VirginiaHB1452026 Regular SessionHouseWALLET

Fantasy contests; regulation and taxation, civil penalty, repeals Fantasy Contests Act.

Sponsored By: Paul E. Krizek (Democratic)

Signed by Governor

Summary

Fantasy contests; regulation and taxation. Imposes (i) a 10 percent tax on a fantasy contest operator's fantasy contest revenue, with 2.5 percent of the tax revenue being allocated to the Problem Gambling Treatment and Support Fund and the remaining 97.5 percent being allocated to the general fund, and (ii) a 2.6 percent fee on a fantasy contests operator's fantasy contest revenue to be utilized by the Virginia Lottery to cover the costs of administration and regulation of fantasy contests in the Commonwealth. The bill also limits the definition of "fantasy contest" and requires fantasy contest operators to apply to the Virginia Lottery for a permit before offering any fantasy contest in the Commonwealth. This bill is identical to SB 129.

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 2 benefits, 3 costs, 4 mixed.

Qualifying fantasy contests gain legal protection

Fantasy contests that follow the new law are exempt from the specified gambling-law restrictions. Covered contests need at least two players, prizes announced in advance, and skill-based outcomes using accumulated statistics rather than single-event performance. Players cannot compete directly against the operator. Prize money from qualifying contests is not treated as part of a gaming contract. These protections do not extend to separately regulated sports betting.

Dedicated funding supports problem gambling treatment

Required fantasy-contest deposits go into Virginia’s Problem Gambling Treatment and Support Fund. The fund pays for counseling, support, treatment development, prevention programs, and grants to groups helping people with problem gambling. Money and interest remain in the fund rather than reverting to the general fund. The law provides no total funding amount or individual cash payment.

Fantasy operators pay new permit fees

Fantasy operators pay a nonrefundable $50,000 initial permit application fee, which goes to the problem gambling fund. Renewals cost a nonrefundable $25,000, with the application and payment due at least 60 days before expiration. Renewal fees support administration of the fantasy-contest rules. Other fees, charges, and monetary penalties generally support administration through a special state fund, subject to statutory exceptions.

Fantasy operators face fines and suspension

After at least 15 days’ notice and a hearing, proven violations can lead to permit suspension, revocation, or monetary penalties. Penalties can reach $1,000 per day per violation, capped at $50,000. Emergency action to protect public health, safety, and welfare allows suspension for up to seven days pending a hearing and decision. Separate civil penalties can reach $1,000 per violation, recovered through a civil action and paid into the Literary Fund. Knowingly and willfully hiding important facts or making false statements in permit applications is a Class 1 misdemeanor.

Fantasy operators owe monthly tax and fees

Operators pay a 10% tax plus a 2.6% regulatory fee on fantasy revenue tied to Virginia players. Revenue equals entry fees minus player payouts, multiplied by the share tied to players located in Virginia. Both payments are due by the 20th of the next month; tax corrections must be documented with the following month’s payment. The state sends 2.5% of tax receipts to problem gambling services and 97.5% to the general fund. Regulatory fees cover administration and regulation, with any remainder going to the general fund.

Players can choose lasting gambling bans

The Lottery Board must offer voluntary exclusion from account-based lottery games, regulated sports betting, casino games, and charitable gaming. You can choose a two-year, five-year, or lifetime exclusion. You generally cannot ask to leave early, though Board rules can allow exceptions or removal procedures. Your information stays confidential, and lottery agents and casinos must reasonably try to stop direct marketing to you. Enrollment does not cancel debts incurred before joining.

Fantasy records gain privacy but limit access

Audit reports and related documents are confidential, along with application records about operators’ or principal stockholders’ character or financial responsibility. These records are exempt from required disclosure under Virginia’s public records law. Beginning July 1, 2026, Lottery investigations of fantasy applicants, licensees, and permit holders are also exempt from required disclosure. Permits themselves remain open for public inspection. The Department can charge up to $1 per page for copies.

Fantasy operators move to Lottery oversight

The law replaces the former Fantasy Contests Act with Lottery Board oversight, while existing agriculture department rules remain until replacement rules begin. The Board must adopt rules by January 1, 2029, after publishing proposals and allowing 30 days for public comments. The Lottery must accept permit applications after adopting those rules. Operators registered before the law took effect can continue while their applications are pending, until approval or denial. Anyone acquiring actual control of a permitted operator must apply for a permit; acquisitions without prior approval can trigger suspension or compliance orders.

