There’s a pattern emerging in how US lawmakers are approaching sweepstakes casinos, and Washington DC’s new bill captures it perfectly. Rather than just banning the gray market and leaving players with nothing, Councilmember Wendell Felder introduced B26-0656 on April 9, 2026 — the Internet Gaming and Consumer Protection Act of 2026 — which would do two things simultaneously: legalize real-money online casino gaming under a licensed regulatory framework, and ban sweepstakes casinos operating outside that framework. It’s a trade-off, and it’s worth understanding clearly.
What B26-0656 Would Actually Create
DC already has legal mobile sports betting — it’s been available since 2019, with the current expanded form coming through the Sports Wagering Amendment Act of 2024, and there are currently five licensed operators offering digital wagering in the District. B26-0656 would build on that foundation by authorizing full iGaming: slots, poker, blackjack, roulette, and live dealer games, regulated by the Office of Lottery and Gaming (OLG) under the supervision of Chief Financial Officer Glen Lee.
The licensing framework is substantial. Initial operator licenses would cost $2 million for a five-year term, with renewals set at $500,000 for subsequent five-year periods. Operators would be taxed at 25 percent of adjusted gross revenue. Existing mobile sports betting operators in DC would receive priority processing, with regulators permitted to use prior licensing history to accelerate approvals — which means names like DraftKings and FanDuel already have a head start. Each approved operator could run up to two online gaming platforms, with regulators able to authorize additional brands if market demand justifies it. The minimum age requirement would be 21.
The Sweepstakes Ban: What It Would Prohibit
The bill defines sweepstakes gaming broadly, targeting any game — online or in person — in which a player provides money or something of value, directly or indirectly, for the chance to play casino-style games and win a prize. The language specifically calls out dual-currency gaming products, which is the model used by virtually every sweepstakes casino platform currently operating. That model — where you buy Gold Coins and receive free Sweeps Coins that can later be redeemed for real cash prizes — would be classified as unlawful gambling in DC under this bill.
Enforcement teeth are real. The OLG would have authority to issue cease-and-desist orders and pursue court intervention. Fines could reach $100,000 per offense or $500,000 for repeated violations. Perhaps most significantly, the bill would empower the DC Attorney General to bring civil actions seeking injunctive relief, civil penalties, restitution, and disgorgement — meaning the AG could pursue the profits a sweepstakes operator earned while operating unlawfully in the District.
Why DC Is an Interesting Test Case
Unlike most states pursuing iGaming legalization, Washington DC has no land-based casinos and B26-0656 does not authorize any. The proposed framework is entirely digital, which makes DC a unique model in the US: a licensed online gaming market with no physical casino anchor. The bill would not alter the DC lottery or sports betting frameworks — it’s a new layer on top of the existing digital gaming infrastructure.
The bill was referred to the Committee on Human Services with public hearings scheduled between April and May 2026. That’s still the early innings — DC’s legislative process runs through the DC Council, and there’s no guarantee the bill reaches a vote in its current form. Councilmember Felder framed the proposal as “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.” That framing — capture lost revenue, strengthen consumer protections, replace gray market with regulated market — is the same argument being made in states like Maryland, Virginia, and Massachusetts, all of which have introduced similar iGaming bills in 2026, though none has passed yet.
The Responsible Gaming Component
B26-0656 places significant emphasis on consumer protections that sweepstakes platforms typically do not offer with the same rigor. Licensed iGaming operators under the bill would be required to provide customizable deposit and spending limits, session time controls, mandatory cooling-off periods, and self-exclusion options. Players would have access to account activity tracking and periodic usage notifications. The first $500,000 in monthly revenue would be directed to the Department of Behavioral Health. Promotional spending would not be deductible during the first three years of operation, after which deductions would be capped at 1.75 percent of revenue annually.
What This Means for DC Residents Right Now
The bill is not law yet. As of April 2026, sweepstakes casinos remain accessible in Washington DC, and nothing changes until and unless this legislation passes and a 180-day implementation window closes. If you are a DC resident currently using sweepstakes platforms, you are in a holding pattern. But the direction of travel is clear: if B26-0656 passes in anything close to its current form, the sweepstakes gray market in the District ends, and a licensed real-money iGaming market takes its place. That is a better outcome for most players who want consumer protections, regulated payouts, and a legal framework — but it does mean the free-to-play model goes away. Watch the Committee on Human Services hearings through May for signals on whether this moves forward.
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