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Washington DC legislation could legalize iGaming, prohibit sweepstakes casino activity

The Internet Gaming and Consumer Protection Act was introduced by Councilmember Wendell Felder and aims to ban unlicensed gambling operators implementing a dual-currency payment system.

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Washington DC legislation could legalize iGaming, prohibit sweepstakes casino activity
Key Points
Felder’s legislation has been referred to the Committee on Human Services for further consideration
iGaming in Washington DC would be under the regulatory oversight of the Office of Lottery and Gaming

Councilmember Wendell Felder has introduced legislation aimed at legalizing online casino gambling in Washington DC, as well as prohibiting unlicensed sweepstakes operators utilizing a dual-currency payment system. 

In a letter addressed to the DC Council, Felder said: “This bill reflects a practical, data-informed approach to strengthening consumer protections, modernizing our gaming framework and capturing revenue that is currently flowing outside of the district’s oversight.”

According to the Washington DC lawmaker, residents wagered approximately $700m on unlicensed and offshore gambling platforms during 2024. 

“These figures make clear that iGaming is not a new activity – it is already occurring. The policy question is whether the district will regulate it effectively or allow it to remain unregulated,” Felder said. 

The Internet Gaming and Consumer Protection Act would put online casino gambling under the regulatory authority of the Office of Lottery and Gaming, which can also issue operator and supplier licenses under Felder’s legislation. 

There is currently no limit on the number of licenses which can be handed out by the Office of Lottery and Gaming, but prospective operators are required to submit a $2m application fee for an initial license carrying a five-year term. 

Any renewals of the iGaming licenses will also run for five years and would cost entities $500,000 in fees. Operators would be taxed at a 25% rate on adjusted gaming revenue, with contributions being spread out between the Department of Behavioral Health and various other offices. 

The Office of Lottery and Gaming would also have the ability to issue cease-and-desist orders to unlicensed sweepstakes casinos currently operating in Washington DC, as well as enforce civil fines of up to $100,000 for each violation. 

The Internet Gaming and Consumer Protection Act defines dual-currency gaming products as a “game, promotional scheme or platform that uses two or more forms of currency… where one or more such units may be redeemed… for cash or prize equivalents.”

Maine also enacted legislation prohibiting online sweepstakes games on April 8, establishing civil penalties and linking violations to the state's unlawful gambling provisions.

The measure was signed into law by Maine Governor Janet Mills after clearing both chambers of the state legislature. It creates a new section in state law that bans any person from operating, promoting or supporting the operation or promotion of an online sweepstakes game.

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