Washington, D.C. Considers Online Casino Gaming
Both supporters and opponents of legalizing iGaming in Washington, D.C. were faced with serious challenges to their assertions during an informative four-hour hearing of the Council of the District of Columbia’s Committee on Human Service held on May 4, 2026.
The topic was the Internet Gaming and Consumer Protection Act of 2026 bill.
Wendell Felder, the sponsor of the bill, kicked off the proceedings with this statement:
"This is not about encouraging gambling - it is about recognizing reality and responding responsibly," Felder said. "Residents already are participating, and they need safeguards to protect them."
But Les Bernal, the national director of the Stop Predatory Gambling organization, immediately disputed that description - saying that legalization "is just going to create more gamblers."
Bernal estimated that no more than one out of every 100 online gamblers make a profit, and added that internet casino gambling is particularly addictive. He described it as "gambling fentanyl," with 70 to 80 percent of the revenue being extracted from just 10 percent of the participants.
Brianne Doura-Schawohl, the director of the Campaign for Fairer Gambling, testified that iGaming is "10 times more addictive" than other gambling options. She added that minorities and active members of the military are among those with the highest risk of harm from iGaming legalization.
Doura-Schawohl said that far too many teenagers already are receiving advertising offers to gamble on their social media feeds, and that would only increase if iGaming was legalized.
Keith Whyte, a longtime expert on the causes of and treatment for compulsive gambling, stressed that if the district were to approve iGaming, it must ensure that adequate funding be set aside for treatment for those negatively impacted by the newly-authorized gambling option.
The case for iGaming legalization
Representatives from various sportsbooks spoke in favor of iGaming legalization. Matt Scalf, a senior manager for government affairs, said that his company already operates iGaming in five states, and that his company enables participants to set their own deposit limits and time limits for iGaming - as well as offering an option to self-exclude from the gambling altogether.
More than 50% of their users take advantage of their responsible gambling tools, said Scalf.
Robert O'Connor, an executive for another major sportsbook company, pointed to his company's commercial that features NHL star Connor McDavid advocating for his fans to utilize such safeguards.
Scalf said a promotion last year that offered gamblers a chance to win free Super Bowl tickets by opting in on at least one responsible gambling tool proved to be very popular.
Scalf and O'Connor, as well as gambling industry consultant John Pappas and Michelle McGregor, a representative for the Sports Betting Alliance, all joined in advocating for sufficient resources to address responsible gambling initiatives.
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Committee chairman Matt Frumin spoke about a challenge in setting parameters for iGaming legalization, pointing out that the stricter the regulations, the more they may inadvertently encourage gamblers to pivot to illegal offshore sites.
A larger discussion developed about the extent to which legalization shifts already-active players to regulated, consumer-protected sites versus simply creating a new wave of problem gamblers who weren't previously even aware of such an option.
Bernal called the American Gaming Association's lobbying efforts to crack down on illegal offshore gambling websites "a phony [public relations] narrative."
Another topic of the hearing was the existence of sweepstakes casino sites, which currently operate in a "gray area" of being neither authorized nor banned by the district.
A sweepstakes casino executive stressed that more than half of players never deposited any money at all, while some did make deposits to increase their permitted level of activity.
Felder's bill would make sweepstakes casino play illegal in the district, however.
Randy Burnside, the executive director of the D.C. Lottery, said that while online casino legalization would have some negative impact on the district's online lottery revenue, "I have no doubt that iGaming would more than make up for it, in terms of additional revenue for the district on an annual basis."
Competition from nearby locations is in play for D.C.
The debate over iGaming legalization in the district is intensified by the fact that lawmakers in neighboring Maryland and Virginia already have been in talks to legalize the new form of gambling.
The northern and eastern U.S. states have proven to be the most accepting of online gambling legalization. New Jersey and Delaware launched iGaming back in 2013, and they were followed by several other states, such as Connecticut and Rhode Island.
Maine will launch later in 2026 as the eighth iGaming state, and it appears as if one or more of the mid-Atlantic locations of the district, Maryland, and Virginia will follow suit at some point.
Online casino revenue would be taxed at 25% under Felder's bill, with a $2 million licensing fee and annual renewal payment of $500,000. All of the major national iGaming operators are expected to be interested - especially if D.C. approves the gambling before their neighbors do.
