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DC committee hears competing evidence on legalizing and regulating iGaming
Summary
Council members heard hours of testimony on Bill 26-0656, weighing whether to regulate an existing unregulated online market or leave enforcement against offshore operators as-is; witnesses split between addiction warnings and industry claims that regulation would provide safeguards and revenue.
The Committee on Human Services convened a public hearing May 4 on Bill 26‑0656, the Internet Gaming and Consumer Protection Act of 2026, opening a months‑long debate over whether to authorize and regulate online casino‑style gaming in the District. Chair Matt Fruman said the bill’s stated purpose is to bring an activity already accessible to residents under the Office of Lottery and Gaming and add consumer protections and enforcement authority.
Councilmember Vincent Felder framed the choice as practical and fiscal: "Estimates show that DC residents wagered approximately $700,000,000 on unregulated gaming platforms in 2024 alone," he said, arguing legalizing and taxing iGaming could capture revenue while providing safeguards. Industry witnesses said regulated operators can provide KYC, geolocation and responsible‑gaming tools and cited prior experience with mobile sports wagering.
Opponents — including problem‑gambling experts and advocacy groups — warned that iGaming is especially addictive and that legalization can expand overall participation. Supporters countered that a regulated market would create recourse for consumers and funding for treatment. Thomas R. Burnside, executive director of the Office of Lottery and Gaming, told the committee the bill generally meets three tests he uses for gaming legislation: alignment with the District’s framework and revenue needs, strong protections for consumers, and adequate resources for oversight.
The hearing produced no votes. Committee members pressed witnesses on data about whether legalization displaces illegal operators, how quickly rules and licensing could be implemented (OLG said emergency rules could be promulgated within 90 days), what level of dedicated funding problem‑gambling services require, and how to protect minors and other vulnerable groups. The committee set a written‑testimony deadline of May 11, 2026.
