Washington DC online gambling

Written by Denise Mathey

Checked by Paul P. •

Last updated on April 4, 2025

The Washington DC online gambling is a growing scene. Online casinos aren’t legal yet, but DC bettors can wager legally on sports using a licensed sportsbook app.

Looking for poker and casino games? Washington DC online gambling laws do allow you to play table games at social and sweepstakes casinos.

I’ve created a full guide that covers what’s legal in DC, the games available, and everything else you need to know to gamble legally in the Nation’s Capital.

DC online casinos

• Overview
• DC online gambling taxes
• Tax rates
• Income tax rates
• Paying gambling taxes
• Tax breakdown
• Undisclosed winnings
• What's legal
• DC sports betting
• DC social casinos
• Online poker
• Other gambling
• Offline gambling
• Safety
• FAQs
• Sources

Washington D.C. online gambling taxes

If you want to gamble online, then you can bet on sports, daily fantasy sports, and lottery games in Washington D.C. However, online casinos and online poker rooms are currently illegal in the federal district. The closest thing to online casinos are sweepstakes casinos, which are legal in D.C.

All money won online is liable for federal tax and income tax. D.C. tax ranges from 4% to 10.75%, depending on how much you make; so it’s a gradual tax system.

Is the tax rate different for each type of gambling?

Whether you win money from sports betting, daily fantasy sports, or playing the D.C. lottery, you’re liable for the same tax rate. So, there aren’t different tax rates for different legal gambling options. 

At the federal district level, D.C. taxes gambling winnings as ordinary income, with rates ranging from 4% to 10.75%, depending on total taxable income.

What’s more, winnings over $600 from sports betting, lotteries, or sweepstakes, where the payout is at least 300x the wager, may be subject to federal withholding.

How does your income affect taxes in Washington D.C.?

The amount of money you earn in Washington, D.C. affects the amount of tax you pay. In a nutshell, the more you make, the higher tax bracket you fall within. Here’s how it works:

• Lower earners pay a 4% tax on their income.
• Middle-income earners pay between 6% and 8.5% on their income.
• Higher earners pay up to 10.75% on their income.

As you can see, the D.C. tax system is a tiered tax rate, so it increases as your income increases. This applies to all types of income, including your salary, money won from gambling online, and anything else you earn.

Here’s a table with the income ranges for the lower, middle, and higher income brackets in D.C.:

How to pay gambling taxes in Washington, D.C.?

Here are the steps you’ll need to take to remain compliant with D.C. taxes:

1. Include gambling winnings on your tax return

• You need to report all money won online on your D.C. tax return.
• This includes even small amounts that are not liable for federal withholding.
• Use the Internal Revenue Service (IRS) form 1040 to report gambling income in D.C.

2. Complete W-2G for large wins

• The W-2G form is sent to the IRS if you win over $600.
• This form displays winnings and tax withheld.

3. Report taxes on your D.C. income tax form

• You’ll need to complete D.C. form D-40 for federal district tax reporting.
• When completing the form, make sure you include all gambling income earned in D.C.

4. Track losses for possible deductions

• In D.C., losses can offset winnings. However, to do this, you need to keep detailed records of your wins and losses.
• You can’t deduct gambling losses that are more than the winnings you report on your return.
• Let’s say you won $3,000 from sports betting in 2024. But over the year, you also lost $5,000 placing sports wagers. When filing your taxes, you can only deduct up to $3,000 of your losses; matching your winnings. The extra $2,000 in losses cannot be deducted and is simply a personal loss.

Tax breakdown for players in Washington, D.C.

Here’s a simple breakdown of gambling taxes for Washington, D.C. players:

Sports betting

• Federal tax is 24% if you win over $600 or 300 times your bet.
• D.C. tax is 4% to 10.75%, depending on your total income.
• You’ll get a W-2G form if you win over $600.

Sweepstakes casinos

• Federal tax is 24% on any money you win.
• D.C. state tax is 4% to 10.75%, based on total income.
• You won’t get a W-2G form, so you need to report winnings yourself.
• Prizes are often reported on Form 1099-MISC as “other income.

D.C. lottery

• Federal tax is 24% on any lottery winnings over $600.
• D.C. tax is 4% to 10.75%.
• You’ll get a W-2G form if you win over $600.

What happens if you don’t report gambling winnings in Washington, D.C.?

If you don’t report gambling winnings in D.C., then you may be liable for fines and interest on money owed to the federal district. 

If you don’t report taxes, the IRS may choose to conduct an audit on your finances, and if they find out that you haven’t been reporting your income, you could face legal consequences. 

Regardless of what happens during the IRS audit, you’ll still be liable for all taxes you owe until it is paid. So, it’s in your best interest to ensure that you remain compliant with all sources of income, including gambling winnings, while residing in Washington, D.C.

