B 26-0656

                  COUNCIL OF THE DISTRICT OF COLUMBIA
                        THE JOHN A. WILSON BUILDING
                  1350 PENNSLYVANIA AVENUE, 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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3Councilmember Wendell Felder
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8A BILL
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10_________________
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12IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
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17 To amend the Law to Legalize Lotteries, Daily Numbers Games, and Bingo and Raffles for
18Charitable Purposes in the District of Columbia to add a new Title V authorizing and
19regulating internet gaming in the District of Columbia, to establish a comprehensive
20licensing, consumer protection, responsible gaming, taxation, reporting, and enforcement
21framework administered by the Office of Lottery and Gaming, to require Certified
22Business Enterprise participation plans for internet gaming operators; to establish a
23Community Reinvestment Fund, to prohibit unlicensed sweepstakes gaming and similar
24dual-currency gaming products; and to make conforming and administrative provisions
25necessary to implement internet gaming in the District.
26BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
27 act may be cited as the “Internet Gaming and Consumer Protection Act of 2026”.
28Sec. 2. The Law to Legalize Lotteries, Daily Numbers Games, and Bingo and Raffles for
29 Charitable Purposes in the District of Columbia, effective March 10, 1981 (D.C. Law 3-172;
30 D.C. Official Code § 3-1301 passim), is amended as follows:
31(a) Title I (D.C. Official Code §§ 22-1716 through 22-1718) is amended as
32 follows:
33(1) Section 3 (D.C. Official Code § 22-1716) is amended by adding a new
34 subsection (d) to read as follows:
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35“(d) This section shall not apply to internet gaming conducted pursuant to Title V of The
36 Law to Legalize Lotteries, Daily Numbers Games, and Bingo and Raffles for Charitable
37 Purposes in the District of Columbia, effective March 10, 1981 (D.C. Law 3-172; D.C. Official
38 Code § 3-1301 passim), or to any activity authorized thereunder and conducted in accordance
39 with that title and rules issued pursuant to that title.”.
40(2) Section 3 (D.C. Official Code § 22-1717) is amended by adding a new
41  subsection (e) to read as follows:
42“(e) The prohibitions set forth in this section shall not apply to internet gaming conducted
43  pursuant to Title V of The Law to Legalize Lotteries, Daily Numbers Games, and Bingo and
44  Raffles for Charitable Purposes in the District of Columbia, effective March 10, 1981 (D.C.
45  Law 3-172; D.C. Official Code § 3-1301 passim).”.
46(b) A new Title V is added to read as follows:
47“Title V. Internet Gaming.
48“Sec. 501 Definitions.
49(a) For the purpose of this Title, the term:
50“(1) "Adjusted gross internet gaming revenue" means gross internet gaming
51 revenue less:
52(A) all sums actually paid out as winnings to patrons, including the cash
53 equivalent of any merchandise or thing of value awarded as a prize; and
54(B) the amount of cancelled, voided, or refunded wagers.
55“(2) "Certified Business Enterprise" or "CBE" shall have the meaning set forth in
56 section 2302(1D) of the Small, Local, and Disadvantaged Business Enterprise Development and
                                                   2
57 Assistance Act of 2005, effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code § 2-
58 218.02(1D)).
59“(3) "CBE plan" means a plan submitted to the Department of Small and Local
60 Business Development demonstrating compliance with the CBE participation requirements of
61 this title.
62“(4) "Chief Financial Officer" or "CFO" means the Chief Financial Officer of the
63 District of Columbia, or the CFO's designee acting through the Office of Lottery and Gaming.
64“(5) "Community Reinvestment Fund" means the fund established by section 517.
65“(6) "Dual-currency gaming product" means a game, promotional scheme, or
66 platform that uses 2 or more forms of currency, credits, tokens, entries, points, or similar units,
67 whether purchased or awarded, where one or more such units may be redeemed, converted,
68 transferred, or used directly or indirectly for cash, cash equivalents, prizes, or prize equivalents.
69“(7) "Gross internet gaming revenue" means the total amount of money and cash
70 equivalents wagered by patrons on internet games; provided, that promotional gaming credits
71 shall not be treated as wagers unless required by rule for accounting or auditing purposes.
72“(8) "Internet game" means a casino-style game conducted through an internet
73 gaming platform in which a patron wagers money or something of value for the opportunity to
74 win money, a prize, or a prize equivalent, including poker, slots, blackjack, roulette, baccarat,
75 craps, video poker, live-dealer games, peer-to-peer games, and any other game approved by the
76 Office of Lottery and Gaming by rule.
77“(9) "Internet gaming" means the offering, conducting, or operation of an internet
78 game through an internet gaming platform.
