Virginia lawmakers are advancing new legislation that could reshape parts of the state’s gambling landscape, including how daily fantasy sports (DFS) platforms operate alongside Virginia sports betting.
The proposal would change how DFS operators are taxed and regulated, creating a clearer oversight framework while introducing a new revenue-based tax on participating companies.
Tax and Regulatory Changes
House Bill 145 passed a House subcommittee unanimously and is now under review by the House Appropriations Committee.
The bill would introduce a 10% tax on DFS revenue generated in Virginia, with 95% going to the state’s general fund and 5% directed to the Problem Gambling Treatment and Support Fund. It would also place oversight of DFS under the Virginia Lottery, giving the agency authority to issue permits, enforce compliance, and conduct investigations.
All operators would be required to obtain a state-issued permit valid for three years. A 90-day transition period would allow existing operators to continue offering contests while applying for the new permits.
Consumer Protections and Compliance
The legislation makes it clear that DFS contests must remain peer-to-peer and cannot operate as house-backed or “pick ’em” games that resemble traditional sports betting.
HB 145 also establishes rules for platform compliance, including:
- Verifying that participants are 21 or older
- Offering self-exclusion options
- Keeping player funds separate from operational accounts
- Maintaining sufficient reserves to cover prize
- Conducting annual independent audits
Operators who fail to comply or operate without a permit could face enforcement actions or penalties. Virginia first legalized daily fantasy sports in 2016, using a registration-based system without revenue taxation.
