(AsiaGameHub) –   A significant transformation of Washington D.C.’s gambling laws is nearing, as new legislation calls for authorizing online casino gaming while prohibiting sweepstakes-style gambling apps. This initiative is part of a wider strategy to move unregulated digital gambling into a supervised and taxed system, while also strengthening enforcement against operators who are perceived as taking advantage of legal ambiguities.

Introduced by Councilmember Wendell Felder, the bill would permit licensed operators to provide online casino games like slots, blackjack, poker, and roulette to individuals aged 21 and older within the District. Concurrently, it takes direct aim at sweepstakes casinos, which function in a legal gray zone nationwide and are facing mounting regulatory scrutiny.

The proposed system would mandate that operators secure a five-year license costing $2 million, with renewal fees established at $500,000. Regulatory oversight would include identity verification, geolocation controls, cybersecurity protocols, and responsible gambling tools to guarantee compliance and protect consumers.

A rigorous tax plan is also detailed in the legislation, featuring a 25% levy on the adjusted gross revenue from online casino activities. It also suggests limiting promotional expenditures in the initial phases of rollout, underscoring a highly controlled market approach intended to optimize tax income and curb offshore gambling.

Formally banning sweepstakes casinos is a central element of the bill. Legislators contend that these platforms replicate casino games while evading standard gambling oversight, which poses risks to players and disadvantages lawful operators. Regulators would be empowered to impose fines, issue enforcement orders, and pursue legal measures against platforms that do not comply.

Proponents of the measure state that the two-pronged strategy—combining legalization with strict enforcement—seeks to lessen dependence on offshore gambling websites and establish a more secure and clear local industry. By providing a regulated option, authorities aim to direct current gambling demand into a managed environment equipped with enhanced consumer protections.

Should the legislation be approved, Washington D.C. would become part of an increasing group of U.S. regions that are moving to legalize online casinos while also taking action against sweepstakes-based gaming formats that operate outside conventional gambling statutes.