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Washington, D.C., Councilmember Wendell Felder has proposed legalizing online casinos and banning dual-currency sweepstakes products under the Internet Gaming and Consumer Protection Act of 2026. The measure, B26-0656, would impose a 25% tax on gross iGaming revenue and remains a proposal, according to Hoodline.
Hoodline’s report identifies Michigan as an existing regulated online casino market, reporting $3.1 billion in iGaming gross receipts from Michigan’s commercial and tribal operators in 2025. It separately reports $671.3 million in internet sports-betting receipts that year.
D.C. proposal sets licensing and consumer-protection rules
The bill would allow adults 21 and older to play blackjack, poker, roulette and slot-style games on phones and computers. The D.C. Office of Lottery and Gaming would oversee the market.
Operators would pay a $2 million fee for a five-year license. A further five-year renewal would cost $500,000.
The proposal includes identity and age verification, anti-money laundering provisions and responsible-gaming safeguards. The first $500,000 in iGaming revenue would go to gambling-addiction prevention, education and recovery services through the Department of Behavioral Health.
The Office of Lottery and Gaming could impose civil penalties of up to $100,000 per violation, rising to $500,000 for repeat offenses.
Sweepstakes restrictions remain part of a pending bill
Introduced in April 2026, the measure received a public hearing before the Committee on Human Services on May 4.
At that hearing, Office of Lottery and Gaming Executive Director Thomas R. Burnside said the agency knew of more than 20 unlicensed online sweepstakes sites operating in the District. According to Hoodline, he described their legal status as a gray area because District law does not define sweepstakes.
Addressing potential losses to D.C.’s iLottery, Burnside said he believed “annual iGaming revenue would more than offset those potential losses.” That was his assessment, not an established revenue outcome.
B26-0656 must still advance through the legislative process before its provisions can take effect.
If you or someone you know has a gambling problem, call 1-800-GAMBLER, which connects to Michigan’s Problem Gambling Helpline 24/7.
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Source: As reported by Hoodline.
