Washington DC Skill Game Laws

Why Skill Games Are Legal: Skill vs. Gambling

The legality of skill game machines rests on a fundamental legal distinction. Under DC law (D.C. Code section 22-1704), illegal gambling requires three elements: a prize, paid consideration, and an outcome determined by chance. Skill game machines eliminate the third element because the outcome depends on the player’s ability rather than random chance.

D.C. Code section 36-641.01 defines a “Game of Skill Machine” as a mechanical or electronic gaming device that awards winners with cash, a gift card, or a voucher redeemable for cash, where the player’s skill — not chance or luck — is the determining factor in whether the player wins or loses.

The statute explicitly excludes devices where outcomes depend on prior win/loss ratios, external control, chance events beyond player action, hidden features, or unreasonably difficult skill requirements. D.C. Code section 36-641.02 declares that operating these machines is lawful when conducted in accordance with the subchapter and its implementing rules.

Regulatory Authority

Two agencies share oversight of skill game machines in DC:

• Office of Lottery and Gaming (OLG) — Handles manufacturer and distributor licensing, individual machine registration, the centralized accounting system, and enforcement. (D.C. Code sections 36-641.06, 36-641.07, 36-641.10, 36-641.13, 36-641.16)
• Alcoholic Beverage and Cannabis Administration (ABCA) — As of October 1, 2025 (under D.C. Act 26-146), ABCA handles all retail licensing for establishments operating skill game machines. (D.C. Code section 36-641.08)

The Office of the Chief Financial Officer (OCFO) handles taxation, revenue collection, and reporting rules under D.C. Code section 36-641.19.

License Types and Requirements

DC law establishes three license categories under D.C. Code section 36-641.03:

Manufacturer License (D.C. Code section 36-641.06)

• Application fee: $10,000 (nonrefundable)
• Annual renewal: $5,000
• Required for companies that manufacture skill game machines or cause them to be delivered into the District
• Applicants must submit corporate information, financial documentation, and undergo District and national (FBI) criminal background checks
• May only distribute machines to holders of valid distributor licenses

Distributor License (D.C. Code section 36-641.07)

• Application fee: $10,000 (nonrefundable)
• Annual renewal: $5,000
• Required for companies that buy, lease, sell, distribute, or service skill game machines in the District
• Must demonstrate that machines comply with District standards and undergo independent laboratory testing
• Cannot distribute more than 5 machines to any single licensed establishment
• Prohibited from providing loans or financial inducements to establishments to place machines

Retailer License (via ABCA)

• Games of Skill License: $300/year from ABCA
• Games of Skill Endorsement: $500/year from ABCA
• Must be an on-premises alcohol retailer licensed by the ABC Board
• As of October 1, 2025, Manufacturer Class A or B licensed venues no longer need a separate On-Site Sales and Consumption Permit
• Applications can be submitted by mail, email, or in person at ABCA offices
• All persons holding 10% or greater beneficial ownership interest must be approved for licensure

Machine Registration (D.C. Code section 36-641.10)

• Registration fee: $100 per machine (one-time)
• Replacement sticker: $75
• Each machine must be registered with OLG and display a valid registration sticker at all times

Complete Fee Summary

Eligible Establishments

Only venues holding an on-premises Alcohol License from ABCA are eligible to operate skill game machines (D.C. Code section 36-641.10). This includes:

• Bars and pubs
• Restaurants
• Taverns
• Nightclubs
• Hotels
• Multipurpose facilities

Location and Placement Rules

• Machines may only be placed in locations approved by ABCA within the retailer’s licensed premises (D.C. Code section 25-786)
• Outdoor placement requires separate Board approval
• Maximum of 5 machines per licensed establishment at any time (D.C. Code section 36-641.10)
• Retailers must post signage at entry points to machine areas

Player Requirements

• Players must be at least 18 years old (D.C. Code section 36-641.12)
• Staff must check government-issued ID when individuals enter the gaming area (D.C. Code section 25-786)
• ID must be checked again when cashing out winnings
• Establishments cannot permit individuals who appear intoxicated or under the influence of a narcotic or other substance to play (D.C. Code section 25-786)
• Violations of the age requirement may result in license suspension or revocation and fines (D.C. Code section 36-641.15)