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79“(10) "Internet gaming account" means an account established in the name of an
80 individual patron for the purpose of participating in internet gaming, and includes a shared wallet
81 approved by the Office of Lottery and Gaming.
82“(11) "Internet gaming operator" or "operator" means a person licensed by the
83 Office of Lottery and Gaming under this title to offer internet gaming.
84“(12) "Internet gaming platform" means a website, mobile application, or other
85 interactive platform accessible through the internet, wireless, mobile, or similar communications
86 technology that a patron may use to participate in internet gaming.
87“(13) "Internet gaming supplier" or "supplier" means a person that provides
88 internet gaming software, game content, geolocation services, age or identity verification
89 services, payment processing, live-dealer studio services, or other goods or services specifically
90 designed for internet gaming, as determined by rule.
91“(14) "Key person" means an officer, director, partner, manager, principal
92 employee, significant owner, or other person designated by the Office of Lottery and Gaming
93 who exercises substantial influence over the management, control, compliance, or finances of an
94 applicant or licensee.
95“(15) "Office" or “OLG” means the Office of Lottery and Gaming, established
96 within the Office of the Chief Financial Officer.
97“(16) "Patron" means an individual who has established or attempted to establish
98 an internet gaming account.
99“(17) "Permissible jurisdiction" means a state, territory, tribal jurisdiction, or
100 other lawful jurisdiction with which the District has entered into a reciprocal agreement for
101 internet gaming.
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102“(18) "Prize equivalent" means cash, a cash equivalent, merchandise, gift cards,
103 digital assets redeemable for value, or any other item or thing of economic value.
104“(19) “Promotional gaming credit” means a non-withdrawable credit provided by
105 an operator to a patron for wagering purposes only, which shall not be redeemable for cash
106 unless and until wagering requirements established by rule are satisfied.
107“(20) "Shared wallet" means a wallet or account system approved by the OLG
108 that allows a patron to use one account or wallet for internet gaming, sports wagering, or both,
109 subject to adequate controls.
110“(21) "Sweepstakes gaming" means a game, promotional contest, or scheme,
111 whether offered online or in person, in which a person provides money, consideration, or
112 something of value, directly or indirectly, for the opportunity to participate in a casino-style
113 game, a simulated casino-style game, a sports wagering-like game, or a lottery-like game and
114 win a prize or prize equivalent, including through a dual-currency gaming product.”.
115“Sec. 502. Authorization of internet gaming.
116“(a) Notwithstanding any other provision of law, internet gaming conducted in
117 accordance with this title and rules issued under this title shall not be unlawful in the District.
118“(b) An operator may offer internet gaming only through an internet gaming account and
119 only when the patron is physically located in the District or in a permissible jurisdiction and the
120 wager is otherwise lawful.
121“(c) Internet gaming authorized by this title shall not include:
122(1) Lottery games regulated under Title II of the Law to Legalize Lotteries, Daily
123 Numbers Games, and Bingo and Raffles for Charitable Purposes in the District of Columbia,
124 effective March 10, 1981 (D.C. Law 3-172; D.C. Official Code § 36-601.01 et seq.);
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125(2) Sports wagering regulated under Title III of the Law to Legalize Lotteries,
126 Daily Numbers Games, and Bingo and Raffles for Charitable Purposes in the District of
127 Columbia, effective March 10, 1981 (D.C. Law 3-172; D.C. Official Code § 36-621.01 et seq.);
128 or
129(3) Game of skills machines regulated under Title IV of the Law to Legalize
130 Lotteries, Daily Numbers Games, and Bingo and Raffles for Charitable Purposes in the District
131 of Columbia, effective March 10, 1981 (D.C. Law 3-172; D.C. Official Code § 36-641.01 et
132 seq.).
133“(d) An operator may offer internet gaming under no more than 2internet gaming brands
134 approved by the OLG, including live-dealer games and peer-to-peer games, subject to rules
135 issued under this title.
136“(e) Nothing in this title shall be construed to authorize the OLG to establish mandatory
137 minimum or maximum payout percentages, except as necessary to prohibit deceptive practices or
138 protect game integrity.”.
139“Sec. 503. Rules and regulations governing conduct of internet gaming.
140“(a) To ensure fair and honest play in internet gaming and to protect the economic
141 welfare and interests of the District and participants in internet gaming, the CFO shall adopt the
142 following rules governing the conduct of internet gaming under this title.
