models would be banned unless licensed.
Council Bill 260656, otherwise known as the Internet Gaming and Consumer Protection Act of 2026, was introduced April 9 by Councilmember Wendell Felder. The bill has been referred to the Committee on Human Services with a hearing scheduled for April 21.
The measure looks to place oversight with the Office of Lottery and Gaming. Operators would need to acquire licenses, meet compliance standards, and verify users' identities and locations before accepting wagers. The proposed legal gambling age would be 21.
Technical requirements include geolocation features and cybersecurity measures to ensure betting is conducted from approved locations and that security levels are high.
The legislation would also impose a 25% tax on adjusted gross gaming revenue. Operators would pay a $2-million licensing fee. Revenue would be used to fund community and social issues, such as behavioral health services and gambling addiction.
The bill also seeks to ban the use of gambling platforms that use a sweepstakes-style dual-currency model, in which players can convert their virtual money into cash.
Supporters pointed to regulated markets such as New Jersey and Michigan, where iGaming has produced tax revenue while introducing consumer protections. The proposal includes similar safeguards, including deposit limits, self-exclusion tools, and user activity monitoring.
If approved, regulators would have 90 days to finalize rules, with a potential launch within 180 days.
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Maine enacts sweepstakes ban
Maine has also moved to outlaw a category of sweepstakes casino gaming. Gov. Janet Mills signed LD 2007 into law, placing certain online sweeps platforms squarely within the state's definition of illegal gambling activity.
The statute covers internet-based offerings available on computers or mobile devices that mimic casino products, such as slots, poker, or table games, using a dual-currency setup.
Maine's law describes purchasable or promotional coins, tokens, and similar items that may be used for gameplay, then ties that concept to systems that encourage continued spending by attaching redeemable value or reward potential to those units.
Promoters and other supporting participants can also be held liable. Violations are treated as civil matters, with fines ranging from $10,000 to $100,000 per offense.
Stakes are even higher for businesses already holding gambling licenses in the state. A violation carries mandatory license revocation, leaving little room for negotiated outcomes or softer administrative treatment.
Because LD 2007 was not passed as emergency legislation, it will not take effect immediately. The expected start date is around 90 days after adjournment, placing implementation in mid-July 2026.