Washington DC online gambling sites by type

Washington DC laws currently allow a few types of gambling, including online and in-person sports betting, online and retail lottery, and land-based bingo.

Gambling in the district is a relatively new thing, and online gambling sites have a long way to catch up with states like NJ and PA. Online sports betting officially arrived in the district in 2020 with the launch of William Hill (now Caesars).

Check out my table to find out what’s available and how old you have to be to gamble in DC. 

Washington DC betting sites Legal since 2020

Online sports betting has been available in Washington DC since 2020. DC sports betting has different rules than other legal gambling jurisdictions in the US.

Mobile sports betting is available, but you must be within two blocks of your betting app’s retail sportsbook to place bets. For example, to use the BetMGM app, you must be within two blocks of the Nationals Park.

You can click any link in this section to see the best Washington DC online betting sites. We check out every sportsbook’s design, markets, odds, features, and promotions to decide how to rate it. What’s more, if you sign up at our recommended sites and make a deposit, you can redeem generous welcome bonuses and many other offers thereafter.

Social casinos The best legal alternative to online casinos in Washington DC

While DC gambling laws don’t allow online casinos in the district, you can register with a social casino site and play your favorite casino games for free.

At sites like BetRivers, you can’t win real money, but you also don’t have to worry about risking your cash either. You can play slots, blackjack, roulette, and more exciting games by simply signing up and verifying your age.

I’ve created a list of the best DC online casinos available in the district. Our gambling experts review every social casino and compare each site across essential areas, like player security, range of games, and customer support. For an at-a-glance look, you can view our recommended social and sweepstakes casinos here.

Online poker at social casinos

While online poker isn’t legal in Washington DC, you can play the thrilling game for free at social casino sites. Social and sweepstakes casinos offer like BetRivers offer a wide range of poker game varieties, like Texas Hold ‘Em and Triple Card Poker.

Poker at social casinos is a great way to learn the game and develop your poker skills without risking your money.

When looking at a poker site, our gambling experts play at every site before making recommendations, checking every social poker site for its design, features, customer service, and variety of poker games.

Other forms of gambling in Washington DC

Aside from sports betting and social casinos, there are other options in the Washington DC online gambling scene. Bettors in the district can participate in Lottery draws, and enjoy Daily Fantasy Sports. Find out more about these types of gambling below.

Lottery

The DC Lottery launched in August 1982 and is a part of the Multi-State Lottery Association, which lets it offer draws like the Powerball and Mega Millions. The Lottery has contributed over $2.22 billion to the Washington DC General Fund to help support child services, education, and other public services. You can buy cards from lottery retailers all over the district or buy tickets and scratch cards from its iLottery website.

Daily Fantasy Sports

The Federal government deemed Daily Fantasy Sports (DFS) to be games of skill and therefore exempt from the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA). While no legislation has passed to legalize DFS games in Washington DC, you can access many fantasy sports operators like FanDuel and DraftKings across the district. Popular DFS games include sports featuring major league Washington franchises like the NFL’s Washington Commanders.

Offline gambling in Washington DC: retail sportsbook venues

In many US states, online sportsbooks must partner with a land-based casino. These partnerships often lead to the creation of retail sportsbooks.

In May 2021, William Hill (now Caesars Sportsbook) opened a retail sportsbook in Capital One Arena, home of the Washington Wizards and Washington Capitals. It was the first sportsbook to operate in a professional sports venue in America.

BetMGM opened a retail sportsbook in Nationals Park in January 2022, home of the Washington Nationals baseball team. It was the country’s first retail sportsbook to launch in a Major League Baseball stadium.

FanDuel has announced it is building its retail sportsbook in Audi Field, the Major League Soccer stadium of DC United. Construction was completed by the end of 2022.

As well as betting venues in stadiums that operate under a Class A license, you can find betting kiosks in bars and restaurants across Washington DC.

Washington DC gambling and safety

Our dedicated team thoroughly assess all gambling sites recommended on this page to ensure it employs top player safety measures. We only highlight sites with reputable backgrounds. We expect Washington DC gambling sites to use SSL encryption, limit the involvement of third parties, and use well-known and trusted payment methods.

We only recommend sites that have relevant licensing. For example, we only include Washington DC sportsbooks regulated by the Office of Lottery and Gaming. We also check that those operators closely adhere to the strict data protection and player security standards set by regulators. So, any Class A licensed sportsbook in Washington DC must have a sports stadium partner.

FAQs

Sources

• https://taxfoundation.org/location/the-district-of-columbia/
• https://lottery.dc.gov/page/claiming-dc-lottery-prize/
• https://learn.valur.com/dc-income-tax-explained/
• https://www.pokernews.com/us-poker-map/district-of-columbia/