143“(1) Acceptance of wagers on approved internet games;
144“(2) Methods of age verification and identity verification;
145“(3) Location verification requirements;
146“(4) Posting of house rules, terms, and conditions;
147“(5) Player exclusion requirements and responsible gaming requirements;
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148“(6) Types of records to be maintained by licensees;
149“(7) Data security, cybersecurity, testing, and certification standards;
150“(8) Permitted payment methods and controls on deposits and withdrawals;
151“(9) Advertising and promotional standards, including specific protections
152 relating to minors and misleading promotions;
153“(10) Technical standards for internet gaming systems, shared wallets, and live-
154 dealer studios;
155“(11) Requirements relating to how fees and taxes shall be remitted;
156“(12) Complaint handling procedures, reporting requirements, and any other
157 matter necessary to implement this title.
158“(b) The OLG may adopt emergency rules to implement this title.
159“(c) The OLG may recognize testing, certification, or suitability determinations from
160 another jurisdiction, but no person or platform shall be deemed authorized to operate in the
161 District without District approval.”.
162“Sec. 504. Licenses required; classes of license; general prohibition.
163“(a) Except as provided in a reciprocal agreement approved under section 514, no
164 individual, group of individuals, or entity may engage in an activity connected with internet
165 gaming in the District unless all licenses required by this title or by rules issued pursuant to this
166 title have been duly obtained.
167“(b) The OLG shall issue the following licenses under this title:
168“(1) Operator;
169“(2) Supplier; and
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170“(3) Any occupational or other license category the OLG determines necessary by
171 rule to protect the public interest.
172“(c) The OLG shall not grant a license until the OLG has determined that each individual
173 or entity that controls the applicant has been approved for licensure or otherwise determined
174 suitable under this title.
175“(d) No employee of the Office may be an applicant for or obtain a license issued under
176 this title.”.
177“Sec. 505. Operator licensure.
178“(a) The OLG shall issue an operator license to each applicant that the OLG finds
179 qualified under this title. The OLG shall not impose a numerical cap on the number of operator
180 licenses.
181“(b) The application fee for an operator license shall be $2,000,000. All application fees
182 submitted to this section shall be non-refundable, regardless of whether the application is
183 approved or denied.
184“(c) An operator license shall be valid for 5 years unless suspended, revoked,
185 surrendered, or otherwise terminated.
186“(d) The renewal fee for an operator license shall be $500,000 for each 5-year renewal
187 term.
188“(e) Possession of a sports wagering operator license or any other gaming license shall
189 entitle an applicant to an expedited review and approval under this title; provided, that the OLG
190 may rely on prior background investigations or licensure history to streamline review where
191 appropriate.
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192“(f)(1) An operator license shall authorize the operation of not more than 2 internet
193 gaming brands and platforms, subject to such conditions as the OLG may impose.
194“(2) The OLG may authorize an operator to operate more than 2 internet gaming
195 brands upon a showing of good cause, including demonstrated compliance capacity and market
196 need, provided that such approval is consistent with public interest.
197“(g) An operator license may not be transferred or assigned except with prior written
198 approval of the OLG.”.
199“Sec. 506. Supplier licensure.
200“(a) A person shall not provide internet gaming goods or services specifically designed
201 for internet gaming to an operator in the District without a supplier license, unless exempted by
202 rule because the goods or services are not gaming-specific or do not implicate game integrity or
203 patron protection.
204“(b) The application fee for a supplier license shall be $50,000. All application fees
205 submitted to this section shall be non-refundable, regardless of whether the application is
206 approved or denied.
207“(c) A supplier license shall be valid for 5 years unless suspended, revoked, surrendered,
208 or otherwise terminated.
209“(d) The renewal fee for a supplier license shall be $25,000 for each 5-year renewal term.
210“(e) The OLG may recognize substantially similar supplier licensure from another
211 jurisdiction and may streamline review where appropriate; provided, that no supplier shall be
212 deemed licensed in the District without District approval.
213“(f) An operator shall be deemed licensed as a supplier only for in-house goods or
214 services it provides to itself or an approved affiliate, subject to conditions imposed by the OLG.”.
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215“Sec. 507. Applications; suitability; key persons.
216“(a) An applicant for an operator or supplier license shall submit an application in the
217 form prescribed by the OLG and shall provide such information as the OLG requires, including
218 information concerning key persons, significant owners, affiliates, financing sources, and
219 business operations.
220“(b) An applicant and each key person shall be subject to District, state, and national
221 criminal history background checks and shall provide fingerprints, signed authorizations,
222 financial disclosures, and any other information required by the OLG.
223“(c) In determining suitability, the OLG shall consider the integrity, financial
224 responsibility, business ability, compliance history, and character of the applicant and key
225 persons, including any criminal history, civil fraud, regulatory discipline, or other conduct
226 indicating a risk to the public interest.
227“(d) The OLG may deny, condition, suspend, revoke, or refuse to renew a license for lack
228 of suitability or for any reason that would constitute grounds for discipline under this title.
