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Washington to legalize iGaming and ban sweepstakes
Councilmember Wendell Felder has introduced the Internet Gaming and Consumer Protection Act 2026 to create a legal licensing system for online casinos and, at the same time, ban sweepstakes.
The proposal was introduced on April 9, 2026, and has since been sent to the Committee on Human Services, with a hearing scheduled on April 21, 2026. The bill suggests that the Office of Lottery and Gaming must be responsible for implementing the measures.
According to the legislation, operators would have to get licenses, meet compliance rules, and use player identification systems, with the legal age of gambling set at 21.
The plan includes a 25% tax on adjusted gross gaming revenue, and operators would also have to pay a $2 million licensing fee, with renewals costing $500,000 every five years.
Additionally, iGaming operators would be required to spend 35% of their budgets with district-based businesses or face penalties in case of non-compliance.
The bill also seeks to ban sweepstakes casinos, which sell virtual currencies that can be swapped for cash or prizes, as Felder argues that their dual-currency model goes against consumer protections.
The final decision will be made by Congress, and if approved, regulators would get 90 days to finalize the laws, which could potentially launch in 180 days.
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