Washington DC City Councilor Proposes Legalized iGaming
Posted on: April 13, 2026, 12:22h.
Last updated on: April 14, 2026, 04:35h.
- A city councilor in Washington wants to legalize iGaming
- Internet Gaming and Consumer Protection Act includes $2 million license fee for a five year license
- The nation’s capital already has online sports betting
A D.C. councilmember is pushing to legalize iGaming, arguing the city should regulate and tax online casinos, tabling a bill aimed at accomplishing this aim.
Councilmember Wendell Felder (D-Ward 7) chairs the Subcommittee on Local Business Development. Felder, a DC native who won the 2024 election to succeed former Mayor Vincent Gray after he retired, believes authorizing iGaming would be a net positive for the District.
Felder asserted that iGaming, online casino-style games such as blackjack, poker, roulette, and slot-style games played on mobile devices or computers, is already accessible to District residents through unregulated and offshore platforms.
In the absence of a legal framework, these platforms operate without meaningful consumer safeguards, age verification, or regulatory oversight, creating risks for residents and limiting the District’s ability to respond,” Felder wrote Council Secretary Nyasha Smith.
“The policy question is whether the District will regulate it effectively or allow it to remain unregulated,” Felder added.
Currently, iGaming is only legal in Connecticut, Delaware, Maine, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia.
iGaming in Nation’s Capital
Felder has introduced the Internet Gaming and Consumer Protection Act, a bill to permit iGaming within the District.
Operators like DraftKings and FanDuel would pay a $2 million upfront fee for a license good for five years. Renewals would cost $500,000 every five years thereafter.
Felder suggests imposing a 25% tax on gross gaming revenue from iGaming. The city’s first $500,000 received from the online casino platforms would be earmarked for gambling addiction and related behavioral health needs.
The remaining tax would be directed to the General Fund, where 90% of the proceeds would be split equally between the Office of Victims Services and Justice Grants, the Department of Employment Services, and the Department of Insurance, Securities, and Banking.
The iGaming tax money would support an array of city services, from helping victims of domestic violence to funding youth development and training programs related to artificial intelligence, gaming, software, and coding.
The taxes would also help those in need of financial counseling, financial literacy, and debt management.
“Inaction carries real consequences. Without a legal framework, revenue continues to flow to unregulated operators, consumers remain exposed to risk, and the District falls behind neighboring jurisdictions that are moving forward,” Felder explained.
“By advancing this legislation, we can bring an existing market into a regulated environment that prioritizes safety, accountability, and public benefit,” he added.
The General Fund’s remaining 10% iGaming tax proceeds would go to the Department of Health for research and evaluation services on gambling behaviors and addiction.
DC Sports Betting
DC’s sports betting market experienced exponential growth in 2025 after the city, in mid-2024, welcomed additional online sportsbooks to compete with its city-run platform.
The spring and summer 2024 introductions of FanDuel, DraftKings, BetMGM, and Caesars Sportsbook, along with Fanatics joining in September 2024, led to sports bets surging 85% in 2025 to $828.5 million. The city’s sportsbooks generated gross revenue of $91.4 million on the wagers.
The addition of iGaming to the mix would undoubtedly lead to strong growth through the ability to cross-promote between the two verticals.
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