229“(e) An operator or supplier shall notify the OLG in writing within 10 days of any
230 material change in ownership, control, key personnel, financial condition, or information
231 previously submitted in support of an application.
232“(f) A person acquiring a direct or indirect ownership or control interest that the OLG
233 determines to be material shall obtain prior written approval of the OLG.”.
234“Sec. 508. Certified Business Enterprise participation plan requirement.
235“(a) The OLG shall issue an operator license only if the applicant, in conjunction with its
236 application, submits to the Department of Small and Local Business Development (“DSLBD”)
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237 for approval a CBE plan demonstrating that at least 35% of the applicant's District-related
238 operating budget for internet gaming will be contracted with one or more CBEs.
239“(b) The CBE plan shall include:
240“(1) The name and address of each proposed contractor;
241“(2) Current certification documentation for each CBE;
242“(3) The scope of work to be performed by each contractor, which shall be for a
243 commercially useful function related to internet gaming;
244“(4) The dollar value or percentage of work to be performed by each contractor; and
245“(5) Any other information required by DSLBD or the OLG.
246“(c) An applicant may satisfy subsection (a) of this section by entering into a joint
247 venture with a CBE if approved by DSLBD and the OLG.
248“(d) An applicant may request a waiver from DSLBD of the contracting or joint venture
249 requirements of subsection (a) of this section; provided, that if DSLBD neither approves nor
250 denies the request within 30 days after submission, the waiver shall be deemed approved as a
251 matter of law.
252“(e) An operator shall file semiannual compliance reports with the OLG and DSLBD
253 describing its performance under its approved CBE plan. Failure to make good-faith efforts to
254 comply with an approved plan may constitute grounds for civil penalties, corrective action, or
255 license discipline.”.
256“Sec. 509. Patron accounts; age, identity, and geolocation.
257“(a) A person shall be at least 21 years of age to establish an internet gaming account,
258 place an internet gaming wager, or otherwise participate in internet gaming under this title.
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259“(b) An operator shall not permit a patron to place a wager until the patron's age and
260 identity have been verified to the satisfaction of the operator and the OLG's technical standards.
261“(c) A patron may establish an internet gaming account remotely from within the District,
262 subject to age verification, identity verification, and any other requirements of this title.
263“(d) A patron account shall be established only in the name of a natural person, shall be
264 nontransferable, and may not be sold, assigned, or used by any person other than the registered
265 patron.
266“(e) A patron shall not have more than one account with the same internet gaming brand
267 unless otherwise approved by the OLG.
268“(f) An operator shall provide timely and secure means for deposits and withdrawals
269 through payment methods approved by the OLG.
270“(g) An operator shall suspend or close an account if the operator knows or reasonably
271 should know that the account holder is underage, is prohibited from gaming, has provided
272 materially false information, or is engaged in fraud, collusion, cheating, or other unlawful
273 activity.”.
274“Sec. 510. Duties of operators.
275“(a) An operator shall use commercially reasonable methods and any methods required
276 by rule to:
277“(1) Verify the age and identity of each patron;
278“(2) Verify the physical location of each patron at the time each wager is initiated
279 and accepted;
280“(3) Prevent underage play, unauthorized access, collusion, cheating, bots,
281 account fraud, and proxy wagering;
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282“(4) Protect the confidentiality and security of patron information, wagering data,
283 and account data;
284“(5) Maintain accurate books and records;
285“(6) Detect suspicious activity and report it as required by rule;
286“(7) Provide clear house rules, patron terms and conditions, privacy disclosures,
287 and complaint procedures;
288“(8) Maintain customer support reasonably sufficient to serve patrons in the
289 District; and
290“(9) Comply with responsible gaming requirements under this title.
291“(b) An operator shall maintain sufficient reserves, in a form approved by the OLG, to
292 cover patron account balances, unpaid winnings, and outstanding wager liabilities. The OLG
293 may require a reserve of not less than $500,000 or a greater amount necessary to protect patrons
294 and the District.
295“(c) Patron funds shall be held in trust or in one or more segregated accounts separate
296 from operational funds, or by another method approved by the OLG that provides equivalent or
297 greater protection to patrons.
298“(d) An operator may permit a shared wallet with sports wagering only if approved by the
299 OLG and subject to controls sufficient to distinguish liabilities, tax reporting, and patron
300 protections across product categories.
