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

Created a new Chapter 42 in Title 58.1 to formally regulate fantasy contests under the Virginia Lottery Board.

Repealed Chapter 51 of Title 59.1, which contained the previous fantasy contest regulations administered by the Department of Agriculture.

Imposed a 10% tax on fantasy contest revenue and a 2.6% administrative fee to fund problem gambling treatment and state operations.

Transferred enforcement powers, including permit issuance and revocation authority, from the Department of Agriculture to the Virginia Lottery.

Mandated strict internal controls for operators to prevent employees and their families from participating in contests and to verify player age.

Set a deadline of January 1, 2029, for the Lottery Board to adopt necessary regulations to implement the new law.

Provided specific legal definitions for terms like 'fantasy contest,' 'entry fee,' and 'principal stockholder' to clarify the law's application.

Removed all substantive text that would have immediately amended the Code of Virginia to create a regulatory framework for fantasy contests, including definitions, permit requirements, and tax provisions.

Added a directive for the Virginia Lottery and VDACS to assess the regulation and taxation of fantasy contests, including a review of how other states handle these contests and a comparison with sports betting.

Changed the effective date and reporting deadline; the new version requires an assessment report to be submitted to the General Assembly by November 1, 2026, rather than immediately enacting laws.

Removed the creation of the 'Problem Gambling Treatment and Support Fund' and the specific allocation of fantasy contest tax revenue to it.

Removed the specific legal definitions for terms like 'fantasy contest,' 'entry fee,' and 'fantasy contest operator' that were previously included in the bill.

Removed provisions regarding permit issuance, suspension, revocation, and penalties for non-compliance.