D.C. Bill Would Legalize Online Casinos, Ban Sweepstakes Platforms — But Faces Long Road Ahead

D.C. Councilmember Renews Push to Legalize Online Casinos While Banning Sweepstakes Platforms

A Washington, D.C. bill that would legalize regulated real-money online casino gaming while simultaneously banning dual-currency sweepstakes casino platforms is drawing renewed attention this week, according to Hoodline and CDC Gaming Reports. The legislation, known as B26-0656, is sponsored by Councilmember Wendell Felder, a Democrat representing Ward 7, according to Yogonet.

The bill is formally titled the Internet Gaming and Consumer Protection Act of 2026, per Yogonet, and has been assigned to the Office of Lottery and Gaming for implementation if it ultimately becomes law.

What the Bill Would Require

According to Hoodline, the legislation sets a minimum gambling age of 21 and would impose a 25 percent tax on gross iGaming revenue generated by licensed operators in the District. Hoodline also reports that the bill includes civil penalties of up to $100,000 per violation, with repeat offenses subject to penalties as high as $500,000.

On the licensing side, Casino Reports reports that the bill calls for an initial license fee of $2 million, with licenses running for a five-year term and a $500,000 renewal fee required to maintain that license afterward.

At the same time the bill would open the door to regulated real-money online casinos, it would close the door on sweepstakes-style, dual-currency casino platforms currently operating in the District, according to CDC Gaming Reports, which confirmed that Felder's proposal would legalize iGaming while explicitly banning sweepstakes gaming models.

Where the Bill Stands Now

The legislation is still in the early stages of the legislative process. Bettors Insider reports that the Committee on Human Services held the bill's first public hearing on May 4, 2026, and that no committee vote was taken at that time.

Even if the bill eventually clears committee, it faces several more steps before it could take effect. Casino.band reports that the legislation would still need full D.C. Council approval, the mayor's signature, and a 60-day congressional review period, since D.C. laws are subject to congressional oversight. That means, per Casino.band's reporting, sweepstakes casinos remain legal to operate in the District for now, and no effective date for any ban has been set.

What This Means for Players

Are sweepstakes casinos currently illegal in Washington, D.C.?

No. Based on reporting from Casino.band, the bill that would ban sweepstakes casino platforms has not passed the D.C. Council, has not been signed by the mayor, and has not completed the required congressional review period. Sweepstakes platforms remain legal to operate in the District while the bill works through this process.

When could this bill actually take effect?

There is no confirmed timeline. Bettors Insider reported only that a first hearing occurred on May 4, 2026, with no vote taken, and Casino.band noted that full Council approval, a mayoral signature, and a 60-day congressional review would all still be required. Any effective date at this point would be speculative, and players should treat this as a pending proposal rather than settled law.

How would the proposed license fees and tax rate affect players?

If the bill eventually passes as described by Hoodline and Casino Reports, operators would face a 25 percent tax on gross iGaming revenue, a $2 million initial license fee, and a $500,000 renewal fee every five years. These costs are typically borne by licensed operators rather than billed directly to players, though they can influence which companies choose to enter a regulated market and what promotions or odds they offer.

What should sweepstakes casino players in D.C. do right now?

Because the bill has not been enacted, there is no immediate change required for current players. Those who do participate in sweepstakes casino or real-money gaming platforms, in D.C. or elsewhere, should keep in mind that the minimum age for gambling activity is 18+ (21+ in some jurisdictions), and anyone concerned about their gambling habits can contact 1-800-GAMBLER or 1-800-MY-RESET for confidential support.