Category Archives: Washington, D.C.

D.C. Lottery Modernization Plan involves free-play “Internet Demonstration Games”

The D.C. Lottery has launched a new website with substantial information related to its plan to operate internet gaming within the territorial limits of Washington, D.C.

Researchers can find within the i-gaming section of the new website:

• The text of the Lottery Modernization Act (enacted as part of Fiscal Year 2011 Supplemental Budget Support Act of 2010 and codified at D.C. Code § 3-1313),
• Details of D.C. Lottery’s plan for “Internet Demonstration Games” as published in the D.C. Register on June 17, 2011 (Vol. 58 – No. 24),
• A simplified FAQ about the i-gaming plan, and
• Various documents related to gathering questions and comments from the public, including procedure and agenda for the community outreach meetings beginning this month in each of the city’s eight wards.

According to the Lottery and Charitable Games Control Board Notice of Proposed Rulemaking on June 17, the Lottery will at first limit its endeavors to free-play wagering with points or credits made available to players free of charge. The first set of games the Lottery plans to run includes Victory at Sea, Blackjack, Texas Hold’em, Bingo, Electronic Instant Tickets, and Random Number Generated Games.

For the Bettor Good commends D.C. Lottery for making this information so easily available.

“Lottery Modernization” meetings postponed in D.C.

Although Washington D.C.’s “Lottery Modernization Act of 2010” has already been enacted into law, the D.C. Lottery has delayed implementing its plan for internet gambling in order to provide an opportunity for input from residents of the city.

Prior to the law’s enactment, public input was virtually non-existent. City of D.C. Council Member Michael Brown achieved enactment in December 2010 by attaching it to a larger bill amending the City’s 2011 budget plan. It is alleged that other Council Members hardly discussed the lottery provisions before approving the budget amendment, and some later claimed to be totally unaware they had enacted an internet gambling law.

Following a bit of public furor, the City Council held an informational hearing on June 29 at which several Members expressed disapproval. The D.C. Lottery responded by announcing a series of “community outreach meetings” to take place this month in each of the city’s eight wards. Recently D.C. Lottery postponed the meetings until next month because residents have complained that too few of them remain in the city during August.

The Lottery Modernization Act permits internet gambling by way of an amendment to the D.C. Official Code sections which deal with lotteries and number games. The definition of “a lottery or lottery games” now includes “games of skill and games of chance,” which can be operated on the internet as long as D.C. Lottery can verify customers’ location within the city.

The following is the text of the legislation approved by the D.C. Council as part of Bill 18-1100:

SUBTITLE J. LOTTERY MODERNIZATION ACT

Sec. 791. Short title.

This subtitle may be cited as the “Lottery Modernization Act of 2010.”

Sec. 792. The Law to Legalize Lotteries, Daily Numbers Games, and Bingo and Raffles for Charitable Purposes, effective March 10, 1981 (D.C. Law 3-172; D.C. Official Code § 3-1301 et seq., and 22-716 et seq.), is amended as follows.

(a) § 3-1313 is amended by adding a subsection (a) to read as follows:

“A lottery or lottery game is both games of skill and games of chance that are operated by and for the benefit of the District of Columbia by the Lottery and Charitable Games Control Board, however (i) where such games of skill and games of chance are offered via the internet, any technology employed for such play must confirm the play to be at all times within the District, provided however, such restriction shall not apply to the conduct of Fantasy Sports and sweepstakes style games, where such games are lawful, and (ii) that no method, media, or device for play of these games of skill and games of chance can violate the Johnson Act (15 U.S.C. 1171 et seq.) or any other federal statute.”

(b) The existing language in § 3-1313 shall be renumbered as subsection (b).

(c) a new subsection (c) is added to read as follows:

“The Board, through the Chief Financial Officer, pursuant to Title 1 of the District of Columbia Administrative Procedure Act, approved October 21, 1968 (82 Stat. 1204; D.C. Official Code § 2-501 et seq.), may issue rules to implement the provisions of this section, and may establish which games may be offered and additional terms and conditions for the conduct of the games not inconsistent with subsection (a) of this section, including the percentage of wagered amounts to be retained by the Board, minimum and maximum wagers, and time limitations for the games

Click here for the full text of the budget amendment in .pdf format: Bill 18-1100 (Lottery Modernization Act begins at page 36)

For more background, see:

Press Release: D.C. Lottery Reschedules iGaming Community Outreach Meetings

The Washington Times: D.C. Lottery schedules public meetings on online gambling

D.C. Lottery Modernization Delays

Confusion abounds in Washington D.C. following a June 29 hearing on i-gaming issues. The hearing was called to discuss legislation that was enacted in December after being stealthily attached to a budget bill by Council member Michael Brown, who now finds himself the subject of conflict of interests questioning.

Apparently the provisions related to i-gaming had never been discussed by the Council, and several Council members now claim they didn’t even know what they had enacted. Although it is true that there never was a hearing or public debate until now, it would be quite shocking if Council members hadn’t known about the legislation.

“Maybe some people didn’t read the budget,” says Brown.

The law, if followed through, would enable the city of Washington D.C. to operate games within its borders, making it the very first district in the U.S. to do so. The city’s Attorney General Irvin B. Nathan appeared at the hearing to say he believed the plan complied with federal law. Nathan also said he has sought the federal Justice Department’s opinion but has not yet received a response.

For further details, see the following articles in the Washington Post:

D.C. Council challenges plans for rolling out virtual casino

D.C. plans to launch online casino

DC readies nation’s first government-run online poker operation, and stakes will be low