A new jurisdiction has just introduced a bill that would both legalize real-money online casinos and outlaw dual-currency sweepstakes casinos.
Washington, DC Council Bill 260656, called the Internet Gaming and Consumer Protection Act of 2026, was filed to the Office of the Secretary of the Council of the District of Columbia on April 9 by Councilmember Wendell Felder, Chairperson of the Subcommittee on Local Business Development. Already, the bill has been assigned to the Committee on Human Services for an April 21 meeting.
The Council of the District of Columbia operates year-round, with monthly meetings of the whole council as well as monthly committee meetings. So there is no real time crunch here.
“Inaction carries real consequences,” Felder wrote in a letter to the Office of the Secretary to file the bill. “Without a legal framework, revenue continues to flow to unregulated operators, consumers remain exposed to risk, and the District falls behind neighboring jurisdictions that are moving forward. By advancing this legislation, we can bring an existing market into a regulated environment that prioritizes safety, accountability, and public benefit.”
DC bill would tax iGaming operators at 25%
Like similar bills that were introduced but later failed in the 2026 session, such as legislation in Virginia, Massachusetts, and Maryland, CB260656 mainly focuses on the legalization of iGaming in the District, with the ban of sweeps casinos as a secondary priority.
Felder’s bill would tax iGaming operators in Washington, DC at 25% of their gross gaming revenue. Initial licensing fees would be $2 million. That would be good for five years, and then each additional five-year renewal would cost $500,000.
CB260656 tasks the Office of Lottery and Gaming with regulating iGaming. The bill doesn’t set any limit on the number of licenses, but it does give preference to operators that already possess a sports betting license. And the minimum age requirement would be 21.
“Evidence from other jurisdictions indicates that legalization shifts a significant share of users from unregulated platforms to regulated ones, improving transparency and accountability,” Felder wrote. “This legislation is designed to reflect those best practices.”
Banning any ‘dual-currency gaming product’
As for the sweepstakes casino component of the bill, CB260656 defines “sweepstakes gaming” as:
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.
The “including through a dual-currency gaming product” is what specifically targets sweeps casinos, as they use a dual-currency model of Gold Coins and Sweeps Coins, where Gold Coins can be purchased but not redeemed for real money, whereas Sweeps Coins cannot be purchased but can be redeemed for real money.
However, CB260656 expands beyond the dual-currency model, specifically highlighting a subscription model as another illegal gaming ecosystem in Washington, DC.
“Consideration may be direct or indirect and includes the purchase of credits, tokens, entries, subscriptions, access, or any similar item or service that is part of the ability to participate or continue participating,” the bill reads.
Attorney General could recoup sweeps casino’s profits
In terms of enforcement, CB260656 empowers the Office of Lottery and Gaming to issue cease-and-desists to sweeps operators. On top of that, it clears the way for the Attorney General of the District of Columbia to “bring a civil action in a court of competent jurisdiction to enforce this title, including actions for injunctive relief, civil penalties, restitution, and disgorgement.”
Translation: The Attorney General can take sweeps operators to court and potentially seize any profits that platform earned while operating unlawfully in Washington, DC.
“National estimates indicate that Americans wager hundreds of billions of dollars annually through unlicensed online gaming platforms, with billions in associated revenue occurring outside of regulated systems,” Felder wrote. “In Washington, D.C., residents are estimated to have wagered approximately $700 million on unlicensed platforms in 2024, reflecting continued growth in this market.
“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.”
Laws in Maryland, Virginia don’t always apply in DC
Although it’s on land split between Maryland and Virginia, something that is illegal in Maryland or Virginia is not automatically illegal in Washington, DC. Although they are geographically close, they are separate jurisdictions with different legal systems.
Maryland and Virginia are states, while Washington, DC is a federal district, meaning each has the authority to create and enforce its own local laws.
So that means that, even if Maryland’s sweeps ban bill, House Bill 1226, pulls off a last-minute thriller and somehow passes through multiple stages, including a full Senate approval, during the last day of Maryland’s 2026 legislative session on Monday, it wouldn’t apply to Washington, DC. District residents would still be able to play Sweeps Coin games at sweeps casinos.
Two jurisdictions — Indiana and Maine — have passed bans on sweeps casinos so far in 2026. Oklahoma is on the cusp of doing so, as well. Meanwhile, bills in Florida, Mississippi, Virginia, Hawaii, and Massachusetts have failed.
