D.C. Councilmember Introduces Bill to Legalize iGaming and Prohibit Dual-Currency Sweepstakes

Washington, D.C. Councilmember Wendell Felder (D-Ward 7) has introduced B26-0656, the Internet Gaming and Consumer Protection Act of 2026. The legislation would legalize online casino-style games including blackjack, poker, roulette, and slot-style games on mobile devices and computers. It follows the district’s launch of online sports betting in 2024.

The bill places oversight with the Office of Lottery and Gaming. It sets the minimum player age at 21, applies a 25% tax on gross iGaming revenue, and requires a $2 million initial license fee for a five-year term. Renewal for an additional five years would cost $500,000.

Felder stated that the measure would subject existing iGaming activity to regulation. “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,” Felder wrote in the legislation text. “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.”

Proposed Revenue Allocations and Enforcement

The bill directs the first $500,000 in revenue to the Department of Behavioral Health for addiction prevention, education, and recovery. It then allocates 30% to the Department of Insurance, Securities, and Banking for debt management and financial literacy programs, 30% to the Office of Victim Services and Justice Grants for domestic violence and survivor services, 10% to the Department of Health for gambling research, and 30% to the Department of Employment Services for youth training in artificial intelligence, gaming, coding, and software development.

Felder projected “Initial annual tax revenue could reach tens of millions of dollars, with growth expected as the market matures.” The legislation bans dual-currency gaming products and authorizes civil penalties of up to $100,000 per violation, increasing to $500,000 for repeats. “Inaction carries real consequences,” said 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.”

The Regulatory Path Forward

According to reporting by Yogonet International, the bill seeks to capture revenue from activity already occurring offshore while directing funds to behavioral health, victim support, and community programs. The 25% tax rate and license fees establish clear but material costs for operators. Whether this balance draws licensed participation while closing the sweepstakes channel will determine if the District realizes the projected tens of millions in annual taxes and the consumer protections Felder describes.

Reporting: Yogonet International

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