301“(e)(1) An operator shall be prohibited from creating an internet wagering account or
302 placing an internet wager through its own applications and shall employ reasonable methods to
303 prohibit:
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304“(A) A director, officer, owner, or employee of the operator, and any
305 living relative living in the same household as the aforementioned individuals from creating an
306 internet wagering account or placing an internet wager with the operator;
307“(B) An individual, group of individuals, or entity with access to non-
308 public confidential information held by the operator from creating an internet wagering account
309 or placing an internet wager with the operator; or
310“(C) An individual, group of individuals, or entity from creating an
311 internet wagering account or placing a wager as an agent or proxy for others.
312“(2) In determining which individual, group of individuals, or entity is to be
313 excluding from creating an internet wagering account or placing an internet wager pursuant to
314 paragraph (1) of this subsection, an operator shall use publicly available information and any
315 lists of such individuals, group of individuals or entities that operator develops.
316“(f)(1) An operator shall implement controls to verify that payment methods used to fund
317 a patron account are owned by, or lawfully authorized by, the patron.
318“(2) An operator shall identify and flag discrepancies between the patron identify
319 and the source of funds.
320“(3) Where an operator has reason to believe that a patron is using funds provided
321 by a third party without authorization, the operator shall:
322“(A) Suspend the account pending investigation; and
323“(B) Report such activity to OLG.
324“(4) The OLG may establish additional requirements relating to third-
325 party funding and financial harm prevention.”.
326“Sec. 511. Responsible gaming; voluntary exclusion.
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327“(a) Each operator shall provide, at a minimum, the following responsible gaming tools
328 to each patron through the internet gaming platform:
329“(1) Deposit limits that may be set on a daily, weekly, and monthly basis;
330“(2) Spend or loss limits that may be set on a daily, weekly, and monthly basis;
331“(3) Session or time limits, including a daily time-based limit;
332“(4) Cooling-off periods or temporary suspensions of not less than 72 hours;
333“(5) Self-exclusion and account closure options consistent with OLG rules;
334“(6) Real-time or near-real-time access to account history, including deposits,
335 withdrawals, wagers, wins, losses, and time spent on the platform;
336“(7) Periodic reminders of time spent and net activity during a session; and
337“(8) Procedures to evaluate requests made by third parties to exclude an
338 individual from internet gaming, including requests to exclude an individual from placing sports
339 wagers when the requestor provides documentary evidence of sole joint financial responsibility
340 for the source of funds deposited with an operator by the individual.“(b) A decrease in a patron-
341 imposed limit shall take effect as soon as practicable and not later than the patron's next login.
342 An increase in a limit shall take effect only after a cooling-off period established by rule.
343“(c) The OLG shall establish and maintain a voluntary exclusion program for internet
344 gaming or shall incorporate internet gaming into an existing Office exclusion program.
345“(d) The voluntary exclusion program shall provide procedures for verification of an
346 exclusion request, the duration of exclusion, petitions for removal where appropriate,
347 dissemination of exclusion information to operators, and cessation of direct marketing to
348 excluded individuals.
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349“(e) Information identifying a person on the voluntary exclusion list shall be confidential
350 except as necessary to administer the program, comply with law, or effectuate exclusion across
351 affiliated lawful gaming operations as permitted by rule.
352“(f) Each operator shall train relevant employees on responsible gaming, underage
353 gaming prevention, and escalation procedures and shall submit an annual responsible gaming
354 report to the OLG.
355“(g) An operator shall establish default deposit and loss limits for new patron accounts,
356 which may be modified by the patron following acknowledgment of responsible gaming
357 information.
358“(h) The OLG may establish maximum limits or other safeguards for high-risk patrons
359 based on data-driven indicators of harmful play.”.
360“Sec. 512. Advertising, marketing, and promotional standards.
361“(a) Advertising and marketing relating to internet gaming shall be truthful, not
362 misleading to a reasonable consumer, and consistent with this title and rules issued by the OLG.
363“(b) Advertising and marketing shall not intentionally target persons under 21 years of
364 age or other prohibited persons.
365“(c) Advertising and marketing shall include responsible gaming messaging and
366 information about how to access help resources, in a manner prescribed by rule.
367“(d) Promotional offers, bonuses, credits, and incentives shall be disclosed clearly and
368 conspicuously, including material restrictions, play-through or rollover requirements, expiration
369 periods, and withdrawal conditions.
370“(e) The OLG may prohibit or restrict advertising or promotional practices that the OLG
371 finds unfair, deceptive, predatory, or contrary to the public interest.
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372“(f)(1) An operator shall not deduct the value of promotional gaming credits from
373 adjusted gross internet gaming revenue except as expressly authorized by this section.
374“(2) Beginning on the first day of the third year after initial licensure, the total
375 value of promotional gaming credits deducted by an operator in any fiscal year shall not exceed
376 1.75% of the operator’s adjusted gross internet gaming revenue for that fiscal year.
