DC Council Hears Pros, Cons Of Regulating Online Casinos

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A bill that would legalize an online casino market in Washington, D.C., received an extensive hearing Monday afternoon with familiar arguments from both sides.

The Council of the District of Columbia’s Committee on Human Service held a hearing Monday on the Councilmember Wendell Felder’s Internet Gaming and Consumer Protection Act of 2026. The bill would legalize DC online casinos and regulate them through the Office of Lottery and Gaming while banning sweepstakes casinos.

Monday’s hearing stretched through multiple panels, weighing the pros and cons of legalizing online casinos.

“This is not about encouraging gambling, but recognizing reality and responding responsibly,” Felder said to kick of the hearing. “They’re already participating, they need safeguards.”

DC online casino bill

Felder’s bill does not cap licenses, but allows each operator to field two skins. The OLG could also authorize additional skins with a showing of “good cause.”

Felder said the legalization would help generate revenue for the District, as well as improve consumer protection and limit the illegal market.

Operators would pay a $2 million application fee, and an annual $500,000 license renewal fee. The bill creates a 25% tax on adjusted gross online casino revenue.

The bill also includes a ban on sweepstakes casinos. It also gives existing sportsbooks in the District an expedited timeline for licenses, including BetMGM, Caesars, DraftKings, Fanatics and FanDuel.

OLG Director Randy Burnside acknowledged potential cannibalization of iLottery products but is sure it would be offset by online casino revenue.

Responsible gambling panel concerned

The first panel was made up of responsible and anti-online gambling proponents, including Stop Predatory Gambling, National Association Against iGaming, Campaign for Fairer Gambling and Safer Gambling Strategies.

The NAAiG argued estimated revenue is overstated and does not outweigh potential social costs.

Brianne Doura-Schawol for the Campaign for Fairer Gambling said the District should not make policies based on bad actors, refuting Felder’s hope a regulated market would help eliminate unlicensed operators. Doura-Schawol also noted the industry is dependent on customers who struggle with responsible gambling.

Bill sets responsible gaming responsibilities

Felder’s bill does establish multiple requirements for responsible gaming tools.

It has eight defined tools operators are required to follow:

  • Daily, weekly, monthly deposit limits
  • Daily, weekly, monthly loss limits
  • Session or time limits
  • 72-hour cooling off periods
  • Self-exclusion and account closing options
  • Real-time or near real-time access to account history
  • Reminders of time spent on the platform
  • Procedures to evaluate requests made by third parties to exclude an individual from online gaming

DC metro area online casino bills

Legislatures in DC’s neighboring states of Maryland and Virginia considered online casino bills this year, but neither passed.

The Virginia Legislature did not pass its online casino bill despite lengthy discussions on the issue. However, BetMGM CEO Adam Greenblatt did recently mention potential Virginia legalization in 2027.

Maryland lawmakers did not advance online casino bills out of committee, despite strong testimonies in favor of the issue.

Photo by AP Photo/Jacquelyn Martin