Internet Gaming and Consumer Protection Act of 2026

COUNCIL OF THE DISTRICT OF COLUMBIA
THE JOHN A. WILSON BUILDING
1350 PENNSLYV ANIA A VENUE, NW, SUITE 406
WASHINGTON, DC 20004
202.724.8068

WENDELL FELDER Chairperson
Ward 7 Councilmember Subcommittee on Local Business
Development

April 9, 2026
Nyasha Smith, Secretary
Council of the District of Columbia
1350 Pennsylvania Avenue, N.W.
Washington, DC 20004

Dear Secretary Smith,

Today, I am introducing the “Internet Gaming and Consumer Protection Act of 2026” to
authorize, regulate, and tax internet gaming (“iGaming”) in the District of Columbia. This bill
reflects a practical, data-informed approach to strengthening consumer protections, modernizing
our gaming framework, and capturing revenue that is currently flowing outside of the District’s
oversight.

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.

The scope of this activity is significant. National estimates indicate that Americans wager
hundreds of billions of dollars annually through unlicensed online gaming platforms, with
billions in associated revenue occurring outside of regulated systems. 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.

Several states have already taken action. A small but growing number of states such as New
Jersey, Pennsylvania, and Michigan, have established regulated iGaming markets that
collectively generate billions of dollars in annual gross gaming revenue and significant tax
revenue for public purposes. Additional states are actively considering similar legislation.

For the District, the potential fiscal impact is meaningful. Based on comparable markets and
conservative projections, legalizing iGaming could generate substantial new tax revenue over
time, alongside upfront licensing fees. Initial annual tax revenue could reach tens of millions of
dollars, with growth expected as the market matures. These funds could support critical
priorities, including behavioral health services, responsible gaming programs, and broader
community investments.

Equally important, legalization strengthens consumer protections. Regulated iGaming markets
require operators to implement robust safeguards, including identity and age verification, anti-
money laundering compliance, geolocation controls, and responsible gaming tools such as
deposit limits, time limits, and self-exclusion programs. Evidence from other jurisdictions
indicates that legalization shifts a significant share of users from unregulated platforms to
regulated ones, improving transparency and accountability.

This legislation is designed to reflect those best practices. It establishes regulatory oversight
under the Office of Lottery and Gaming, sets a minimum age of 21, imposes a tax on adjusted
gross gaming revenue, and dedicates funding to administration, problem gambling prevention,
and community reinvestment. It also includes enforcement provisions to address illegal operators
and ensure compliance.

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. By advancing this legislation, we can bring an
existing market into a regulated environment that prioritizes safety, accountability, and public
benefit.

Should you have any questions about this legislation, please contact my Dr. Delia Houseal at
dhouseal@dccouncil.gov.

