A new bill in Washington DC proposes regulating the online casino industry. The legislation would legalize iGaming and prohibit sweepstakes casinos, which currently operate under a legal loophole.
“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,” wrote the bill’s sponsor, Wendell Felder, when introducing the bill.
The legislation aims to control the market, protect players, raise tax revenue, and take action against illegal operators.
Felder acts as the Chairperson of the Subcommittee on Local Business Development. The legislation has been assigned to the Committee on Human Services, with a public hearing scheduled for next month.
Bill Aims to Offer Consumer Safeguards
“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,” Felder added.
If approved, Washington DC would become the ninth district in the US to officially allow residents to play online casino games. Maine became the eighth state when Gov. Janet Mills signed legislation in January, although the tribal-exclusivity framework is being challenged by the state’s commercial casinos.
Felder’s bill would both legalize online casinos and prohibit unlicensed platforms, including sweepstakes casinos.
The bill’s text defines sweepstakes gaming as “a game, promotional contest, or scheme, whether offered online or in person, in which a person provides money, consideration, or something of value, directly or indirectly, for the opportunity to participate in a casino-style game, a simulated casino-style game, a sports wagering-like game, or a lottery-like game and win a prize or prize equivalent, including through a dual-currency gaming product.”
In Maine, lawmakers passed a separate bill prohibiting the platforms after approving the iGaming legislation. Maine became the second state, after Indiana, to ban sweepstakes casinos this year, following a host of states passing legislation against operators last year.
Terms of Legal iGaming
Operators offering sports betting in Washington, DC, would each be entitled to launch two branded online casino platforms under the legislation.
Platforms would pay $2 million for a five-year license. Operators would then pay an additional $500,000 for each five-year renewal.
DC initially launched sports betting through the Office of Lottery and Gaming’s (OLG) own platform, GambetDC. FanDuel took over as the main operator in 2024, before other commercial companies launched in the same year.
Now, in addition to FanDuel, DraftKings, BetMGM, Fanatics, and Caesars Sportsbook, are operational. All companies are likely eager to launch online casino platforms, which are a key driver of revenue.
Legal iGaming Will Generate Big Tax Revenue
The bill sets a 25% tax rate on gross gaming revenue. Based on comparable markets, Felder claims that this will generate “substantial new tax revenue.”
“Initial annual tax revenue could reach tens of millions of dollars, with growth expected as the market matures,” said Felder. “These funds could support critical priorities, including behavioral health services, responsible gaming programs, and broader community investments.”
From the tax revenue collected, the first $500,000 would go towards problem gambling treatment. The remaining funds would cover the OLG’s operational costs, with the rest going to the district’s General Fund.
Notably, the bill does not distribute a percentage of revenue towards the OLG, but only states that it will cover its costs.
Arizona has come under scrutiny recently as the state’s Department of Gaming receives a percentage of tribal gaming revenue. This may create a conflict of interest and could be a decisive factor in the regulator’s aggressive legal pursuit against prediction markets. It is in the regulator’s interest to protect existing operators rather than enforce regulations.
Felder stressed that in DC, the legal market would be controlled appropriately, reducing risk for users already using unlicensed platforms.
“Inaction carries real consequences,” wrote Felder. “Without a legal framework, revenue continues to flow to unregulated operators, consumers remain exposed to risk, and the District falls behind neighboring jurisdictions that are moving forward. By advancing this legislation, we can bring an existing market into a regulated environment that prioritizes safety, accountability, and public benefit.”
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A new bill in Washington DC proposes regulating the online casino industry. The legislation would legalize iGaming and prohibit sweepstakes casinos, which currently operate under a legal loophole. “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
The post New Washington DC Bill Proposes Legalizing iGaming & Banning Sweepstake Casinos appeared first on CasinoBeats.