Washington DC Lawmaker Proposes Online Casino Legalisation with 25% GGR Tax

Washington DC Could Become the Next US iGaming Market — If a New Council Proposal Advances

Washington DC, which already operates licensed online sports betting through its DC Lottery and GambetDC platform, could expand into full iGaming under a new proposal introduced by a city council member in April 2026.

What Happened

A DC Council member introduced legislation on approximately April 13, 2026 to legalise online casino gaming — including slot machines and interactive table games — within the District of Columbia. The proposal sets a 25% gross gaming revenue tax on licensed iGaming platforms, with the city's first $500,000 from each operator earmarked for gambling addiction treatment and related behavioural health needs. DC already has an operational online sportsbook framework; the proposal would extend the existing regulatory infrastructure to cover casino-format digital gaming. The legislation would need to pass the DC Council and receive approval from Congress — a procedural requirement unique to DC's status as a federal district — before taking effect.

Why It Matters

DC represents a relatively straightforward iGaming legalisation pathway compared to US states, where complex legislative processes and tribal gaming compacts frequently delay or block bills. Its position as a federal district means it has a single governing body and no tribal gaming interests to negotiate around. A 25% GGR tax is competitive with major US iGaming markets (New Jersey taxes at 17.5%; Pennsylvania at 36%) — suggesting the proposal is designed to attract multiple licensed operators rather than create a lottery monopoly. The inclusion of a problem gambling funding mechanism from the first dollar reflects the political sensitivities around iGaming expansion in a jurisdiction where elected officials face direct accountability to residents.

Industry Context

DC's iGaming proposal comes as the number of US states with operational online casino frameworks remains limited to New Jersey, Michigan, Pennsylvania, Delaware, West Virginia, Connecticut, and Rhode Island. A DC approval — even if operationally modest given the district's population — would add symbolic momentum to the national legalisation conversation and provide another reference data point for states evaluating their own iGaming frameworks.