Technically not the state but a federal district, the capital of the United States of America borders Virginia and Maryland on the Potomac River’s shores.
The Old Dominion and the Old Line State both donated land to form the District of Columbia per the Residence Act, thus creating the City of Washington in 1791.
For the government seat, the history of D.C. offers numerous interesting, even quirky facts.
If the city were to become the 51st state, Article 1, Section 8 of the U.S. Constitution would have to change since the supreme document explicitly declares it as a federal district. Even if this happens, the monuments and buildings, such as the White House and Capitol, would still be considered ‘capital district,’ and not part of the state.
Close to 69 square miles bears the name of George Washington, of course, but was also initially named per a nickname for America during the Revolutionary War — Columbia. However, the first U.S. president never resided in D.C., leaving that honor to John Adams.
Representing the unique diversity of America, residents of the city speak 168 different languages at their homes, at minimum, according to Census Bureau data. While we’re at staggering numbers: The capital has more than 177 embassies and cultural centers, and the Library of Congress is the largest in the world, hosting 170 million items in its collection.
Even with such an important place in American history, residents could not vote in presidential elections until 1961.
And, if we were to draw a comparison between Washington D.C. and the homonymous state in the west, the city gets more rain than Seattle.
Naturally…
…the metropolitan area’s economy revolves around professional, scientific, financial, and technical services, accommodation, health services, public administration, and numerous contractors in defense and civilian branches.
Those verticals generated $146 billion gross domestic product in 2019, equal to 0.7 percent of the national annual GDP.
Considering the political epicenter of the city…
…putting D.C. and gambling in the same sentence might be contradictory.
Indeed, the gaming scene is relatively modest, still very young, but in existence.
The first vertical to kick-off in 1982 was the lottery. The purpose was to fund education, public safety, housing, senior and child services, and other social causes.
Under the same umbrella, the federal district allows charitable gambling through bingo, raffles, and ‘Monte Carlo’ nights. The latter is synonymous with land-based casinos evenings and poker tournaments organized for humanitarian purposes.
All other forms of gambling remain prohibited, and this especially goes for fantasy sports and iGaming, even though some offshore online hubs accept players among 705,000 residents inhabiting the capital.
Washington D.C. legalized retail and online sportsbetting in 2019, joining the growing cohort of statewide markets in the post-PASPA era. The D.C. Lottery has exclusive rights to all wagering operations in the district.
Legal Framework
Only a handful of laws govern such a fairly light market. The majority of provisions for general gaming activities stem from District of Columbia Code Chapter 17 and its two subchapters (§§ 22-1701 – 22-1715 and §§ 22-1716 – 22-1718).
Additional legislation is sportsbetting bill B22-0944 (§§ 36-621.01 – 36-621.17), an integral part of D.C. Code Chapter 6, which also includes amended stipulations on gambling and skill machines (§§ 36-601.01 – 36-601.37 and §§ 36-641.01 – 36-641.21, respectively).
The latter connotes “a mechanical or electronic gaming device that rewards the winning player or players with cash, a gift card, or a voucher that can be redeemed for cash.” Worth mentioning, though: This provision does not relate to land-based slots, which remains prohibited.
A primary state regulator for all gambling activities, including sportsbetting, is the Office of Lottery and Gaming (OLG), operating as “a revenue-generating agency of the District of Columbia.”
The minimum legal age for all verticals is 18 years.
An 8.5 percent withholding tax is levied on lottery winnings over $5,000. Private sportsbetting operators pay a ten percent tax on on-site revenue.
The D.C. government retains all lotteries and retail/mobile wagering revenues and transfers profits to the General Fund. Up to 2020, the volume of contributions has been over $1.6 billion.
Licensing
The OLG is also in charge of the sportsbetting licensing process. Under B22-0944, there are four types of licenses: Operator, Management Services Provider, Supplier, and Occupational.
In practice, though…
…all licensees are segmented into two categories: Class A and Class B.
The former includes four major sports venues — Capital One Arena, Audi Field, Nationals Park, and St. Elizabeth’s East Entertainment and Sports Arena — which pay a $5,000 application fee plus $500,000 initial license cost. Class A permit has to be renewed every five years, including an additional $250,000 in payments.
Class B operators — restaurants, bars, and such — also pay an initial $5,000 cost plus a $100,000 license fee. They undergo the same renewal timeline, although expenses do not exceed $50,000.
If any licensed operator forms a partnership with a local business that retains a majority interest, it qualifies for a fifty percent discount.
Considering applicants’ reputable backgrounds — after all, this is the capital of America — the main criteria for issuing permits include data sources used to resolve sports wagers and collection methods.
All operators have to report both categories of information to the OLG periodically to ensure fairness of operations.
Regardless of the class, all licensees are prohibited from taking bets which involve locally based teams, collegiate sports events taking place within the district, and any high school games.
Still, it’s entirely legal to accept wagers on events involving D.C. based teams, such as the March Madness basketball tournament, for instance.
Players’ Protection
The vast majority of residents and tourists approach the strictly-governed district’s gaming market prudently and responsibly, according to the OLG.
However…
…not leaving anything to chance, the district developed the Responsible Gaming Framework in 2018.
The key features include the promotion of responsibility in each vertical, prevention of gambling available to underage groups, and, in particular, deterrence of self-excluded patrons.
Each member of the OLG — employee, retailer, operator, and contractor — must be trained on “the regulations, policies, and procedures” of this framework and its baseline principle in creating “a sustainable, measurable, socially responsible, and accountable approach to gambling.”
In addition to the custom-made Responsible Gambling Verification Program — also present within the D.C. market — other prominent bodies helping the players offer their services in the capital, such as National Council on Problem Gambling, National Problem Gambling Helpline, Gamblers Anonymous, Gem-Anon, and GemTalk.
Final Notes
It seems that the prevailing notion among legislators and residents of Washington D.C. is that if you live or work there, you most probably have a little need to indulge in any form of gambling.
For those seeking recreational pastime, the lottery or charitable gaming will have to suffice. More adventurous and knowledgeable players can always consider sportsbetting kicks and wagers on the major NHL/NFL teams in the area.
Others in this predominantly white-collar, Democrat-run city seeking the table games thrills of conventional casinos have to use facilities in neighboring states and their thriving markets.
While such disposition might be well-suited for the capital of America, online punters should have in mind that iGaming remains off-limits for residents, even though more than a few offshore hubs will accept their deposits.
One way or the other…
…no matter your preference, all the principles remain in place: Do your due diligence prudently, play responsibly, use your choices to balance the chances, and have at least a bit more luck than fun, which gambling is all about.
In other words, have tons of luck!
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