Thank you,

Wendell Felder
Ward 7 Councilmember

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Councilmember Wendell Felder 3
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A BILL 8
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 12
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To amend the Law to Legalize Lotteries, Daily Numbers Games, and Bingo and Raffles for 17
Charitable Purposes in the District of Columbia to add a new Title V authorizing and 18
regulating internet gaming in the District of Columbia, to establish a comprehensive 19
licensing, consumer protection, responsible gaming, taxation, reporting, and enforcement 20
framework administered by the Office of Lottery and Gaming, to require Certified 21
Business Enterprise participation plans for internet gaming operators; to establish a 22
Community Reinvestment Fund, to prohibit unlicensed sweepstakes gaming and similar 23
dual-currency gaming products; and to make conforming and administrative provisions 24
necessary to implement internet gaming in the District. 25
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 26
act may be cited as the “Internet Gaming and Consumer Protection Act of 2026”. 27
Sec. 2. The Law to Legalize Lotteries, Daily Numbers Games, and Bingo and Raffles for 28
Charitable Purposes in the District of Columbia, effective March 10, 1981 (D.C. Law 3-172; 29
D.C. Official Code § 3-1301 passim), is amended as follows: 30
(a) Title I (D.C. Official Code §§ 22-1716 through 22-1718) is amended as 31
follows: 32
(1) Section 3 (D.C. Official Code § 22-1716) is amended by adding a new 33
subsection (d) to read as follows: 34
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“(d) This section shall not apply to internet gaming conducted pursuant to Title V of The 35
Law to Legalize Lotteries, Daily Numbers Games, and Bingo and Raffles for Charitable 36
Purposes in the District of Columbia, effective March 10, 1981 (D.C. Law 3-172; D.C. Official 37
Code § 3-1301 passim), or to any activity authorized thereunder and conducted in accordance 38
with that title and rules issued pursuant to that title.”. 39
(2) Section 3 (D.C. Official Code § 22-1717) is amended by adding a new 40
subsection (e) to read as follows: 41
“(e) The prohibitions set forth in this section shall not apply to internet gaming conducted 42
pursuant to Title V of The Law to Legalize Lotteries, Daily Numbers Games, and Bingo and 43
Raffles for Charitable Purposes in the District of Columbia, effective March 10, 1981 (D.C. 44
Law 3-172; D.C. Official Code § 3-1301 passim).”. 45
(b) A new Title V is added to read as follows: 46
“Title V. Internet Gaming. 47
“Sec. 501 Definitions. 48
(a) For the purpose of this Title, the term: 49
“(1) "Adjusted gross internet gaming revenue" means gross internet gaming 50
revenue less: 51
(A) all sums actually paid out as winnings to patrons, including the cash 52
equivalent of any merchandise or thing of value awarded as a prize; and 53
(B) the amount of cancelled, voided, or refunded wagers. 54
“(2) "Certified Business Enterprise" or "CBE" shall have the meaning set forth in 55
section 2302(1D) of the Small, Local, and Disadvantaged Business Enterprise Development and 56
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Assistance Act of 2005, effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code § 2-57
218.02(1D)). 58
“(3) "CBE plan" means a plan submitted to the Department of Small and Local 59
Business Development demonstrating compliance with the CBE participation requirements of 60
this title. 61
“(4) "Chief Financial Officer" or "CFO" means the Chief Financial Officer of the 62
District of Columbia, or the CFO's designee acting through the Office of Lottery and Gaming. 63
“(5) "Community Reinvestment Fund" means the fund established by section 517. 64
“(6) "Dual-currency gaming product" means a game, promotional scheme, or 65
platform that uses 2 or more forms of currency, credits, tokens, entries, points, or similar units, 66
whether purchased or awarded, where one or more such units may be redeemed, converted, 67
transferred, or used directly or indirectly for cash, cash equivalents, prizes, or prize equivalents. 68
“(7) "Gross internet gaming revenue" means the total amount of money and cash 69
equivalents wagered by patrons on internet games; provided, that promotional gaming credits 70
shall not be treated as wagers unless required by rule for accounting or auditing purposes. 71
“(8) "Internet game" means a casino-style game conducted through an internet 72
gaming platform in which a patron wagers money or something of value for the opportunity to 73
win money, a prize, or a prize equivalent, including poker, slots, blackjack, roulette, baccarat, 74
craps, video poker, live-dealer games, peer-to-peer games, and any other game approved by the 75
Office of Lottery and Gaming by rule. 76
“(9) "Internet gaming" means the offering, conducting, or operation of an internet 77
game through an internet gaming platform. 78
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“(10) "Internet gaming account" means an account established in the name of an 79
individual patron for the purpose of participating in internet gaming, and includes a shared wallet 80
approved by the Office of Lottery and Gaming. 81
“(11) "Internet gaming operator" or "operator" means a person licensed by the 82
Office of Lottery and Gaming under this title to offer internet gaming. 83
“(12) "Internet gaming platform" means a website, mobile application, or other 84
interactive platform accessible through the internet, wireless, mobile, or similar communications 85
technology that a patron may use to participate in internet gaming. 86
“(13) "Internet gaming supplier" or "supplier" means a person that provides 87
internet gaming software, game content, geolocation services, age or identity verification 88
services, payment processing, live-dealer studio services, or other goods or services specifically 89
designed for internet gaming, as determined by rule. 90
“(14) "Key person" means an officer, director, partner, manager, principal 91
employee, significant owner, or other person designated by the Office of Lottery and Gaming 92
who exercises substantial influence over the management, control, compliance, or finances of an 93
applicant or licensee. 94
“(15) "Office" or “OLG” means the Office of Lottery and Gaming, established 95
