VirginiaSB1292026 Regular SessionSenateWALLET

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

Sponsored By: Adam P. Ebbin (Democratic)

Became Law

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 HB 145.

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 2 costs, 2 mixed.

New taxes and fees for fantasy operators

Operators pay a 10% tax on fantasy contest revenue each month, due by the 20th of the next month. Of those taxes, 2.5% goes to the state’s problem gambling fund and 97.5% to the general fund. Operators also pay a 2.6% monthly administrative fee to fund regulation. A nonrefundable $50,000 initial permit fee applies, and a $25,000 nonrefundable renewal fee applies every three years. Renewal applications are due at least 60 days before expiration, and the Department decides within 30 days.

Permits and player-safety rules for operators

You cannot run fantasy contests without a Department permit; permits last three years. Transfers of control require an application. To be permitted, you must verify players are 21+, block prohibited and self-excluded players, limit entries, keep player funds separate, hold a prize reserve, and stop insiders and contest subjects from entering related contests. Each year, you must submit an independent CPA audit and a test report from a recognized lab. Issued permits are open to public inspection, with copies up to $1 per page. You cannot market your permit as a state endorsement.

Penalties and appeals for fantasy operators

The Department can suspend or revoke a permit after at least 15 days’ notice and a hearing. It can fine up to $1,000 per day per violation, capped at $50,000, and can summarily suspend for up to seven days with a prompt hearing. Anyone who knowingly breaks the rules faces up to $1,000 per knowing violation, with penalties paid into the Literary Fund. If you are aggrieved by a Department action, you can seek review in Richmond Circuit Court under the Administrative Process Act.

Help for problem gamblers and self-exclusion

The state created a fund to pay for counseling, prevention, and grants that help people with gambling problems. A voluntary exclusion program lets you block yourself from account-based lottery games, sports betting, casinos, charitable gaming, fantasy contests, and horse race wagering. You can choose a two-year, five-year, or lifetime exclusion. Your identity stays confidential. Sales agents and operators must try to stop direct marketing to self-excluded people, but they may contact you to collect debts made before you enrolled.

Smooth shift to Lottery oversight and rules

Operators with a valid Agriculture registration may keep offering fantasy contests until the Lottery approves or denies their new permit. Existing Agriculture regulations stay in force and are administered by that Department until the Lottery Board issues new rules. The old fantasy contests chapter is repealed, moving oversight into the Lottery framework. The Lottery Board must adopt needed regulations by January 1, 2029, using a streamlined process with a 30-day public comment period.

More privacy for gaming investigations and records

Audit reports and certain permit application records about an operator’s or owners’ character and finances are confidential and not released under FOIA. Until July 1, 2026, listed agencies can withhold specified investigatory materials, with required redactions. Starting July 1, 2026, a new law section continues to exclude those investigatory records from mandatory disclosure, while allowing custodians to release them at their discretion and with required redactions.

Sponsors & Cosponsors

Sponsor

  • Adam P. Ebbin

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 380 • No: 81

Senate vote 3/13/2026

Conference report agreed to by Senate

Yes: 26 • No: 12

House vote 3/13/2026

Conference report agreed to by House

Yes: 88 • No: 7

Senate vote 3/4/2026

House substitute rejected by Senate

Yes: 0 • No: 40

House vote 3/4/2026

Passed House with substitute

Yes: 91 • No: 7

Senate vote 3/4/2026

Senate acceded to request Block Vote

Yes: 40 • No: 0

House vote 2/27/2026

Reported from Appropriations

Yes: 22 • No: 0

House vote 2/24/2026

Reported from General Laws with substitute and referred to Appropriations

Yes: 20 • No: 0

Senate vote 2/13/2026

Read third time and passed Senate

Yes: 29 • No: 10

Senate vote 2/12/2026

Finance and Appropriations Substitute agreed to

Yes: 0 • No: 0

Senate vote 2/11/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/11/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote 2/10/2026

Reported from Finance and Appropriations with substitute

Yes: 9 • No: 5 • Other: 1

Senate vote 1/28/2026

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

Yes: 15 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0566)

    4/13/2026Governor
  2. Approved by Governor-Chapter 566 (effective 7/1/2026)

    4/13/2026Governor
  3. Fiscal Impact Statement from Department of Planning and Budget (SB129)

    4/2/2026Senate
  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

    3/31/2026Senate
  6. Signed by Speaker

    3/31/2026House
  7. Bill text as passed Senate and House (SB129ER)

    3/30/2026Senate
  8. Enrolled

    3/30/2026Senate
  9. Signed by President

    3/30/2026Senate
  10. Fiscal Impact Statement from Department of Planning and Budget (SB129)

    3/27/2026Senate
  11. Conference report agreed to by Senate (26-Y 12-N 0-A)

    3/13/2026Senate
  12. Conference report agreed to by House (88-Y 7-N 0-A)

    3/13/2026House
  13. Conference Report released

    3/13/2026
  14. House Conferees: Krizek, McClure, Wiley

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

    3/4/2026House
  16. Senate acceded to request Block Vote (40-Y 0-N 0-A)

    3/4/2026Senate
  17. House requested conference committee

    3/4/2026House
  18. House insisted on substitute

    3/4/2026House
  19. House substitute rejected by Senate (0-Y 40-N 0-A)

    3/4/2026Senate
  20. Passed House with substitute (91-Y 7-N 0-A)

    3/4/2026House
  21. Engrossed by House - committee substitute

    3/4/2026House
  22. committee substitute agreed to

    3/4/2026House
  23. Read third time

    3/4/2026House
  24. Moved from Uncontested Calendar to Regular Calendar

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

    3/4/2026Senate

Bill Text

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