(AsiaGameHub) –   Lawmakers in Washington D.C. are considering a bill that would legalize real-money online casino gaming, impose taxes on operators, and prohibit sweepstakes-style casino products.

The proposed legislation would apply to adults aged 21 and over on nonfederal land within the District. Eligible players would be able to access online versions of blackjack, poker, roulette, and slot games through licensed platforms.

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Key Provisions of the Bill:

• A 25% tax would be levied on adjusted gross internet gaming revenue.
• Operators would also be subject to a 2% regulatory fee and a 2% community contribution.
• The proposal explicitly bans sweepstakes gaming and dual-currency casino-style products.

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Argument for Legal iGaming Fueled by Offshore Play

Councilmember Wendell Felder has introduced the bill based on the premise that D.C. residents are already engaging in online casino activities, often through offshore operators. He stated, “If the activity is already happening, the District should be the one setting the rules.”

Representatives from iGaming operators such as FanDuel, DraftKings, and BetMGM supported this argument during a recent city council hearing, estimating that Washington D.C. customers spend approximately $700 million annually on unlicensed offshore iCasino platforms.

Legal operators also highlighted the bill’s provisions for safer gambling controls, which would include deposit limits, loss caps, time restrictions, cooling-off periods, self-exclusion tools, default limits for new accounts, staff training, and stricter marketing regulations.

Conversely, opponents expressed concerns that legalizing online casinos could exacerbate financial difficulties for residents already facing economic challenges. Les Bernal, national director of Stop Predatory Gambling, metaphorically described the situation as “putting Dracula in charge of the blood bank.”

The Office of Lottery and Gaming would be responsible for regulating the market. While OLG officials indicated support for most of the regulatory aspects of the bill, they did not fully endorse or reject the concept of online casino legalization.

The licensing framework would remain open, with no limit on the number of operators. Companies already operating mobile sports betting in D.C., including BetMGM, Caesars, DraftKings, FanDuel, Fanatics, and theScore Bet, would be eligible to apply for iCasino licenses. Additional casino and sportsbook brands could also apply. Typically, each operator would be permitted two approved gaming brands, unless regulators approve more.

A specific section of the bill addresses sweepstakes casinos. It prohibits “sweepstakes gaming” and dual-currency systems that mimic casino gambling without adhering to standard gambling regulations. The attorney general would have the authority to issue cease-and-desist orders, seek injunctions, and impose fines of up to $100,000 per violation, with potential for higher penalties in repeat cases.

Several representatives from sweepstakes casino companies testified against the proposal.

No vote was taken following the hearing. The bill requires approval from the full 13-member council to become law. If passed, the city CFO would have 90 days to establish regulations, and a launch could occur within 180 days after the regulatory systems are in place. Several operators indicated they could be ready to launch within six months.

Washington D.C. would join eight other states with legal real-money iCasino markets. New Jersey, Pennsylvania, West Virginia, and Michigan currently have the largest iCasino markets in the U.S., each with more than five operators.

Felder emphasized the consequences of inaction, stating, “Inaction carries real consequences. Consumers remain exposed to risk, and the District falls behind neighboring jurisdictions that are moving forward.”