within the Office of the Chief Financial Officer. 96
“(16) "Patron" means an individual who has established or attempted to establish 97
an internet gaming account. 98
“(17) "Permissible jurisdiction" means a state, territory, tribal jurisdiction, or 99
other lawful jurisdiction with which the District has entered into a reciprocal agreement for 100
internet gaming. 101
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“(18) "Prize equivalent" means cash, a cash equivalent, merchandise, gift cards, 102
digital assets redeemable for value, or any other item or thing of economic value. 103
“(19) “Promotional gaming credit” means a non-withdrawable credit provided by 104
an operator to a patron for wagering purposes only, which shall not be redeemable for cash 105
unless and until wagering requirements established by rule are satisfied. 106
“(20) "Shared wallet" means a wallet or account system approved by the OLG 107
that allows a patron to use one account or wallet for internet gaming, sports wagering, or both, 108
subject to adequate controls. 109
“(21) "Sweepstakes gaming" means a game, promotional contest, or scheme, 110
whether offered online or in person, in which a person provides money, consideration, or 111
something of value, directly or indirectly, for the opportunity to participate in a casino-style 112
game, a simulated casino-style game, a sports wagering-like game, or a lottery-like game and 113
win a prize or prize equivalent, including through a dual-currency gaming product.”. 114
“Sec. 502. Authorization of internet gaming. 115
“(a) Notwithstanding any other provision of law, internet gaming conducted in 116
accordance with this title and rules issued under this title shall not be unlawful in the District. 117
“(b) An operator may offer internet gaming only through an internet gaming account and 118
only when the patron is physically located in the District or in a permissible jurisdiction and the 119
wager is otherwise lawful. 120
“(c) Internet gaming authorized by this title shall not include: 121
(1) Lottery games regulated under Title II of the Law to Legalize Lotteries, Daily 122
Numbers Games, and Bingo and Raffles for Charitable Purposes in the District of Columbia, 123
effective March 10, 1981 (D.C. Law 3-172; D.C. Official Code § 36-601.01 et seq.); 124
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(2) Sports wagering regulated under Title III of the Law to Legalize Lotteries, 125
Daily Numbers Games, and Bingo and Raffles for Charitable Purposes in the District of 126
Columbia, effective March 10, 1981 (D.C. Law 3-172; D.C. Official Code § 36-621.01 et seq.); 127
or 128
(3) Game of skills machines regulated under Title IV of the Law to Legalize 129
Lotteries, Daily Numbers Games, and Bingo and Raffles for Charitable Purposes in the District 130
of Columbia, effective March 10, 1981 (D.C. Law 3-172; D.C. Official Code § 36-641.01 et 131
seq.). 132
“(d) An operator may offer internet gaming under no more than 2internet gaming brands 133
approved by the OLG, including live-dealer games and peer-to-peer games, subject to rules 134
issued under this title. 135
“(e) Nothing in this title shall be construed to authorize the OLG to establish mandatory 136
minimum or maximum payout percentages, except as necessary to prohibit deceptive practices or 137
protect game integrity.”. 138
“Sec. 503. Rules and regulations governing conduct of internet gaming. 139
“(a) To ensure fair and honest play in internet gaming and to protect the economic 140
welfare and interests of the District and participants in internet gaming, the CFO shall adopt the 141
following rules governing the conduct of internet gaming under this title. 142
“(1) Acceptance of wagers on approved internet games; 143
“(2) Methods of age verification and identity verification; 144
“(3) Location verification requirements; 145
“(4) Posting of house rules, terms, and conditions; 146
“(5) Player exclusion requirements and responsible gaming requirements; 147
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“(6) Types of records to be maintained by licensees; 148
“(7) Data security, cybersecurity, testing, and certification standards; 149
“(8) Permitted payment methods and controls on deposits and withdrawals; 150
“(9) Advertising and promotional standards, including specific protections 151
relating to minors and misleading promotions; 152
“(10) Technical standards for internet gaming systems, shared wallets, and live-153
dealer studios; 154
“(11) Requirements relating to how fees and taxes shall be remitted; 155
“(12) Complaint handling procedures, reporting requirements, and any other 156
matter necessary to implement this title. 157
“(b) The OLG may adopt emergency rules to implement this title. 158
“(c) The OLG may recognize testing, certification, or suitability determinations from 159
another jurisdiction, but no person or platform shall be deemed authorized to operate in the 160
District without District approval.”. 161
“Sec. 504. Licenses required; classes of license; general prohibition. 162
“(a) Except as provided in a reciprocal agreement approved under section 514, no 163
individual, group of individuals, or entity may engage in an activity connected with internet 164
gaming in the District unless all licenses required by this title or by rules issued pursuant to this 165
title have been duly obtained. 166
“(b) The OLG shall issue the following licenses under this title: 167
“(1) Operator; 168
“(2) Supplier; and 169
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“(3) Any occupational or other license category the OLG determines necessary by 170
rule to protect the public interest. 171
“(c) The OLG shall not grant a license until the OLG has determined that each individual 172
or entity that controls the applicant has been approved for licensure or otherwise determined 173
suitable under this title. 174
“(d) No employee of the Office may be an applicant for or obtain a license issued under 175
this title.”. 176
“Sec. 505. Operator licensure. 177
“(a) The OLG shall issue an operator license to each applicant that the OLG finds 178
qualified under this title. The OLG shall not impose a numerical cap on the number of operator 179
licenses. 180
“(b) The application fee for an operator license shall be $2,000,000. All application fees 181
