Gambling and Fantasy Sports Regulation

Virginia state Sen. Adam Ebbin, a Democrat from Alexandria, has introduced the Fantasy Contests Act, which would levy a 10% tax on fantasy sports revenue generated from games played in the Commonwealth and require operators to register with the Virginia Department of Agriculture and obtain permits. Under the proposal, 5% of the tax take would be earmarked for the state’s problem‑gambler treatment fund, with the remaining 95% flowing into the general fund, while the Virginia Lottery would be given rulemaking and oversight authority over daily fantasy sports. The bill is one of several tax and regulatory measures being advanced by Virginia’s Democratic legislative majority, alongside proposals to tax ammunition purchases, home‑delivery services and certain investment income, drawing fire from Republicans and anti‑tax advocates who argue the package contradicts Democrats’ "affordability" messaging. Americans for Tax Reform warns that the fantasy‑sports tax would likely be passed on to players through smaller prize pools, higher fees and fewer promotions, and questions why a product often marketed as skill‑based is being treated like a gambling 'vice.' Similar legislation to tax and regulate fantasy contests in the 10–15% range is under discussion in other states, including Illinois, signaling that Virginia’s move could help set a template for how states treat fantasy sports as part of their broader gambling and tax regimes.