D.C. iGaming Bill Imposes 25% Tax Rate, Raises Legal Gambling Age to 21, and Bans Sweepstakes-Style Platforms

(AsiaGameHub) –   Washington D.C. is preparing to debate legislation that would legalize real-money online gambling while prohibiting sweepstakes-style casino sites. The bill is scheduled for consideration by the Committee on Human Services on April 21.

Good to Know

• Bill 260656 would tax adjusted gross gaming revenue at 25%.
• Operators would pay a 2 million dollar licensing fee.
• Sweepstakes style dual currency platforms would be barred.

DC Ties iGaming Legalization to a Sweepstakes Ban

Councilmember Wendell Felder presented the Internet Gaming and Consumer Protection Act of 2026 on April 9. Known as Council Bill 260656, the legislation would grant regulatory authority to the Office of Lottery and Gaming upon approval.

The initiative has a dual purpose. It establishes a framework for licensed online gambling operators while simultaneously banning platforms that utilize a dual-currency sweepstakes model, which allows virtual credits to be exchanged for cash. This aspect aligns the bill with a broader national policy effort to distinguish regulated iGaming from sweepstakes casino operations.

Under the proposed law, operators would be required to obtain licenses, adhere to compliance regulations, and verify a user’s identity and location prior to accepting wagers. The minimum legal gambling age would be set at 21. Mandatory safeguards would involve geolocation technology and cybersecurity protocols to ensure betting occurs only within authorized zones and to secure customer information.

The taxation component is straightforward. The legislation would impose a 25% tax on adjusted gross gaming revenue and mandate a $2 million licensing fee. The resulting revenue would be allocated to community and social initiatives, such as behavioral health support and problem gambling programs.

Supporters of the bill cite states like New Jersey and Michigan, where regulated iGaming has generated significant tax income alongside enhanced consumer safeguards. The D.C. proposal mirrors this approach by incorporating player protections like deposit limits, self-exclusion options, and activity monitoring.

A specific timeline is also outlined. Should the bill be enacted, regulators would have 90 days to establish final rules. An operational launch could then occur within 180 days.

FAQ

What is DC Bill 260656?

Bill 260656, titled the Internet Gaming and Consumer Protection Act of 2026, is a legislative proposal to authorize real-money online gambling in Washington D.C.

When will the DC iGaming bill be discussed?

A hearing for the bill is set for April 21 in front of the Committee on Human Services.

What tax rate would the bill set for iGaming operators?

The bill proposes a 25% tax on adjusted gross gaming revenue.

Would the bill ban sweepstakes casinos?

Yes. The legislation would prohibit dual-currency gambling platforms that permit the conversion of virtual funds into cash.

What would operators need to pay for a license?

Operators would be subject to a $2 million license fee.

What player safeguards are included in the bill?

The proposal contains deposit limits, self-exclusion mechanisms, user activity monitoring, identity verification, geolocation, and cybersecurity standards.