SCCG · Sweepstakes

DC iCasino Bill Retains 2026 Passage Prospects Despite Compressed Schedule

DC iCasino Bill Retains 2026 Passage Prospects Despite Compressed Schedule
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Industry sources told SBC Americas the DC Council could still pass the Internet Gaming and Consumer Protection Act before 2027, legalizing iCasino and banning sweepstakes casinos. The bill remains in committee since its May hearing with three legislative meetings left this year. Failure would push reintroduction to a new Council and mayor in 2027 after DC opened its sports betting market in 2024.

SCCG Take — Swift committee action is required to avoid 2027 delays that would leave unlicensed activity intact and defer new licensed iGaming revenue for operators already active in the District's sports betting market.

Washington, D.C. could still legalize online casinos before the current council term expires. Multiple industry sources told SBC Americas that the DC Council could pass Councilmember Wendell Felder's Internet Gaming and Consumer Protection Act of 2026 (B26-0656) by year-end. The bill would regulate iCasino under the Office of Lottery and Gaming while prohibiting sweepstakes casinos.

The legislative window is narrow. The Council's published calendar lists meetings on Nov. 10, Dec. 1 and Dec. 15. The current period ends Jan. 2, 2027. The bill has sat in the Committee on Human Services since its May 4 hearing, where At-large Councilmember Christina Henderson said the jury is still out. Any measure missing the final 2026 session would require reintroduction to a new mayor and partly new Council following this week's elections.

Bill Provisions and Sweepstakes Prohibition

Felder introduced the bill in April after noting DC residents wagered about $700 million on unlicensed platforms in 2024. It would create an open market with no license cap. Operators would pay a $2 million application fee for a five-year license and $500,000 for renewal. Suppliers face $50,000 to apply and $25,000 to renew. The bill allows up to two brands per license, requires players to be 21 or older, authorizes live-dealer and peer-to-peer games, permits shared wallets with sports betting accounts, and enables reciprocal agreements.

Taxation stands at 25% of adjusted gross gaming revenue, with the first $500,000 directed to the Department of Behavioral Health and the balance to the General Fund. The sweepstakes ban defines prohibited products as those using multiple currencies where at least one is redeemable for cash. The OLG could issue cease-and-desist orders, while the DC Attorney General could pursue fines reaching $100,000 per violation or $500,000 for a pattern or practice.

Sports Betting Precedent and Legislative Risks

DC legalized sports betting in 2019 under a lottery monopoly that delivered just $4.3 million in tax revenue against $84 million projected. The market opened to competition in 2024. FanDuel replaced the prior app and recorded $5 million in gross gaming revenue in its first 30 days. July 2026 handle reached $64.2 million, up 14.7% year over year.

DraftKings, BetMGM and Caesars have supported the iCasino measure. BetMGM cited more than $65 million already invested in the District. Stop Predatory Gambling opposed the bill, while ARB Interactive opposed the sweeps ban.

The compressed timeline and pending political transition create material risk that the measure dies with the current Council. Sources nonetheless described prospects as upbeat if the committee acts within weeks. Operators with existing sports betting positions will track the Nov. 10 session as the next decision point in what has become a rapidly evolving local gaming framework.

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