submitted to this section shall be non-refundable, regardless of whether the application is 182
approved or denied. 183
“(c) An operator license shall be valid for 5 years unless suspended, revoked, 184
surrendered, or otherwise terminated. 185
“(d) The renewal fee for an operator license shall be $500,000 for each 5-year renewal 186
term. 187
“(e) Possession of a sports wagering operator license or any other gaming license shall 188
entitle an applicant to an expedited review and approval under this title; provided, that the OLG 189
may rely on prior background investigations or licensure history to streamline review where 190
appropriate. 191
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“(f)(1) An operator license shall authorize the operation of not more than 2 internet 192
gaming brands and platforms, subject to such conditions as the OLG may impose. 193
“(2) The OLG may authorize an operator to operate more than 2 internet gaming 194
brands upon a showing of good cause, including demonstrated compliance capacity and market 195
need, provided that such approval is consistent with public interest. 196
“(g) An operator license may not be transferred or assigned except with prior written 197
approval of the OLG.”. 198
“Sec. 506. Supplier licensure. 199
“(a) A person shall not provide internet gaming goods or services specifically designed 200
for internet gaming to an operator in the District without a supplier license, unless exempted by 201
rule because the goods or services are not gaming-specific or do not implicate game integrity or 202
patron protection. 203
“(b) The application fee for a supplier license shall be $50,000. All application fees 204
submitted to this section shall be non-refundable, regardless of whether the application is 205
approved or denied. 206
“(c) A supplier license shall be valid for 5 years unless suspended, revoked, surrendered, 207
or otherwise terminated. 208
“(d) The renewal fee for a supplier license shall be $25,000 for each 5-year renewal term. 209
“(e) The OLG may recognize substantially similar supplier licensure from another 210
jurisdiction and may streamline review where appropriate; provided, that no supplier shall be 211
deemed licensed in the District without District approval. 212
“(f) An operator shall be deemed licensed as a supplier only for in-house goods or 213
services it provides to itself or an approved affiliate, subject to conditions imposed by the OLG.”. 214
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“Sec. 507. Applications; suitability; key persons. 215
“(a) An applicant for an operator or supplier license shall submit an application in the 216
form prescribed by the OLG and shall provide such information as the OLG requires, including 217
information concerning key persons, significant owners, affiliates, financing sources, and 218
business operations. 219
“(b) An applicant and each key person shall be subject to District, state, and national 220
criminal history background checks and shall provide fingerprints, signed authorizations, 221
financial disclosures, and any other information required by the OLG. 222
“(c) In determining suitability, the OLG shall consider the integrity, financial 223
responsibility, business ability, compliance history, and character of the applicant and key 224
persons, including any criminal history, civil fraud, regulatory discipline, or other conduct 225
indicating a risk to the public interest. 226
“(d) The OLG may deny, condition, suspend, revoke, or refuse to renew a license for lack 227
of suitability or for any reason that would constitute grounds for discipline under this title. 228
“(e) An operator or supplier shall notify the OLG in writing within 10 days of any 229
material change in ownership, control, key personnel, financial condition, or information 230
previously submitted in support of an application. 231
“(f) A person acquiring a direct or indirect ownership or control interest that the OLG 232
determines to be material shall obtain prior written approval of the OLG.”. 233
“Sec. 508. Certified Business Enterprise participation plan requirement. 234
“(a) The OLG shall issue an operator license only if the applicant, in conjunction with its 235
application, submits to the Department of Small and Local Business Development (“DSLBD”) 236
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for approval a CBE plan demonstrating that at least 35% of the applicant's District-related 237
operating budget for internet gaming will be contracted with one or more CBEs. 238
“(b) The CBE plan shall include: 239
“(1) The name and address of each proposed contractor; 240
“(2) Current certification documentation for each CBE; 241
“(3) The scope of work to be performed by each contractor, which shall be for a 242
commercially useful function related to internet gaming; 243
“(4) The dollar value or percentage of work to be performed by each contractor; and 244
“(5) Any other information required by DSLBD or the OLG. 245
“(c) An applicant may satisfy subsection (a) of this section by entering into a joint 246
venture with a CBE if approved by DSLBD and the OLG. 247
“(d) An applicant may request a waiver from DSLBD of the contracting or joint venture 248
requirements of subsection (a) of this section; provided, that if DSLBD neither approves nor 249
denies the request within 30 days after submission, the waiver shall be deemed approved as a 250
matter of law. 251
“(e) An operator shall file semiannual compliance reports with the OLG and DSLBD 252
describing its performance under its approved CBE plan. Failure to make good-faith efforts to 253
comply with an approved plan may constitute grounds for civil penalties, corrective action, or 254
license discipline.”. 255
“Sec. 509. Patron accounts; age, identity, and geolocation. 256
“(a) A person shall be at least 21 years of age to establish an internet gaming account, 257
place an internet gaming wager, or otherwise participate in internet gaming under this title. 258
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“(b) An operator shall not permit a patron to place a wager until the patron's age and 259
identity have been verified to the satisfaction of the operator and the OLG's technical standards. 260
“(c) A patron may establish an internet gaming account remotely from within the District, 261
subject to age verification, identity verification, and any other requirements of this title. 262
