Democrats in the Virginia General Assembly are advancing legislation that could impose a 10 per cent tax on fantasy contest revenue and tighten regulations on operators. This could change how daily fantasy sports operators do business in the state.
House Bill 145 (HB 145), proposed by Delegate Paul Krizek, just passed its initial test. All members of a House subcommittee voted in favor of sending the bill to the Appropriations Committee.
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What does the bill state?
- Under the bill introduced by Democratic lawmakers, fantasy sports operators would be required to pay a 10 per cent tax on revenue generated from contests in Virginia.
- 95 per cent of the tax revenue would go to the Virginia general fund, while the 5 per cent would be earmarked for support programmes tackling gambling addiction prevention and treatment.
- To conduct competitions, operators would need to secure three-year permits; application and renewal fees would help pay for regulatory oversight and enforcement.
- The bill also mandates tighter controls on player safety. Players must be a minimum of 21 years old and age verification will be carried out. It mandates segregation of player funds from operating funds and having enough cash to pay out prizes are a few of the list.
- When someone violates the rules, external experts will be appointed who will also have the authority to impose penalties, cancel licenses, or withdraw permits.
- The Bill also refines what qualifies as a “fantasy contest” by limiting it to skill- and statistic-based games involving multiple athletes, effectively excluding “pick ’em” or house-backed games that resemble sports betting.
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“The change will bring more money for the public”
{{/usCountry}}Read more: Fantasy plays: Players to start and sit for NFL Week 15
“The change will bring more money for the public”
{{/usCountry}}In 2016, Virginia became one of the first jurisdictions to recognize daily fantasy sports. Nevertheless, the initial arrangement included no revenue tax and a flat licensing cost. Legislators now appear eager to bring the sector closer to other regulated gaming sectors.
Many states, including California and Arizona, have moved to having stricter rules for fantasy sports, according to Gambling News. According to the news outlet, supporters of HB 145 claim that the modifications will “bring in more money for the public.”