Washington DC CB 260656 Advances US Online Casino Debate

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Wed May 06, 2026, 11:00 am ET

Read Time: 3 minutes

Washington DC CB 260656 Advances US Online Casino Debate

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Washington, D.C. lawmakers continue evaluating Council Bill 260656 (CB 260656), which would legalize and regulate online casino gaming in the District. The proposal aims to establish a formal framework for US online casinos under state oversight.

Moreover, the measure signals a continued shift in Washington DC gambling policy toward expanded digital regulation. However, lawmakers, operators, and advocacy groups remain divided over its timing and structure.

Highlights of the DC Council Public Hearing on CB 260656

The D.C. Council's public hearing on CB 260656 focused on how the District should regulate online casino gaming. The bill would authorize online slots, blackjack, poker, and roulette within a licensed market.

Additionally, the proposal sets a 25% tax rate on operator revenue, alongside licensing requirements for operators. A portion of this tax revenue would be legally earmarked to fund problem gambling prevention and treatment programs.

Importantly, testimony revealed that D.C. residents already spend an estimated $700 million annually on unregulated gambling platforms. Supporters argued that regulation could redirect that spending into a taxed and safer system.

Furthermore, the Office of Lottery and Gaming would oversee enforcement, compliance, and consumer protections. These include deposit limits, self-exclusion tools, and responsible gambling safeguards.

Industry stakeholders such as FanDuel, DraftKings, and BetMGM testified in favor of legalization. They argued that regulation would improve consumer safety while capturing lost tax revenue.

However, debate intensified over market structure. Some stakeholders warned that online casinos could reduce revenue from physical venues, including nearby properties like MGM National Harbor. This "cannibalization" concern remains a key sticking point.

Another major issue involves the proposed ban on sweepstakes casino platforms. Traditional gaming operators strongly support the ban, arguing these platforms exploit regulatory loopholes. 

However, some social gaming advocates and community members oppose it, saying sweepstakes games provide low-risk entertainment options. This disagreement has contributed to delays in legislative momentum.

Supporters and Opponents Debate Regulation, Revenue, and Risk

The hearing highlighted a clear divide between supporters and opponents of Washington DC gambling expansion. Supporters emphasized that regulation would bring existing offshore activity into a taxed and controlled environment.

In contrast, critics warned that legalization could increase gambling-related harm. They raised concerns about addiction risks, advertising exposure, and expanded access to online gaming.

Additionally, opponents questioned whether regulatory measures would significantly reduce illegal gambling activity. Despite differing views, both sides agreed that unlicensed online gambling is already widespread in the District.

As a result, the debate now focuses on whether regulation improves outcomes compared to prohibition.

Washington DC iGaming Expansion Slows Ahead of Legislative Recess

Washington, D.C. appears increasingly open to iGaming expansion compared to previous years. Historically, the District maintained a cautious stance on gambling. However, it has gradually expanded regulated sports betting in recent years.

As a result, CB 260656 reflects a broader shift toward structured oversight of digital gambling markets. Still, lawmakers have not scheduled a final vote on the bill.

Importantly, the Council is approaching a legislative recess, which limits immediate progress. This timing issue, combined with disagreements over the sweepstakes ban, has slowed momentum.

Going forward, further committee revisions and negotiations are expected. Ultimately, lawmakers must decide how to balance revenue opportunities, consumer protection, and industry concerns within the evolving US online casinos landscape.

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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