377“(3) The Office may authorize a higher temporary cap for a period not to exceed
378 12 months following initial licensure to support market entry.
379“(4) Promotional gaming credits shall not be:
380“(A) Transferrable between patrons;
381“(B) Redeemable for cash absent wagering requirements; or
382“(C) Structured to evade the limitations of this subsection.”.
383“Sec. 513. Technology standards; cybersecurity; records; regulatory access.
384“(a) An operator and supplier shall implement and maintain information security and
385 cybersecurity controls reasonably designed to protect patron data, wagering data, and critical
386 systems.
387“(b) The OLG may require compliance with industry-recognized cybersecurity and
388 information security frameworks, including multi-factor authentication, encryption, logging,
389 access controls, incident response, vendor oversight, and periodic testing.
390“(c) All primary systems necessary to the placement or resolution of internet gaming
391 wagers shall be located in the United States unless the OLG approves otherwise for good cause
392 and subject to conditions necessary to protect the public interest and regulatory access.
393“(d) An operator shall use OLG-approved geolocation methods and age and identity
394 verification methods.
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395“(e) An operator and supplier shall maintain records of each wager, transaction,
396 adjustment, login, withdrawal, deposit, geolocation decision, promotional gaming credit, and
397 suspicious activity report for a period specified by the OLG, which shall not be less than 3 years.
398“(f) The OLG shall have access, directly or indirectly, to the data, records, reports, and
399 systems necessary to administer and enforce this title.
400“(g) The OLG may require independent testing and certification of games, platforms,
401 systems, random number generators, geolocation systems, and any other components relevant to
402 integrity and compliance.”.
403“Sec. 514. Reciprocal agreements.
404“(a) The Executive or the Council may enter into reciprocal agreements with permissible
405 jurisdictions for the conduct of lawful internet gaming, including pooled liquidity and interstate
406 or interjurisdictional internet poker, to the extent authorized by federal law.
407“(b) A reciprocal agreement may permit:
408(1) persons physically located in a permissible jurisdiction to place wagers with
409 an operator licensed in the District; and
410(2) persons physically located in the District to place wagers with a person
411 licensed in a permissible jurisdiction, subject to the terms of the agreement and applicable law.
412“(c) The Executive or the Council may require that reciprocal agreements include
413 provisions addressing enforcement, revenue allocation, regulatory access, responsible gaming,
414 anti-money laundering cooperation, dispute resolution, and any other protections the OLG deems
415 necessary.”.
416“Sec. 515. Taxation of internet gaming.
417“(a) On or before the 20th day of each month, an operator shall:
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418“(1) File a return, on forms and in the manner prescribed by the OLG, indicating
419 the amount of its adjusted gross internet gaming revenue for the preceding calendar month; and
420“(2) Pay to the District of Columbia Treasurer an amount equal to 25% of the
421 operator’s adjusted gross internet gaming revenue for the preceding calendar month.
422(2)(A) From the tax revenue collected pursuant to subsection (a)(2) of this
423 section:
424(i) The first $500,000 shall be transferred to the Department of Behavioral
425 Health, or to such District agency or agencies as may be designated by law, for prevention,
426 education, treatment, referral, and recovery services related to gambling addiction and related
427 behavioral health needs.
428“(b) If adjusted gross internet gaming revenue is negative for a month, the operator may
429 carry the negative amount forward against subsequent months for not more than 6 months after
430 the month in which the negative amount occurred.
431“(c) All funds owed to the District under this title shall be held in trust within the
432 boundaries of the District for the District by an operator until the funds are paid to the District of
433 Columbia Treasurer. An operator shall establish one or more separate bank accounts into which
434 internet gaming revenue shall be deposited and maintained until such time as the funds are paid
435 to the District.
436“(d) The OLG may allow credits or refunds for refunded or cancelled wagers in a manner
437 prescribed by rule.
438“(e) An operator shall maintain records sufficient to substantiate all figures reported on
439 tax returns filed under this section and shall make such records available to the OLG upon
440 request.”.
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441“Sec. 516. License fees and administrative costs.
442“(a) License fees collected under this title shall be deposited into the General Fund of the
443 District of Columbia.
444“(b) The administrative and operational cost of the Office of Lottery and Gaming to
445 implement the provisions shall be funded through appropriations.
446“(c) Any annual tax revenue remaining collected pursuant to section 515, after the
447 allocations required by this title shall be deposited into the General Fund of the District of
448 Columbia.”.
449“Sec. 517. Regulatory assessment for administration
450“(a) Each licensed operator shall remit to the District a regulatory assessment equal to 2%
451 of the operator’s adjusted gross internet gaming revenue.
