Virginia Democrats Propose 10% Tax on Fantasy Sports Revenue

New bill would require fantasy sports operators to register and pay tax to state's general fund and problem-gambling treatment program.

Published on Feb. 7, 2026

Got story updates? Submit your updates here. ›

The Virginia state legislature, now under Democratic control, has introduced a bill that would impose a 10% tax on revenue from fantasy sports contests played within the Commonwealth. The bill, authored by Sen. Adam Ebbin, D-Alexandria, would allocate 5% of the tax revenue to the state's problem-gambling treatment fund, with the remaining 95% going to the general fund. The legislation also requires fantasy sports operators to register with the Virginia Department of Agriculture and obtain a permit before offering games to residents.

Why it matters

This tax proposal is part of a broader slate of new taxes being considered by Virginia's Democratic majority, including taxes on ammunition purchases, home delivery services, and investment income. Critics argue the fantasy sports tax will ultimately be passed on to consumers through reduced prize pools, higher entry fees, and less competition in the market.

The details

The Fantasy Contests Act would require fantasy sports contest operators to register with the Virginia Department of Agriculture and obtain a permit before offering any games to people in the Commonwealth. The 10% tax on fantasy sports revenue would be split, with 5% going to the state's problem-gambler treatment fund and the remaining 95% going to the state's general fund.

  • The bill was introduced in the current 2026 legislative session by Sen. Adam Ebbin, D-Alexandria.

The players

Sen. Adam Ebbin

A Democratic state senator representing the 30th district, which includes parts of Alexandria.

Virginia Department of Agriculture

The state agency that would be tasked with registering and permitting fantasy sports operators under the proposed legislation.

Virginia Lottery

The state agency that would have rulemaking and oversight authority over daily fantasy sports under the proposed legislation.

Americans for Tax Reform

A conservative think tank that has criticized the proposed fantasy sports tax, arguing it will ultimately be passed on to consumers.

Got photos? Submit your photos here. ›

What they’re saying

“As with every tax and fee imposed on businesses, the cost doesn't stay with the company; it's ultimately passed on to consumers. This new tax inevitably translates into smaller prize pools, higher entry fees, fewer promotions and bonuses, and less competition in the market. In other words, Virginia players are the ones who end up footing the bill.”

— Americans for Tax Reform (Americans for Tax Reform)

What’s next

The bill will now proceed through the Virginia state legislature, where it will need to pass both the state Senate and House of Delegates before being signed into law by the governor.

The takeaway

This proposed tax on fantasy sports revenue is part of a broader push by Virginia's new Democratic majority to raise taxes on a variety of activities, from ammunition purchases to home delivery services. Critics argue these new taxes will ultimately be borne by consumers, raising costs and reducing competition in the affected markets.