Washington D.C. Bill 260656 Seeks to Legalize Online Casinos

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Tue Apr 14, 2026, 7:00 am ET

Read Time: 3 minutes

Washington D.C. Bill 260656 Seeks to Legalize Online Casinos

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Washington, D.C. lawmakers have introduced a major piece of legislation aimed at reshaping the district's digital gambling landscape with Council Bill 260656. The proposal seeks to legalize online casino gaming while strengthening regulatory oversight. 

It also reflects growing momentum in Washington D.C. gambling reform. At the same time, it targets unregulated sweepstakes platforms. If approved, the bill could significantly reshape the local iGaming environment.

Council Bill 260656 Advances Online Casino Legalization

Council Bill 260656, also known as the Internet Gaming and Consumer Protection Act of 2026, was introduced on April 9, 2026, by Councilmember Wendell Felder. The legislation focuses on authorizing licensed online casino operations in the district. It also seeks to create a tightly regulated framework for digital gaming expansion.

The bill has been referred to the Committee on Human Services, with a public hearing scheduled for April 21, 2026, signaling a rapid legislative timeline.

Lawmakers designed the proposal to expand regulated iGaming while eliminating gray-market operators. This dual strategy mirrors broader regulatory trends across US online casinos markets. It also aims to increase transparency and consumer protection.

Key Provisions of the Internet Gaming and Consumer Protection Act

First, the bill would legalize online casino gaming across the district. Licensed operators could offer games such as slots, blackjack, roulette, and poker. These offerings would operate under strict regulatory oversight.

Second, the legislation introduces significant financial requirements. Operators would face a 25% tax on adjusted gross gaming revenue. Additionally, they must pay a $2 million initial licensing fee. These costs position Washington, D.C. as a high-barrier market for entry.

As a result, analysts expect only well-capitalized operators to participate. However, officials argue that the structure will maximize public revenue. It also ensures long-term market stability.

Third, the bill includes strong consumer protection rules. These measures require age verification, responsible gaming tools, and secure payment systems. Lawmakers aim to reduce harm while improving oversight.

In addition, the proposal explicitly bans sweepstakes casinos. These platforms often use dual-currency systems that mimic gambling. Regulators argue they operate without sufficient oversight. Therefore, the bill seeks to eliminate them entirely from the market.

Officials believe this ban will close regulatory loopholes. It also ensures that licensed operators compete on a level playing field. This approach aligns with enforcement trends seen in US online sportsbooks and broader gambling markets.

Recent Developments in Washington, D.C. Gambling

Washington, D.C. has steadily expanded its gambling framework over recent years. The district legalized sports betting in 2018. Since then, regulated wagering has become part of the local market.

Today, US online sportsbooks operate legally in the district. However, online casino gaming remains prohibited. Players currently rely on retail casinos or out-of-state platforms.

This gap has allowed sweepstakes casinos to gain popularity. These platforms often operate in regulatory gray zones. As a result, lawmakers have raised concerns about consumer risks and tax leakage.

Council Bill 260656 seeks to close this gap. It aims to bring online casino gaming under a regulated structure. It also intends to eliminate unregulated competitors.

If passed, the bill would mark a major milestone for Washington D.C. gambling policy. Moreover, it would align the district with other U.S. jurisdictions exploring iGaming legalization.

The proposal highlights a broader national shift toward regulated digital gaming expansion.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

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