“(d) A patron account shall be established only in the name of a natural person, shall be 263
nontransferable, and may not be sold, assigned, or used by any person other than the registered 264
patron. 265
“(e) A patron shall not have more than one account with the same internet gaming brand 266
unless otherwise approved by the OLG. 267
“(f) An operator shall provide timely and secure means for deposits and withdrawals 268
through payment methods approved by the OLG. 269
“(g) An operator shall suspend or close an account if the operator knows or reasonably 270
should know that the account holder is underage, is prohibited from gaming, has provided 271
materially false information, or is engaged in fraud, collusion, cheating, or other unlawful 272
activity.”. 273
“Sec. 510. Duties of operators. 274
“(a) An operator shall use commercially reasonable methods and any methods required 275
by rule to: 276
“(1) Verify the age and identity of each patron; 277
“(2) Verify the physical location of each patron at the time each wager is initiated 278
and accepted; 279
“(3) Prevent underage play, unauthorized access, collusion, cheating, bots, 280
account fraud, and proxy wagering; 281
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“(4) Protect the confidentiality and security of patron information, wagering data, 282
and account data; 283
“(5) Maintain accurate books and records; 284
“(6) Detect suspicious activity and report it as required by rule; 285
“(7) Provide clear house rules, patron terms and conditions, privacy disclosures, 286
and complaint procedures; 287
“(8) Maintain customer support reasonably sufficient to serve patrons in the 288
District; and 289
“(9) Comply with responsible gaming requirements under this title. 290
“(b) An operator shall maintain sufficient reserves, in a form approved by the OLG, to 291
cover patron account balances, unpaid winnings, and outstanding wager liabilities. The OLG 292
may require a reserve of not less than $500,000 or a greater amount necessary to protect patrons 293
and the District. 294
“(c) Patron funds shall be held in trust or in one or more segregated accounts separate 295
from operational funds, or by another method approved by the OLG that provides equivalent or 296
greater protection to patrons. 297
“(d) An operator may permit a shared wallet with sports wagering only if approved by the 298
OLG and subject to controls sufficient to distinguish liabilities, tax reporting, and patron 299
protections across product categories. 300
“(e)(1) An operator shall be prohibited from creating an internet wagering account or 301
placing an internet wager through its own applications and shall employ reasonable methods to 302
prohibit: 303
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“(A) A director, officer, owner, or employee of the operator, and any 304
living relative living in the same household as the aforementioned individuals from creating an 305
internet wagering account or placing an internet wager with the operator; 306
“(B) An individual, group of individuals, or entity with access to non-307
public confidential information held by the operator from creating an internet wagering account 308
or placing an internet wager with the operator; or 309
“(C) An individual, group of individuals, or entity from creating an 310
internet wagering account or placing a wager as an agent or proxy for others. 311
“(2) In determining which individual, group of individuals, or entity is to be 312
excluding from creating an internet wagering account or placing an internet wager pursuant to 313
paragraph (1) of this subsection, an operator shall use publicly available information and any 314
lists of such individuals, group of individuals or entities that operator develops. 315
“(f)(1) An operator shall implement controls to verify that payment methods used to fund 316
a patron account are owned by, or lawfully authorized by, the patron. 317
“(2) An operator shall identify and flag discrepancies between the patron identify 318
and the source of funds. 319
“(3) Where an operator has reason to believe that a patron is using funds provided 320
by a third party without authorization, the operator shall: 321
“(A) Suspend the account pending investigation; and 322
“(B) Report such activity to OLG. 323
“(4) The OLG may establish additional requirements relating to third-324
party funding and financial harm prevention.”. 325
“Sec. 511. Responsible gaming; voluntary exclusion. 326
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“(a) Each operator shall provide, at a minimum, the following responsible gaming tools 327
to each patron through the internet gaming platform: 328
“(1) Deposit limits that may be set on a daily, weekly, and monthly basis; 329
“(2) Spend or loss limits that may be set on a daily, weekly, and monthly basis; 330
“(3) Session or time limits, including a daily time-based limit; 331
“(4) Cooling-off periods or temporary suspensions of not less than 72 hours; 332
“(5) Self-exclusion and account closure options consistent with OLG rules; 333
“(6) Real-time or near-real-time access to account history, including deposits, 334
withdrawals, wagers, wins, losses, and time spent on the platform; 335
“(7) Periodic reminders of time spent and net activity during a session; and 336
“(8) Procedures to evaluate requests made by third parties to exclude an 337
individual from internet gaming, including requests to exclude an individual from placing sports 338
wagers when the requestor provides documentary evidence of sole joint financial responsibility 339
for the source of funds deposited with an operator by the individual.“(b) A decrease in a patron-340
imposed limit shall take effect as soon as practicable and not later than the patron's next login. 341
An increase in a limit shall take effect only after a cooling-off period established by rule. 342
“(c) The OLG shall establish and maintain a voluntary exclusion program for internet 343
gaming or shall incorporate internet gaming into an existing Office exclusion program. 344
“(d) The voluntary exclusion program shall provide procedures for verification of an 345
exclusion request, the duration of exclusion, petitions for removal where appropriate, 346
dissemination of exclusion information to operators, and cessation of direct marketing to 347
excluded individuals. 348
