The capital of the United States of America could be the next U.S. jurisdiction with legal real-money online casinos and, at the same time, the next U.S. jurisdiction with a ban on sweepstakes casino operations. Washington, D.C. City Council Member Wendell Felder has filed a bill to affect both changes simultaneously.
A Monday hearing on the measure drew testimony in opposition to and support of Felder’s filing, including gaming companies. That meeting was purely informational for members, though, and left no assurances that the Council would give the bill any further consideration.

(Photo by Jahi Chikwendiu/The Washington Post via Getty Images)
The summary of B26-0656 focuses on the proposal’s effect on regulated online gambling within the borders of the District of Columbia. People on non-federal lands in that place can already legally wager on sports online but those options would expand significantly if B26-0656 becomes law.
Under the tenets of B26-0656, people of age in eligible parts of D.C. would have access to online poker, slots, and table games within a regulated framework. The system would be similar to that which people have access to in eight U.S. states, such as nearby Pennsylvania.
The proposal from Felder needs majority approval from the council and consent from Congress to become law. B26-0656 is written to give the Office of Lottery and Gaming, D.C.’s gambling regulatory agency, a period of six months to implement the expansion.
The bill also includes language that would clear the path for new licensed online casinos. D.C. could join other U.S. jurisdictions in banning sweepstakes casinos.
B26-0656 also contains portions that explicitly ban the operation of online sweepstakes casinos that use a dual-currency system to award prizes to players. The legislation defines a “dual-currency gaming product.”
“A game, promotional scheme, or platform that uses 2 or more forms of currency, credits, tokens, entries, points, or similar units, whether purchased or awarded, where one or more such units may be redeemed, converted, transferred, or used directly or indirectly for cash, cash equivalents, prizes, or prize equivalents.”
The potential statute also contains clear terms around what “sweepstakes gaming” is.
“A game, promotional contest, or scheme, whether offered online or in person, in which a person provides money, consideration, or something of value, directly or indirectly, for the opportunity to participate in a casino-style game, a simulated casino-style game, a sports wagering-like game, or a lottery-like game and win a prize or prize equivalent, including through a dual-currency gaming product.”
The proposal states that no person shall “offer, promote, or conduct sweepstakes gaming, a dual-currency gaming product, or any other product that mimics or simulates casino-style gaming, sports wagering, lottery-style gaming, or a substantially similar gambling activity.” Further language in the bill covers both direct and indirect consideration in this context to prevent the potential exploitation of any loopholes.
With the legislation introduced, the pertinent issue is whether it will progress in the DC Council. It’s difficult to handicap that movement.
A May 4 hearing on B26-0656 featured oral testimony from potential participants in D.C.’s iGaming landscape, parties concerned with the gaming expansion’s effect on the population, and gaming companies that are opposed to the expansion of online casinos. During the hearing, Felder stressed that inaction on the part of the Council to regulate online casino play carries consequences, including falling behind surrounding states that are considering similar expansion.
Representatives for BetMGM, DraftKings, and FanDuel spoke to the consumer protections their iGaming platforms provide. People testifying in opposition to the measure argued that legalizing online casino play could increase the occurrence of disordered gaming in the population.
Following the testimony, Council members gave no indication of when they might take up B26-0656 again, if at all. Regardless, D.C. is now among the U.S. jurisdictions that sweepstakes casino operators need to watch for potential legislative updates.
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