Virginia lawmakers advance bill to tax fantasy sports revenue
A House subcommittee has approved legislation to impose a 10 per cent tax on fantasy sports revenue.
US.- A House subcommittee in Virginia has voted in favour of House Bill 145, which seeks to update the state’s Fantasy Contests Act. The bill introduced by Delegate Paul Krizek was approved in a 9-0 vote and will now move to the Appropriations Committee.
Under the proposal, operators would be subject to a 10 per cent tax on their adjusted gross revenue. The bill specifies that 95 per cent of the proceeds would be allocated to the state’s General Fund, while the remaining 5 per cent would go to the Problem Gambling Treatment and Support Fund.
If approved, the bill would also empower the Virginia Lottery to oversee the sector, granting it the authority to issue licences, conduct investigations and enforce compliance. Operators would be required to hold a permit valid for three years.
The bill also mandates enhanced consumer protection measures, including a minimum age of 21 for participants, the segregation of player funds and annual independent audits.
The text defines fantasy contest as including “any online fantasy or simulated game or contest with an entry fee in which (i) two or more fantasy contest players compete against each other; (ii) the value of all prizes and awards offered to winning participants players is established and made known to the participants players in advance of the contest; (ii) (iii) all winning outcomes reflect the relative knowledge and skill of the participants players and shall be determined by accumulated statistical results of the performance of individuals, including athletes in the case of sports events; and (iii) (iv) no winning outcome is based on the score, point spread, or any performance of any single actual team or combination of teams or solely on any single performance of an individual athlete or player in any single actual event; and (v) no player competes against the fantasy contest operator.”