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“(e) Information identifying a person on the voluntary exclusion list shall be confidential 349
except as necessary to administer the program, comply with law, or effectuate exclusion across 350
affiliated lawful gaming operations as permitted by rule. 351
“(f) Each operator shall train relevant employees on responsible gaming, underage 352
gaming prevention, and escalation procedures and shall submit an annual responsible gaming 353
report to the OLG. 354
“(g) An operator shall establish default deposit and loss limits for new patron accounts, 355
which may be modified by the patron following acknowledgment of responsible gaming 356
information. 357
“(h) The OLG may establish maximum limits or other safeguards for high-risk patrons 358
based on data-driven indicators of harmful play.”. 359
“Sec. 512. Advertising, marketing, and promotional standards. 360
“(a) Advertising and marketing relating to internet gaming shall be truthful, not 361
misleading to a reasonable consumer, and consistent with this title and rules issued by the OLG. 362
“(b) Advertising and marketing shall not intentionally target persons under 21 years of 363
age or other prohibited persons. 364
“(c) Advertising and marketing shall include responsible gaming messaging and 365
information about how to access help resources, in a manner prescribed by rule. 366
“(d) Promotional offers, bonuses, credits, and incentives shall be disclosed clearly and 367
conspicuously, including material restrictions, play-through or rollover requirements, expiration 368
periods, and withdrawal conditions. 369
“(e) The OLG may prohibit or restrict advertising or promotional practices that the OLG 370
finds unfair, deceptive, predatory, or contrary to the public interest. 371
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“(f)(1) An operator shall not deduct the value of promotional gaming credits from 372
adjusted gross internet gaming revenue except as expressly authorized by this section. 373
“(2) Beginning on the first day of the third year after initial licensure, the total 374
value of promotional gaming credits deducted by an operator in any fiscal year shall not exceed 375
1.75% of the operator’s adjusted gross internet gaming revenue for that fiscal year. 376
“(3) The Office may authorize a higher temporary cap for a period not to exceed 377
12 months following initial licensure to support market entry. 378
“(4) Promotional gaming credits shall not be: 379
“(A) Transferrable between patrons; 380
“(B) Redeemable for cash absent wagering requirements; or 381
“(C) Structured to evade the limitations of this subsection.”. 382
“Sec. 513. Technology standards; cybersecurity; records; regulatory access. 383
“(a) An operator and supplier shall implement and maintain information security and 384
cybersecurity controls reasonably designed to protect patron data, wagering data, and critical 385
systems. 386
“(b) The OLG may require compliance with industry-recognized cybersecurity and 387
information security frameworks, including multi-factor authentication, encryption, logging, 388
access controls, incident response, vendor oversight, and periodic testing. 389
“(c) All primary systems necessary to the placement or resolution of internet gaming 390
wagers shall be located in the United States unless the OLG approves otherwise for good cause 391
and subject to conditions necessary to protect the public interest and regulatory access. 392
“(d) An operator shall use OLG-approved geolocation methods and age and identity 393
verification methods. 394
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“(e) An operator and supplier shall maintain records of each wager, transaction, 395
adjustment, login, withdrawal, deposit, geolocation decision, promotional gaming credit, and 396
suspicious activity report for a period specified by the OLG, which shall not be less than 3 years. 397
“(f) The OLG shall have access, directly or indirectly, to the data, records, reports, and 398
systems necessary to administer and enforce this title. 399
“(g) The OLG may require independent testing and certification of games, platforms, 400
systems, random number generators, geolocation systems, and any other components relevant to 401
integrity and compliance.”. 402
“Sec. 514. Reciprocal agreements. 403
“(a) The Executive or the Council may enter into reciprocal agreements with permissible 404
jurisdictions for the conduct of lawful internet gaming, including pooled liquidity and interstate 405
or interjurisdictional internet poker, to the extent authorized by federal law. 406
“(b) A reciprocal agreement may permit: 407
(1) persons physically located in a permissible jurisdiction to place wagers with 408
an operator licensed in the District; and 409
(2) persons physically located in the District to place wagers with a person 410
licensed in a permissible jurisdiction, subject to the terms of the agreement and applicable law. 411
“(c) The Executive or the Council may require that reciprocal agreements include 412
provisions addressing enforcement, revenue allocation, regulatory access, responsible gaming, 413
anti-money laundering cooperation, dispute resolution, and any other protections the OLG deems 414
necessary.”. 415
“Sec. 515. Taxation of internet gaming. 416
“(a) On or before the 20th day of each month, an operator shall: 417
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“(1) File a return, on forms and in the manner prescribed by the OLG, indicating 418
the amount of its adjusted gross internet gaming revenue for the preceding calendar month; and 419
“(2) Pay to the District of Columbia Treasurer an amount equal to 25% of the 420
operator’s adjusted gross internet gaming revenue for the preceding calendar month. 421
(2)(A) From the tax revenue collected pursuant to subsection (a)(2) of this 422
section: 423
(i) The first $500,000 shall be transferred to the Department of Behavioral 424
Health, or to such District agency or agencies as may be designated by law, for prevention, 425
education, treatment, referral, and recovery services related to gambling addiction and related 426
behavioral health needs. 427
“(b) If adjusted gross internet gaming revenue is negative for a month, the operator may 428
carry the negative amount forward against subsequent months for not more than 6 months after 429
