A Washington, D.C. councilmember wants to legalize online casino gambling in the District as a way to shut down the unlicensed sweepstakes sites that have been operating in a legal gray zone. Councilmember Wendell Felder introduced the Internet Gaming and Consumer Protection Act of 2026, known as B26-0656, which would let adults play blackjack, poker, roulette and slot-style games on their phones and computers while banning the dual-currency sweepstakes products that have proliferated nationwide.
What the Bill Would Actually Do
B26-0656 would place legal iGaming under the oversight of the D.C. Office of Lottery and Gaming and set a minimum player age of 21, according to Yogonet. Operators would pay a 25% tax on gross iGaming revenue plus a $2 million license fee, with licenses valid for five years and renewable for another five at a $500,000 fee, per the same report. The Office of Lottery and Gaming could also levy civil penalties of up to $100,000 per violation, rising to $500,000 for repeat offenses.
At the same time, the bill would prohibit dual-currency gaming products — the kind of sweepstakes platforms that use two forms of credits, one tied directly or indirectly to cash or prizes. Yogonet reports the measure would direct the first $500,000 in iGaming revenue to gambling-addiction prevention, education and recovery services through the Department of Behavioral Health. Felder has said the new market could eventually generate tens of millions of dollars in annual tax revenue, according to the outlet.
A Regulator's Gray-Area Problem
The bill, introduced in April 2026, received a public hearing before the Committee on Human Services on May 4, 2026, where testimony came from Thomas R. Burnside, executive director of the D.C. Office of Lottery and Gaming, according to a hearing notice from the Office of the Chief Financial Officer. As reported by Deadspin, Burnside told lawmakers the Office of Lottery and Gaming is aware of more than 20 unlicensed online sweepstakes sites operating in the District, and he described the legal status of sweepstakes as a gray area because district law doesn't specify what sweepstakes actually are.
Deadspin's reporting notes that B26-0656 would include identity and age verification requirements, anti-money laundering provisions and responsible-gaming safeguards, all according to Burnside's testimony. Burnside also acknowledged that D.C.'s iLottery could see some cannibalization from legal iGaming, but testified that he believes annual iGaming revenue would more than offset those potential losses. The District launched online sports betting in 2024, per Yogonet, meaning iGaming would represent a further expansion of its regulated gambling footprint rather than an entirely new venture.
How D.C.'s Move Compares to Other States
The District's approach stands apart from a wave of states that have simply moved to ban sweepstakes casinos outright. By mid-2026, eleven states had passed explicit statutory bans on the model, with three more enforcing existing gambling laws against it, according to Eye On Annapolis. That outlet lists California, Connecticut, Indiana, Louisiana, Maine, Montana, Nevada, New Jersey, New York and Tennessee among the states with explicit bans in force. Oklahoma's SB 1589 was scheduled to take effect on November 1, 2026.
Montana became the first state to enact a specific statutory ban when Senate Bill 555 took effect in October 2025, a timeline confirmed by both the Eye On Annapolis account and EGR Global. Eye On Annapolis also describes the dual-currency model itself as unlawful gambling under the statutory approach some states have taken, regardless of whether operators also offer a free-play alternative.
Meanwhile, several states already run licensed iGaming markets that offer a glimpse of what D.C.'s could become. Connecticut and New Jersey both have licensed iGaming, per Eye On Annapolis, and Deadspin's reporting notes that Delaware, Rhode Island, West Virginia, Pennsylvania and Michigan also offer regulated online casino gaming. Michigan's market alone generated $3.1 billion in iGaming gross receipts in 2025 alongside $671.3 million in internet sports-betting receipts from commercial and tribal operators, according to the Michigan Gaming Control Board.
Still a Long Way From Law
B26-0656 remains a proposal that must advance through the legislative process before any of its provisions could take effect, Deadspin reported. If the measure does move forward, Deadspin's reporting frames the District as a potential test case for pairing legal iGaming with a crackdown on unlicensed sweepstakes operators — an approach that differs from the outright bans other states have chosen. For now, the official record of the bill's progress sits with the D.C. Council's Legislation Information Management System, where its status will be updated as the Council continues to weigh it.