Security and Compliance Requirements

D.C. Code section 25-786 establishes detailed security obligations for establishments operating skill game machines:

Security Cameras

• Must maintain operational security cameras with 30-day recording capability
• Camera coverage must include gaming areas, cash processing locations, and money storage spaces

Staffing

• Must designate staff to monitor gaming areas during operating hours

Required Signage (D.C. Code section 36-641.10)

A warning sign must be posted in a clearly visible place at the entry to gaming areas containing:

• Minimum playing age (18)
• DC gambling hotline contact information
• OLG complaint contact information (for complaints against manufacturers, distributors, or retailers)

Display Requirements

• Each machine must display an OLG registration sticker
• The retailer’s license must be displayed at the establishment and immediately available for inspection

Machine Technical Standards

Under D.C. Code section 36-641.09, all skill game machines must meet the following requirements:

• Must be tested and approved by an OLG-approved independent testing laboratory
• Must conform to FCC Class A emissions standards and all applicable federal law
• Must display an accurate representation of the game outcome
• Cannot automatically alter pay tables or have means of manipulation that affect probabilities
• Must be protected against static discharge and electromagnetic interference
• Must provide access to complete play history for the previous 10 games
• Must have non-resettable locked meters storing data for a minimum of 180 days after power loss
• Must maintain electronic records tracking cash inserted, winning tickets awarded, credits played, credits awarded, and player payback percentages

Centralized Accounting System

Under D.C. Code section 36-641.13, all machines must be connected to OLG’s centralized accounting system via a communications network. This system enables accounting, reporting, monitoring, and reading of machine activities, and allows OLG to remotely activate and deactivate machines. The system does not monitor or read personal or financial information of patrons.

Taxation

Under D.C. Code section 36-641.19:

• The District imposes a 10% tax on gross revenue per machine
• Gross revenue is defined as total cash received minus: cash paid to players as winnings, cash paid to purchase annuities for prizes payable over time, and the actual cost of personal property distributed to players
• Filing deadline: Monthly returns are due on or before the 20th calendar day of each month, reporting the preceding month’s revenue and tax liability
• All tax revenues must be held in trust at a federally insured depository institution within DC until transferred to the District Treasurer
• Non-payment triggers collection mechanisms under DC Title 47 (Chapters 41–44)

Prohibited Conduct

• Distributors may not provide loans or financial inducements to establishments to place machines (D.C. Code section 36-641.07), though they may fund player winnings payouts
• Revenue sharing between alcohol sales and machine manufacturers or distributors is prohibited unless the Board approves the manufacturer/distributor as a license owner (D.C. Code section 25-786)
• Permitting minors to play is a violation subject to license suspension or revocation (D.C. Code section 36-641.12)
• Permitting intoxicated individuals to play is prohibited (D.C. Code section 25-786)

Consumer Protections

• Voluntary exclusion program: Players may self-exclude from playing skill game machines under D.C. Code section 36-641.18
• Machines must display accurate game outcomes and cannot have hidden features or unreasonably difficult skill requirements
• The centralized accounting system specifically cannot monitor patron personal or financial information
• Age verification is required at entry and at cash-out

Enforcement and Penalties

Under D.C. Code sections 36-641.15 and 36-641.16:

• OLG, ABCA, and the Metropolitan Police Department may all enforce skill game laws
• The Office may issue civil violation citations
• The Office may request and check identification of any person playing or attempting to play
• Evidence of violations may be seized, including tickets, vouchers, cash, and fake IDs
• Licenses can be suspended or revoked, and fines may be assessed
• OLG must notify ABCA of any enforcement actions against licensed establishments
• Appeals of enforcement actions may be filed under D.C. Code section 36-641.17

Our Machine Partners

We work with DC-licensed skill game manufacturers:

• Banilla Games — Premium skill game cabinets with engaging gameplay mechanics, HD displays, and commercial-grade durability.
• JVL Entertainment — Industry-leading countertop and upright multi-game skill terminals with touchscreen technology.

Approved Distributors

• Entertainment Experts
• Amuse-O-Matic
• Lux Entertainment
• Capital Games, LLC

Legislative Timeline

DC Code Reference

The following sections of D.C. Code Title 36, Chapter 6, Subchapter III govern skill game machines: