Virginia democrats want to tax your fantasy football league

Virginia bill seeks to tighten oversight and taxation of fantasy sports operators

RICHMOND, Va. – Virginia lawmakers are considering a major overhaul of the state’s Fantasy Contests Act, introducing new licensing rules, oversight measures, and a dedicated tax structure aimed at regulating the fast-growing online fantasy sports industry. House Bill 145, introduced by Delegate Paul Krizek, was prefiled January 5 and referred to the Committee on General Laws.

The proposed legislation replaces the state’s current fantasy sports registration process with a more rigorous permit-based system overseen by the Department of Agriculture and Consumer Services. Operators offering fantasy contests to Virginia players would be required to obtain a three-year permit, pay a $50,000 application fee, and submit extensive background, financial, and operational disclosures. The Department would review applications within 60 days and could suspend or revoke permits for violations.

Under the bill, operators would also pay a 10 percent tax on fantasy contest revenue, defined as total entry fees minus winnings, adjusted for the percentage of play occurring in Virginia. Of that tax, five percent would support the Problem Gambling Treatment and Support Fund, while 95 percent would flow into the state’s general fund. The new tax replaces the existing fee-based structure and adds monthly reporting requirements for operators.

The legislation mandates stronger consumer protections and responsible gaming standards. Operators would have to verify that all players are 21 or older, prohibit employees or insiders from participating in public contests, allow players to self-exclude, and maintain segregated accounts to ensure prize payments. Independent audits and annual compliance testing by certified firms would also be required.

House Bill 145 further updates state recordkeeping and transparency laws, ensuring certain operator data remains confidential under the Virginia Freedom of Information Act, while granting the Department authority to publicly disclose permit and enforcement information.

The bill also ties the fantasy sports framework to broader gambling policy in Virginia. It directs portions of fantasy tax revenue toward addiction prevention programs and amends the Problem Gambling Treatment and Support Fund statute to include funding from the new fantasy contest tax.

If passed, current operators registered under existing law could continue offering fantasy contests while their new applications are pending, provided they comply with all updated requirements.

Key points:

HB 145 replaces fantasy sports “registrations” with three-year operating permits issued by the Department of Agriculture and Consumer Services.
A new 10 percent tax on fantasy contest revenue would fund the state’s general fund and gambling treatment programs.
The bill strengthens consumer protections, mandates audits, and increases penalties for violations to modernize Virginia’s oversight of fantasy sports.

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