Induced drag is not really about spanwise flow. It is about the spanwise load distribution. The closer your spanwise load distribution is to elliptical, the lower your induced drag.
Washout will un-load the tips. So, if your load distribution is super-elliptical at the tips, then washout will reduce induced drag. However, if your load distribution is sub-elliptical at the tips, then washout will increase induced drag.
We also use washout to prevent tip stall. If a wingtip is highly loaded, it is more likely to stall at the tips first -- which is bad.
The difference in these is that when we're talking about induced drag, we're looking at the load distribution $l=q\,c\,c_l$ in terms of lbs/ft.
However, when we're thinking about local stall, we're just thinking about the local lift coefficient $c_l$ and how it compares to the local $c_{l,\mathrm{max}}$.
Since $q$ (dynamic pressure) is the same across the wing, the difference between the two is the local chord $c$. For induced drag, we care about the distribution of $c\,c_l$ being elliptical. For stall, we care about local $c_l$ staying away from stall.
The sweep of the wing has a significant effect on the spanwise load distribution. Sweep tends to load up the tips.
In addition, the amount of taper in the wing has a significant role to play.
Consequently, straight wings tend to have taper ratios of about 0.5 to 0.6 -- and swept wings tend to have taper ratios of 0.4 or less.