Online casinos could be coming to Washington D.C., potentially pushing neighbor states to legalize iGaming as well.
The Internet Gaming and Consumer Protection Act of 2026, a bill introduced by D.C. Councilmember Wendell Felder, would allow online casinos regulated through the Office of Lottery and Gaming. A public hearing for the proposal will be held at 1 p.m. May 4.
Legal online casinos in the District of Columbia, could pressure Maryland and Virginia to follow, given how many residents commute into the D.C. daily each day. Lawmakers risk watching tax dollars that could fund programs at home instead flow to the nation’s capital.
Virginia decided against passing an online casino bill earlier this year, despite a clause that would have required it to pass the legislature again in 2027. BetMGM CEO Adam Greenblatt, however mentioned a possibility of the state legalizing next year. Maryland did not move any iGaming bills out of committee this year despite most of its casino operators testifying in strong support of online casinos.
Details for D.C. online casinos
Felder argued online casinos would boost tax revenue, combat the illegal offshore market and improve consumer protections. The bill also includes a ban on sweepstakes casinos.
There is no cap on licensees under the bill, and each operator would be allowed to operate up to two skins. The OLG could authorize additional skins upon a showing of “good cause” and a determination that approval serves the public interest.
The bill sets a 25% tax on adjusted gross revenue. Operators could deduct promotions up to 1.75% of annual AGR starting in year three, though the OLG could approve a higher cap during an operator’s first 12 months to support market entry. Monthly losses could be carried forward for up to six months.
Operators would pay a $2 million application fee and $500,000 to renew their license every five years. Suppliers would pay a $50,000 application fee and a $25,000 license renewal fee every five years.
Licensees must submit a Certified Business Enterprise plan allocating at least 35% of their D.C.-related operating budget to one or more CBEs.
8 responsible gaming tools required
Felder outlined eight areas where operators must provide responsible gaming tools for bettors:
- Deposit limits for daily, weekly, and monthly periods.
- Spend or loss limits for daily, weekly and monthly periods.
- Session or time limits.
- Cooling-off periods of at least 72 hours.
- Self-exclusion and account closing options consistent with OLG rules.
- Real-time or near real-time access to all account history.
- Periodic reminders of time spent on the platform
- Procedures to “evaluate requests made by third parties to exclude an individual from internet gaming, including requests to exclude an individual from placing sports wagers when the requestor provides documentary evidence of sole joint financial responsibility for the source of funds deposited with an operator by the individual.”
D.C. sportsbooks get advantage
D.C. sports betting operators would get an expedited timeline in the licensing process.
“Possession of a sports wagering operator license or any other gaming license shall entitle an applicant to an expedited review and approval under this title; provided, that the OLG may rely on prior background investigations or licensure history to streamline review where appropriate,” reads the bill.
BetMGM, Caesars, DraftKings, Fanatics and FanDuel all offer online sports betting in D.C.
All of those companies have dedicated online casino platforms that they would love to expand into more jurisdictions. Online casino legalization has moved slowly in North America, with Alberta online casinos the only pending launch outside of Maine, which is facing pushback on its legalization earlier this year.
