In Washington D.C. District of Columbia Councilmember Wendell Felder introduced a bill to establish a regulatory framework for online casinos. The initiative, called the Internet Gambling and Consumer Protection Act of 2026, responds to a specific diagnosis: in 2024, District residents spent approximately $700 million on offshore online gambling platforms, without local regulation or consumer protection.
Felder’s central argument is that this money is already circulating, but it does so outside the regulated system and without fiscal benefit to the District. The proposal aims to capture this activity within a legal framework that generates public resources and guarantees minimum protection conditions for players.
What games would be allowed and who could play
According to the proposal, licensed operators could offer online blackjack, poker, roulette, and slots. Access would be restricted to those over 21 who are physically within the District at the time of placing the bet, a condition that would be verified through geolocation technology.
The District’s Office of Lottery and Gaming would be in charge of regulating and supervising the system, with responsibility for identity verification, geolocation, and cybersecurity standards that operators must meet to obtain and maintain their license.
The licensing system: costs, taxes, and obligations
Operators interested in operating in the D.C. market would have to pay an initial license fee of $2 million. Renewals would be set at $500,000 every five years. These fees seek to ensure that only actors with financial capacity and long-term commitment enter the regulated market.
Adjusted gross gaming revenue would be subject to a 25% tax. A portion of the additional levies would go to a Community Reinvestment Fund, designed to fund financial counseling programs, victim services, public health research, staff training, and gambling addiction care services.
The tax structure seeks to ensure that the sector’s growth generates concrete returns for the communities most affected by problem gambling, aligning operator incentives with the district’s public health goals.
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The ban on sweepstakes casinos: closing a legal loophole
One of the most relevant aspects of the project is the explicit prohibition of sweepstakes platforms, known in the English-speaking market as sweepstakes casinos. These platforms operate by distributing virtual coins that users can exchange for cash or prizes, allowing them to replicate the online casino experience without technically falling within the legal definition of gambling.
The Congressional obstacle: how Washington D.C.’s legislative process works
Although the District of Columbia has the capacity to legislate autonomously under the Home Rule Act, any rule approved by the City Council must go through a review period in the federal Congress before taking effect.
Congress rarely exercises its power of disapproval, although the possibility exists and gambling matters have generated attention in the past. If the review period passes without Congress acting, the law could take effect automatically.
Once that stage is passed, the District’s regulatory bodies would have 90 days to draft implementation rules, with a total period of 180 days to launch the system, provided all regulatory requirements are met.
The context: a $700 million market operating without control
Felder’s initiative is part of a broader debate on the regulation of online gambling in the United States. The absence of a unified federal framework has generated a fragmented environment, where different states move forward with their own regulatory models, while others maintain legal loopholes exploited by unauthorized operators.
If the project moves forward, D.C. would join the states that have chosen to regulate iGaming instead of banning it, betting that an orderly and supervised market generates better results than shifting demand to unregulated platforms.
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