VirginiaSB1292026 Regular SessionSenateWALLET

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

Sponsored By: Adam P. Ebbin (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 HB 145.

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 2 benefits, 2 costs, 4 mixed.

Fantasy operators pay tax and fees

Operators pay a 10% revenue tax plus a 2.6% regulation fee monthly, by the next month’s 20th day. Revenue equals entry fees minus prizes, multiplied by Virginia players’ share of total entry fees, rounded to the nearest tenth of a percent. Operators must document tax corrections with the next month’s payment. Of tax receipts, 2.5% goes to problem-gambling services and 97.5% goes to the General Fund. Regulation fees cover Lottery costs, with any excess going to the General Fund.

Fantasy players gain safeguards and limits

Players must be at least 21, and operators must verify age, support self-exclusion, and disclose and enforce entry limits. Operators, employees, and their household relatives cannot enter the operator’s cash-prize contests; certain team-linked players also face limits. Operators must protect confidential information, prevent its misuse, separate player money from business money, and keep enough reserves to pay prizes. Each operator must submit annual independent accountant audits and safeguard checks by a Lottery-recognized testing laboratory. Operators cannot present their permits as state endorsement, and contests must rely on skill-based accumulated statistics rather than single-team or single-athlete outcomes.

Self-exclusion covers fantasy and other gaming

Virginia’s voluntary exclusion program covers account-based lottery games, sports betting, casinos, charitable gaming, fantasy contests, and horse-racing wagers. People can choose exclusion for two years, five years, or life. Enrolled people agree not to enter fantasy contests unless Lottery Board rules provide an exception. Exclusion lists are confidential but can be shared with gaming providers and enforcement parties. Marketing to excluded people must stop, but exclusion does not erase debts owed before enrollment.

More funding for problem-gambling help

Required fantasy contest deposits go into Virginia’s Problem Gambling Treatment and Support Fund. This includes initial $50,000 application fees and 2.5% of fantasy contest tax receipts. The fund supports counseling, treatment, prevention, and grants to groups helping people with problem gambling. Unspent money stays in the fund rather than returning to the General Fund.

Lottery takes over fantasy contest rules

Virginia replaces the former Fantasy Contests Act with a new Lottery-run system. Existing regulations stay in force under the agriculture department until the Lottery Board issues replacements, due by January 1, 2029. Operators with valid registrations issued before the law’s effective date can continue until the Lottery approves or denies their permit applications. Lawful fantasy contests are exempt from specified gambling and gaming-contract laws, and their prizes are not treated as gaming-contract money. These exemptions do not extend to sports betting regulated under Virginia’s sports betting law.

Fantasy rulebreakers face penalties and suspensions

The Lottery can investigate, require written statements, subpoena evidence, and seek court orders; fantasy rules also enter state police gaming-enforcement duties. After at least 15 days’ notice and a hearing, operators face permit suspension, revocation, or penalties up to $1,000 per day per violation, capped at $50,000 per case. Monetary penalties require proof that a violation more likely than not occurred; emergency suspensions can last up to seven days. Knowing violations can also bring separate civil penalties up to $1,000 each, recovered in court and paid to the Literary Fund. Knowingly and willfully hiding material facts or making false statements in permit applications is a Class 1 misdemeanor.

Fantasy permits public, sensitive records private

The public can inspect fantasy contest permits, with copies costing up to $1 per page. Specified audit, application, and renewal records about operators’ character or financial responsibility remain confidential and exempt from public-records requests. These protections also cover principal stockholders, defined as holding at least 15% equity or voting control.

Fantasy operators need permits and fees

Fantasy contest operators need Lottery permits lasting three years, with required application information and proof they meet the law’s standards. Nonrefundable fees are $50,000 for initial applications and $25,000 for renewals; renewal applications and fees are due 60 days before expiration. Complete applications have a 60-day permit deadline, and renewal decisions are due within 30 days. Operators applying or renewing can continue while applications are pending unless the Lottery orders a suspension. Anyone acquiring actual control must apply for a permit; acquisitions without prior Lottery approval can lead to suspension or compliance orders.

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

House vote • 3/4/2026

Passed House with substitute

Yes: 91 • No: 7

Senate vote • 3/4/2026

House substitute rejected by Senate

Yes: 0 • No: 40

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

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote • 2/11/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • 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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