452“(b) Amounts collected pursuant to this section shall be deposited into a dedicated
453 account within the General Fund and shall be used solely for the administration, regulation, and
454 enforcement of this title by the Office of Lottery and Gaming.
455“(c) The regulatory assessment imposed under this section shall not be considered a tax.
456“(d) The assessment shall be reasonably related to the costs of regulating internet gaming
457 in the District.
458“(e) Any amounts collected in excess of the reasonable costs of administration shall
459 revert to the General Fund at the end of the fiscal year.”.
460“Sec. 518. iGaming Community Reinvestment Fund.
461“(a) There is established as a special fund the iGaming Community Reinvestment Fund
462 (“Fund”), which shall be administered by the Chief Financial Officer, or to such District agency
463 or agencies as may be designated by law, in accordance with this section.
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464“(b) Each licensed operator shall remit to the District a community impact assessment in
465 an amount equal to 2% of the operator’s adjusted gross internet gaming revenue.
466“(c) Amounts collected pursuant to this subsection shall be deposited into the Fund and
467 shall not be considered part of the tax imposed under section 515.
468“(d)(1) Money in the Fund shall be used, subject to authorization in an approved budget
469 and financial plan, solely for programs, services, and initiatives designed to mitigate the social
470 and economic impacts of internet gaming.
471“(2) The Chief Financial Officer shall transfer money from the Fund, as provided
472 in an approved budget and financial plan, to the following agencies for the following purposes:
473“(A) 30% to the Department of Insurance, Securities, and Banking, for
474 Debt management, financial counseling, consumer financial protection, and financial literacy
475 programs and services;
476“(B) 30% to the Office of Victim Services and Justice Grants, for
477 domestic violence, intimate partner violence, survivor services, and family stability programs;
478“(C) 10% to the Department of Health, for research and evaluation
479 services on gambling behavior and gambling addiction;
480“(D) 30% to the Department of Employment Services, for youth
481 development, and training programs related to artificial intelligence, gaming, coding and
482 software development, and related technology fields.
483“(e) The money deposited into the Fund, and any interest earned thereon, shall not revert
484 to the unrestricted fund balance of the General Fund of the District of Columbia at the end of a
485 fiscal year, or at any other time.
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486“(f)(1) Not later than 120 days after the end of each fiscal year, the recipient agencies, in
487 coordination with the Chief Financial Officer and Office of Lottery and Gaming, shall submit to
488 the Council and publish on a publicly accessible website a report on the Fund.
489“(2) The report shall include:
490“(A) Total amounts collected and expended;
491“(B) Programmatic uses of funds by agency;
492“(C) Outcomes and performance metrics, where available; and
493“(D) An assessment of the extent to which funded programs mitigate the
494 impacts of internet gaming.
495“(g) The fund shall supplement, and not supplant, existing funding for the purposes
496 described in this section.
497“(h) The Fund shall be accounted for as a special fund in accordance with section § 47-
498 131 of the District of Columbia Official Code.”.
499“Sec. 519. Reporting; confidentiality; public records.
500“(a) Not later than 120 days after the end of each fiscal year, the OLG shall submit to the
501 Council and publish on the Office's website an annual report on internet gaming in the District.
502“(b) The annual report shall include, at a minimum:
503“(1) The number of licensed operators and suppliers;
504“(2) Aggregate internet gaming revenue, tax collections, and license fee
505 collections;
506“(3) Amounts directed to behavioral health purposes and to the Community
507 Reinvestment Fund;
508“(4) Enforcement actions taken under this title;
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509“(5) Complaint trends and dispute-resolution information, in aggregate form;
510“(6) Data on voluntary exclusions and the use of responsible gaming tools, in
511 aggregate form consistent with privacy protections; and
512“(7) Operator compliance with CBE plans and local participation commitments.
513“(c) The following application-related information shall be public records unless
514 otherwise protected by law: the name and principal business address of an applicant or licensee;
515 the names of key persons; the internet gaming brands proposed or approved; and the grant,
516 denial, suspension, revocation, or nonrenewal of a license.
517“(d) Investigative files, security protocols, patron-identifying information, trade secrets,
518 and confidential commercial or financial information submitted to the OLG shall be protected
519 from disclosure to the extent permitted by District law.
520“(e) Nothing in this section shall prevent the OLG from sharing information with law
521 enforcement, regulatory agencies, the Department of Small and Local Business Development,
522 the Attorney General for the District of Columbia, or other governmental entities as authorized
523 by law.”.
524“Sec. 520. Enforcement; unlawful acts; sweepstakes gaming prohibition.
