DC Bill Would Ban Sweepstakes Casinos, Add Online Casinos

  • A new bill would bring online casinos to Washington D.C., while also banning sweepstakes casinos.
  • B26-0656 was introduced by Wendell Felder on Thursday and would offer iGaming to 21+ players with a 25% tax rate.
  • The sweepstakes portion of the bill includes authority to issue cease-and-desist letters and fine operators.

WASHINGTON – Washington D.C. Councilmember Wendell Felder introduced legislation that would legalize online casino and ban sweepstakes casinos in the nation’s capital. D.C. looks to be the second district/state to pass USA online gambling legislation this year alongside Maine.

Felder’s B26-0656 looks to reel in the online gambling revenue that has gone to other states and offshore options. He claims that “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,” in the legislation text addressed to Secretary Nyasha Smith.

Online casino operators would pay $2 million for a five-year license, plus a $500,000 fee for renewals. The Washington D.C. online gambling tax rate is proposed at 25% and operators would be required to implement problem gambling measures like session limits, deposit limits, and self-exclusion measures.

Bill Proposes Sweepstakes Casino Ban In DC

Sweepstakes casinos will be banned in Washington D.C. under B26-0656, as it will “prohibit unlicensed sweepstakes gaming and similar 24 dual-currency gaming products.” The bill defines sweepstakes gaming as “"Sweepstakes gaming" means 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.”

D.C. joins other states aiming to ban sweepstakes casinos, most recently seen with Indiana’s sweeps ban proposal. Tennessee, Maryland, Florida, and more states are prohibiting these dual-currency casinos, even if they aren’t looking to legalize iGaming as D.C. is doing with B26-0656.