D.C. iGaming Bill Adds 25 Percent Tax, Age 21 Rule and Sweepstakes Block

Washington DC is set to discuss a bill that would open the door to legal real money online gambling and shut out sweepstakes style casino platforms. The proposal goes before the Committee on Human Services on April 21.

Good to Know

• Bill 260656 would tax adjusted gross gaming revenue at 25%.
• Operators would pay a 2 million dollar licensing fee.
• Sweepstakes style dual currency platforms would be barred.

DC Ties iGaming Legalization to a Sweepstakes Ban

Councilmember Wendell Felder introduced the Internet Gaming and Consumer Protection Act of 2026 on April 9. The measure, listed as Council Bill 260656, would put the Office of Lottery and Gaming in charge of oversight if lawmakers approve it.

The proposal does two things at once. It creates a path for licensed online gambling operators, and it blocks platforms that use a sweepstakes dual currency setup where virtual funds can be turned into cash. That part puts the bill in line with a wider policy fight across the US, where lawmakers and regulators keep separating regulated iGaming from sweepstakes casino models.

Under the bill, operators would need licenses, follow compliance rules, and confirm both identity and location before taking bets. The legal gambling age would be 21. Required controls would include geolocation tools and cybersecurity standards designed to keep wagering inside approved areas and protect user data.

The tax piece is direct. The bill would set a 25% tax on adjusted gross gaming revenue and require a 2 million dollar licensing fee. Money raised would go toward community and social needs, including behavioral health services and gambling addiction programs.

Backers of the measure pointed to states such as New Jersey and Michigan, where regulated iGaming has already produced tax revenue while adding player protections. DC follows that line in the consumer protection section of the bill, with deposit limits, self exclusion tools, and activity monitoring written into the proposal.

Timing is also spelled out. If the bill passes, regulators would get 90 days to finalize rules. A launch could follow within 180 days.

FAQ

What is DC Bill 260656?

Bill 260656 is the Internet Gaming and Consumer Protection Act of 2026, a proposal to legalize real money online gambling in Washington DC.

When will the DC iGaming bill be discussed?

The bill is scheduled for a hearing on April 21 before the Committee on Human Services.

What tax rate would the bill set for iGaming operators?

The proposal would tax adjusted gross gaming revenue at 25%.

Would the bill ban sweepstakes casinos?

Yes. The measure would ban dual currency gambling platforms that let players convert virtual funds into cash.

What would operators need to pay for a license?

Operators would face a 2 million dollar licensing fee.

What player safeguards are included in the bill?

The proposal includes deposit limits, self exclusion tools, user monitoring, identity checks, geolocation, and cybersecurity requirements.