the month in which the negative amount occurred. 430
“(c) All funds owed to the District under this title shall be held in trust within the 431
boundaries of the District for the District by an operator until the funds are paid to the District of 432
Columbia Treasurer. An operator shall establish one or more separate bank accounts into which 433
internet gaming revenue shall be deposited and maintained until such time as the funds are paid 434
to the District. 435
“(d) The OLG may allow credits or refunds for refunded or cancelled wagers in a manner 436
prescribed by rule. 437
“(e) An operator shall maintain records sufficient to substantiate all figures reported on 438
tax returns filed under this section and shall make such records available to the OLG upon 439
request.”. 440
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“Sec. 516. License fees and administrative costs. 441
“(a) License fees collected under this title shall be deposited into the General Fund of the 442
District of Columbia. 443
“(b) The administrative and operational cost of the Office of Lottery and Gaming to 444
implement the provisions shall be funded through appropriations. 445
“(c) Any annual tax revenue remaining collected pursuant to section 515, after the 446
allocations required by this title shall be deposited into the General Fund of the District of 447
Columbia.”. 448
“Sec. 517. Regulatory assessment for administration 449
“(a) Each licensed operator shall remit to the District a regulatory assessment equal to 2% 450
of the operator’s adjusted gross internet gaming revenue. 451
“(b) Amounts collected pursuant to this section shall be deposited into a dedicated 452
account within the General Fund and shall be used solely for the administration, regulation, and 453
enforcement of this title by the Office of Lottery and Gaming. 454
“(c) The regulatory assessment imposed under this section shall not be considered a tax. 455
“(d) The assessment shall be reasonably related to the costs of regulating internet gaming 456
in the District. 457
“(e) Any amounts collected in excess of the reasonable costs of administration shall 458
revert to the General Fund at the end of the fiscal year.”. 459
“Sec. 518. iGaming Community Reinvestment Fund. 460
“(a) There is established as a special fund the iGaming Community Reinvestment Fund 461
(“Fund”), which shall be administered by the Chief Financial Officer, or to such District agency 462
or agencies as may be designated by law, in accordance with this section. 463
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“(b) Each licensed operator shall remit to the District a community impact assessment in 464
an amount equal to 2% of the operator’s adjusted gross internet gaming revenue. 465
“(c) Amounts collected pursuant to this subsection shall be deposited into the Fund and 466
shall not be considered part of the tax imposed under section 515. 467
“(d)(1) Money in the Fund shall be used, subject to authorization in an approved budget 468
and financial plan, solely for programs, services, and initiatives designed to mitigate the social 469
and economic impacts of internet gaming. 470
“(2) The Chief Financial Officer shall transfer money from the Fund, as provided 471
in an approved budget and financial plan, to the following agencies for the following purposes: 472
“(A) 30% to the Department of Insurance, Securities, and Banking, for 473
Debt management, financial counseling, consumer financial protection, and financial literacy 474
programs and services; 475
“(B) 30% to the Office of Victim Services and Justice Grants, for 476
domestic violence, intimate partner violence, survivor services, and family stability programs; 477
“(C) 10% to the Department of Health, for research and evaluation 478
services on gambling behavior and gambling addiction; 479
“(D) 30% to the Department of Employment Services, for youth 480
development, and training programs related to artificial intelligence, gaming, coding and 481
software development, and related technology fields. 482
“(e) The money deposited into the Fund, and any interest earned thereon, shall not revert 483
to the unrestricted fund balance of the General Fund of the District of Columbia at the end of a 484
fiscal year, or at any other time. 485
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“(f)(1) Not later than 120 days after the end of each fiscal year, the recipient agencies, in 486
coordination with the Chief Financial Officer and Office of Lottery and Gaming, shall submit to 487
the Council and publish on a publicly accessible website a report on the Fund. 488
“(2) The report shall include: 489
“(A) Total amounts collected and expended; 490
“(B) Programmatic uses of funds by agency; 491
“(C) Outcomes and performance metrics, where available; and 492
“(D) An assessment of the extent to which funded programs mitigate the 493
impacts of internet gaming. 494
“(g) The fund shall supplement, and not supplant, existing funding for the purposes 495
described in this section. 496
“(h) The Fund shall be accounted for as a special fund in accordance with section § 47-497
131 of the District of Columbia Official Code.”. 498
“Sec. 519. Reporting; confidentiality; public records. 499
“(a) Not later than 120 days after the end of each fiscal year, the OLG shall submit to the 500
Council and publish on the Office's website an annual report on internet gaming in the District. 501
“(b) The annual report shall include, at a minimum: 502
“(1) The number of licensed operators and suppliers; 503
“(2) Aggregate internet gaming revenue, tax collections, and license fee 504
collections; 505
“(3) Amounts directed to behavioral health purposes and to the Community 506
Reinvestment Fund; 507
“(4) Enforcement actions taken under this title; 508
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“(5) Complaint trends and dispute-resolution information, in aggregate form; 509
“(6) Data on voluntary exclusions and the use of responsible gaming tools, in 510
aggregate form consistent with privacy protections; and 511
“(7) Operator compliance with CBE plans and local participation commitments. 512
“(c) The following application-related information shall be public records unless 513
otherwise protected by law: the name and principal business address of an applicant or licensee; 514
the names of key persons; the internet gaming brands proposed or approved; and the grant, 515
