A new Washington D.C. proposal – Council Bill 260656 – could ban sweepstakes casinos while also legalizing iGaming.
Recently filed by Councilmember Wendell Felder, CB 260656 would open D.C. up to online casino games, bringing it in line with:
- New Jersey
- Pennsylvania
- Michigan
- West Virginia
- Connecticut
- Delaware
- Rhode Island
- Maine
Like Maine, where iGaming was recently approved, sweepstakes casinos would be made illegal in D.C., allowing only regulated providers to offer online gaming.
Unregulated Gaming is Already Happening in D.C.
In Cnc. Felder’s cover letter for the bill, he makes the argument that the proposal would protect D.C. residents while also raising tax revenue for the district:
“In Washington, D.C., residents are estimated to have wagered approximately $700 million on unlicensed platforms in 2024, reflecting continued growth in this market. These figures make clear that iGaming is not a new activity—it is already occurring. The policy question is whether the District will regulate it effectively or allow it to remain unregulated.”
It’s a case of: people are already gambling online via unregulated websites, so we should regulate it and tax the operators. It’s not clear whether sweepstakes casinos are included in the $700 million estimation.
Washington D.C. barely ever shows up in sweeps casinos’ restricted states lists, by the way. And D.C. was actually the first jurisdiction to legalize online poker in 2011, but the move was short-lived after political backlash – it was later reversed before a full regulated online gaming market could develop.
Since then, the District has focused instead on sports betting and traditional lottery products regulated through the Office of Lottery and Gaming.
As a district rather than a state, D.C. has a single Council instead of a bicameral legislature. Proposals are made in the form of bills by Councilmembers and sent to the Council for consideration. If they’re successful, they’re subject to mayoral approval and a review by the US Congress.
Contents of CB 260656
This new bill would amend the District’s existing lottery and charitable gaming law (D.C. Law 3-172) and add a new Title V to establish a regulated framework for internet gaming under the Office of Lottery and Gaming (OLG).
Obtaining a license to operate online gaming seems to be more open than we’ve seen in some states’ recent proposed iGaming bills, with any operator free to apply in D.C.’s bill. However, the OLG would oversee licensing, requiring an application fee of $2,000,000 for five years of operation, with $500,000 for renewal later on.
In terms of banning sweepstakes casinos, a ‘dual-currency gaming product’ is defined in the bill as follows:
“(6) “Dual-currency gaming product” means 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.”
Then ‘sweepstakes gaming’ is defined, using the dual-currency definition within it:
“(21) “Sweepstakes gaming” means 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.”
Finally, sweepstakes gaming is prohibited, with the following subsection attached:
“Consideration may be direct or indirect and includes the purchase of credits, tokens, entries, subscriptions, access, or any similar item or service that is part of the ability to participate or continue participating.”
This is a forward thinking, catch-all addition, potentially allowing the bill to capture sweeps casinos who operate a little outside of the vanilla dual-currency system.
For example, Thrillaroo recently launched with a subscription-type model that could be covered by this. We’ve also seen sites like Card Crush and ClubWPT Gold attach their redeemable coins to other products (like cards and ‘hand analysis credits’) to circumvent current sweepstakes bans – perhaps they could be captured here too.
Under the bill, the OLG would also be given license to issue cease-and-desist orders to operators engaged in “unlicensed internet gaming, unlawful sweepstakes gaming, or other conduct prohibited by this title”.
In terms of punishments, the Attorney General of D.C. would be given the power to bring a civil action and request “injunctive relief, civil penalties, restitution, and disgorgement”.
In other words, the enforcement is designed to go beyond simple fines and instead give the AG the ability to halt operations and force operators to hand back money already obtained, rather than just issuing a fixed penalty. The bill also states that each day “shall constitute a separate violation”.
Overall, it’s a comprehensive proposal with harsh consequences for sweepstakes casinos who might violate it. Stakeholders in the sweepstakes space will be watching the bill’s progress closely, and there’s no deadline here as the D.C. Council works on a continuous legislative calendar.
However, it is worth noting that, with a population of around only 700,000 residents, D.C. certainly wouldn’t be the biggest sweeps market to lose this year.
Author: Joseph Allen
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