Fantasy players gain safeguards and age limits

Fantasy businesses need three-year permits; the Department must decide initial applications within 60 days and renewals within 30 days. Applicants must disclose ownership, integrity, and operating information, and can operate during review unless ordered to stop. Operators must verify players are at least 21, restrict certain insiders and athletes from playing, and enforce self-exclusion and entry limits. They must protect private information, keep player money separate with adequate reserves, and submit annual independent accountant audits and testing-lab safeguard reports. Operators cannot use their permits to suggest that Virginia endorses them.

Sponsors & Cosponsors

Sponsor

  • Paul E. Krizek

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 394 • No: 138

House vote • 3/14/2026

Conference report agreed to by House

Yes: 87 • No: 8

Senate vote • 3/14/2026

Conference report agreed to by Senate

Yes: 26 • No: 13

Senate vote • 3/4/2026

Passed Senate with substitute

Yes: 27 • No: 13

House vote • 3/4/2026

Senate substitute rejected by House

Yes: 0 • No: 93

Senate vote • 3/4/2026

Senate insisted on substitute Block Vote

Yes: 39 • No: 0

Senate vote • 3/4/2026

Finance and Appropriations Substitute agreed to

Yes: 0 • No: 0

Senate vote • 3/3/2026

Reported from Finance and Appropriations with substitute

Yes: 12 • No: 3

Senate vote • 3/3/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 3/3/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • No: 0

Senate vote • 2/25/2026

Reported from General Laws and Technology and rereferred to Finance and Appropriations

Yes: 15 • No: 0

House vote • 2/17/2026

Read third time and passed House

Yes: 89 • No: 8

House vote • 2/11/2026

Subcommittee recommends reporting

Yes: 7 • No: 0

House vote • 2/11/2026

Reported from Appropriations

Yes: 22 • No: 0

House vote • 1/29/2026

Reported from General Laws and referred to Appropriations

Yes: 21 • No: 0

House vote • 1/27/2026

Subcommittee recommends reporting and referring to Appropriations

Yes: 9 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0565)

    4/13/2026Governor
  2. Approved by Governor-Chapter 565 (effective 7/1/2026)

    4/13/2026Governor
  3. Fiscal Impact Statement from Department of Planning and Budget (HB145)

    4/2/2026House
  4. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/31/2026Governor
  5. Enrolled Bill communicated to Governor on March 31, 2026

    3/31/2026House
  6. Signed by Speaker

    3/31/2026House
  7. Bill text as passed House and Senate (HB145ER)

    3/30/2026House
  8. Enrolled

    3/30/2026House
  9. Signed by President

    3/30/2026Senate
  10. Fiscal Impact Statement from Department of Planning and Budget (HB145)

    3/27/2026House
  11. Conference report agreed to by Senate (26-Y 13-N 0-A)

    3/14/2026Senate
  12. Conference report agreed to by House (87-Y 8-N 0-A)

    3/14/2026House
  13. Conference Report released

    3/13/2026
  14. Fiscal Impact Statement from Department of Planning and Budget (HB145)

    3/9/2026House
  15. House Conferees: Krizek, McClure, Wiley

    3/4/2026House
  16. Conferees appointed by House

    3/4/2026House
  17. House acceded to request

    3/4/2026House
  18. Senate insisted on substitute Block Vote (39-Y 0-N 0-A)

    3/4/2026Senate
  19. Senate substitute rejected by House (0-Y 93-N 0-A)

    3/4/2026House
  20. Passed Senate with substitute (27-Y 13-N 0-A)

    3/4/2026Senate
  21. Finance and Appropriations Substitute agreed to

    3/4/2026Senate
  22. Committee substitute printed 26109028D-S1

    3/4/2026Senate
  23. Senate Conferees: McPike, Carroll Foy, Reeves

    3/4/2026Senate
  24. Conferees appointed by Senate

    3/4/2026Senate
  25. Senate requested conference committee

    3/4/2026Senate

Bill Text

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