The Legalization of Online Gambling in Washington D.C.

April 27th, 2011

During the week of April 4th, 2011, Washington, D.C. became the first jurisdiction in the United States to legalize online gambling. Washington Mayor Vincent C. Gray signed a law approving the city’s budget for 2011 which included revenues from online gambling organizations. Congress had a time period to object to the plan but has since expired. Since then the Executive Director of the D.C. Lottery has developed plans for the implementation of online gambling.

Operated by the D.C. Lottery

The activity would fall under the jurisdiction of the D.C. Lottery which has created a contract with Intralot USA that would split the revenue with them 50-50. In turn, Intralot will be managing and operating the online gambling website which is scheduled to go live July 1st, 2011 for free play.

Full Participation by the End of 2011

Residents of Washington D.C. will be able to participate in real money games by September 1st, 2011 at a number of “hot spots” across the city. There will be an estimated 30 hot spots which allow players to gamble. One such location is the Convention Center. Other likely localities include bars, clubs and hotels. However, to place bets players would be required to bring their own computers.

Location is the Major Issue for in-house Gaming

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Before online gambling in D.C. reaches player’s residences, there is one major hurdle to overcome: location. Administrators must be sure that they have the technology to restrict online gambling to those living in the Washington, D.C. city limits. This technology is expected to be implemented by the end of 2011.

An Interview with Mayor Gray

Mayor Gray told the Washington Post that many D.C. residents already engage in online gambling with the profits being sent to overseas companies. Therefore, the objective of the passing of this bill is to provide regulated online gambling thus keeping the profits in the United States while giving the city its fair share of financial benefits. The implementation of online gambling is expected to show the generation of $13.1 million in revenue between 2012 and 2014.

Since Washington, D.C. is the city that politically runs the United States, this is a major breakthrough for the online gambling community. If this endeavor is successful, other cities across the United States are sure to follow suit. This could be the beginning of the full regulation of online gambling in the United States.

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