525“(a) If the OLG determines, after notice and an opportunity for hearing, that a licensee
526 has violated this title, a rule or order of the OLG, or a condition of licensure, the OLG may:
527“(1) Issue a reprimand or corrective action order;
528“(2) Impose a civil fine of not more than $100,000 for each violation;
529“(3) Impose a civil fine of not more than $500,000 for violations arising out of the
530 same transaction, occurrence, pattern, or practice, where the OLG finds such aggregation
531 appropriate;
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532(4) Suspend, revoke, condition, or refuse to renew a license; and
533(5) Require restitution or other remedial measures where authorized by law.
534“(b) The OLG may issue cease and desist orders to persons engaged in unlicensed
535 internet gaming, unlawful sweepstakes gaming, or other conduct prohibited by this title and may
536 seek injunctive relief and any other appropriate remedy in a court of competent jurisdiction.
537“(c) Except as conducted by a licensed operator under this title or otherwise expressly
538 authorized by District law, a person shall not offer, promote, or conduct sweepstakes gaming, a
539 dual-currency gaming product, or any other product that mimics or simulates casino-style
540 gaming, sports wagering, lottery-style gaming, or a substantially similar gambling activity where
541 a person provides consideration or something of value for the opportunity to win a prize or prize
542 equivalent.
543“(d) For purposes of subsection (c) of this section, consideration may be direct or indirect
544 and includes the purchase of credits, tokens, entries, subscriptions, access, or any similar item or
545 service that is part of the ability to participate or continue participating.
546“(e) Each day of a violation of subsection (c) of this section shall constitute a separate
547 violation.
548“(f) The remedies in this section are cumulative and not exclusive and do not limit any
549 authority otherwise available under District law.
550“(g) The Attorney General for the District of Columbia may bring a civil action in a court
551 of competent jurisdiction to enforce this title, including actions for injunctive relief, civil
552 penalties, restitution, and disgorgement.”.
553“Sec. 521. Implementation.
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554“(a) The CFO shall issue proposed and, as appropriate, emergency rules to implement
555 this title not later than 90 days after the effective date of this act.
556“(b) The CFO shall establish an application process not later than 30 days after the
557 effective date of this act.
558“(c) Internet gaming shall not commence until the CFO certifies that the regulatory
559 framework, technical standards, and integrity controls necessary to protect the public and the
560 District are in place.
561“(d) The CFO shall authorize the launch of internet gaming as soon as practicable, but not
562 later than 180 days after the effective date of this act, unless the Mayor transmits to the Council a
563 written determination that additional time is required to ensure public protection, regulatory
564 readiness, or system integrity.”.
565“Sec. 522. Conflict with federal law.
566“Nothing in this title shall be construed to authorize noncompliance with any provision of
567 any federal law or regulation. Notwithstanding any provision in this title, no internet wagering,
568 or gambling in any form, or the operation of gambling devices shall be allowed on federal
569 property, where such activity is prohibited by federal law or regulation or is contrary to section
570 602(a)(3) of the District of Columbia Home Rule Act, approved December 24, 1973 (87
571 Stat.813; D.C. Official Code § 1–206.02(a)(3)).”.
572Sec. 3 Rules.
573The Chief Financial Officer of the District of Columbia, pursuant to section 424(d) of the
574 District of Columbia Home Rule Act, approved April 17, 1995 (109 Stat.14; D.C. Official Code
575 § 1-204.24d), shall issue rules to implement the provisions of this act.
576Sec. 4. Applicability.
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577(a) This act shall apply upon the date of inclusion of its fiscal effect in an approved
578 budget and financial plan.
579 (b) The Chief Financial Officer shall certify the date of the inclusion of the fiscal effect in an
580 approved budget and financial plan, and provide notice to the Budget Director of the Council of
581 the certification
582(c)(1) The Budget Director shall cause the notice of the certification to be published in
583   the District of Columbia Register.
584(2) The date of the publication of the notice of the certification shall not affect the
585   applicability of this act.
586Sec. 5. Fiscal impact statement.
587The Council adopts the fiscal impact statement in the committee report as the fiscal
588 impact statement required by section 4a of the General Legislative Procedures Act of 1975,
589 approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a).
590Sec. 6. Severability.
591If any provision of this act or its application to any person or circumstance is held invalid,
592 the invalidity shall not affect other provisions or applications of this act that can be given effect
593 without the invalid provision or application, and to this end the provisions of this act are
594 severable.
595Sec. 7. Effective date.
596This act shall take effect following approval by the Mayor (or, in the event of veto by the
597 Mayor, action by the Council to override the veto) and a 60-day period of congressional review
598 as provided in section 602(c)(2) of the District of Columbia Home Rule Act, approved December
599 24, 1973 (87 Stat. 788; D.C. Official Code § 1-206.02(c)(2)).
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