denial, suspension, revocation, or nonrenewal of a license. 516
“(d) Investigative files, security protocols, patron-identifying information, trade secrets, 517
and confidential commercial or financial information submitted to the OLG shall be protected 518
from disclosure to the extent permitted by District law. 519
“(e) Nothing in this section shall prevent the OLG from sharing information with law 520
enforcement, regulatory agencies, the Department of Small and Local Business Development, 521
the Attorney General for the District of Columbia, or other governmental entities as authorized 522
by law.”. 523
“Sec. 520. Enforcement; unlawful acts; sweepstakes gaming prohibition. 524
“(a) If the OLG determines, after notice and an opportunity for hearing, that a licensee 525
has violated this title, a rule or order of the OLG, or a condition of licensure, the OLG may: 526
“(1) Issue a reprimand or corrective action order; 527
“(2) Impose a civil fine of not more than $100,000 for each violation; 528
“(3) Impose a civil fine of not more than $500,000 for violations arising out of the 529
same transaction, occurrence, pattern, or practice, where the OLG finds such aggregation 530
appropriate; 531
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(4) Suspend, revoke, condition, or refuse to renew a license; and 532
(5) Require restitution or other remedial measures where authorized by law. 533
“(b) The OLG may issue cease and desist orders to persons engaged in unlicensed 534
internet gaming, unlawful sweepstakes gaming, or other conduct prohibited by this title and may 535
seek injunctive relief and any other appropriate remedy in a court of competent jurisdiction. 536
“(c) Except as conducted by a licensed operator under this title or otherwise expressly 537
authorized by District law, a person shall not offer, promote, or conduct sweepstakes gaming, a 538
dual-currency gaming product, or any other product that mimics or simulates casino-style 539
gaming, sports wagering, lottery-style gaming, or a substantially similar gambling activity where 540
a person provides consideration or something of value for the opportunity to win a prize or prize 541
equivalent. 542
“(d) For purposes of subsection (c) of this section, consideration may be direct or indirect 543
and includes the purchase of credits, tokens, entries, subscriptions, access, or any similar item or 544
service that is part of the ability to participate or continue participating. 545
“(e) Each day of a violation of subsection (c) of this section shall constitute a separate 546
violation. 547
“(f) The remedies in this section are cumulative and not exclusive and do not limit any 548
authority otherwise available under District law. 549
“(g) The Attorney General for the District of Columbia may bring a civil action in a court 550
of competent jurisdiction to enforce this title, including actions for injunctive relief, civil 551
penalties, restitution, and disgorgement.”. 552
“Sec. 521. Implementation. 553
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“(a) The CFO shall issue proposed and, as appropriate, emergency rules to implement 554
this title not later than 90 days after the effective date of this act. 555
“(b) The CFO shall establish an application process not later than 30 days after the 556
effective date of this act. 557
“(c) Internet gaming shall not commence until the CFO certifies that the regulatory 558
framework, technical standards, and integrity controls necessary to protect the public and the 559
District are in place. 560
“(d) The CFO shall authorize the launch of internet gaming as soon as practicable, but not 561
later than 180 days after the effective date of this act, unless the Mayor transmits to the Council a 562
written determination that additional time is required to ensure public protection, regulatory 563
readiness, or system integrity.”. 564
“Sec. 522. Conflict with federal law. 565
“Nothing in this title shall be construed to authorize noncompliance with any provision of 566
any federal law or regulation. Notwithstanding any provision in this title, no internet wagering, 567
or gambling in any form, or the operation of gambling devices shall be allowed on federal 568
property, where such activity is prohibited by federal law or regulation or is contrary to section 569
602(a)(3) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 570
Stat.813; D.C. Official Code § 1–206.02(a)(3)).”. 571
Sec. 3 Rules. 572
The Chief Financial Officer of the District of Columbia, pursuant to section 424(d) of the 573
District of Columbia Home Rule Act, approved April 17, 1995 (109 Stat.14; D.C. Official Code 574
§ 1-204.24d), shall issue rules to implement the provisions of this act. 575
Sec. 4. Applicability. 576
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(a) This act shall apply upon the date of inclusion of its fiscal effect in an approved 577
budget and financial plan. 578
(b) The Chief Financial Officer shall certify the date of the inclusion of the fiscal effect in an 579
approved budget and financial plan, and provide notice to the Budget Director of the Council of 580
the certification 581
(c)(1) The Budget Director shall cause the notice of the certification to be published in 582
the District of Columbia Register. 583
(2) The date of the publication of the notice of the certification shall not affect the 584
applicability of this act. 585
Sec. 5. Fiscal impact statement. 586
The Council adopts the fiscal impact statement in the committee report as the fiscal 587
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 588
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 589
Sec. 6. Severability. 590
If any provision of this act or its application to any person or circumstance is held invalid, 591
the invalidity shall not affect other provisions or applications of this act that can be given effect 592
without the invalid provision or application, and to this end the provisions of this act are 593
severable. 594
Sec. 7. Effective date. 595
This act shall take effect following approval by the Mayor (or, in the event of veto by the 596
Mayor, action by the Council to override the veto) and a 60-day period of congressional review 597
as provided in section 602(c)(2) of the District of Columbia Home Rule Act, approved December 598
24, 1973 (87 Stat. 788; D.C. Official Code § 1-206.02(c)(2)). 599