SB 129: Fantasy contests; regulation and taxation, civil penalty, repeals Fantasy Contests Act. - Virginia

General Laws Substitute → Chaptered · 6 edits

MODERATE

The bill transitions the Fantasy Contests Act from a temporary House Substitute to a permanent Chaptered law, updating the effective date to July 1, 2026. It reorganizes the legal structure by moving fantasy contest regulations into Title 58.1 and repealing the old Chapter 51. The most significant substantive change is the addition of a 10% tax on fantasy contest revenue, with 5% allocated to a Problem Gambling Treatment and Support Fund and 95% to the general fund. The bill also clarifies definitions, streamlines permit application fees, and adds new requirements for internal controls to prevent problem gambling.

Scope change

The scope of the law was expanded by adding a new chapter (58.1-4200 through 58.1-4214) to the Code of Virginia, while the previous Chapter 51 (§§ 59.1-556 through 59.1-570) was repealed. The law now explicitly includes investigations related to the new regulations under public record exemptions.

FISCAL

A new 10% tax on fantasy contest revenue was added, split between the Problem Gambling Treatment and Support Fund (5%) and the General Fund (95%).

TIMELINE

The effective date for the public records exemption section was updated from July 1, 2025 to July 1, 2026.

REQUIREMENT

Permit application and renewal fees were adjusted, with new fees required to be deposited into the Problem Gambling Treatment and Support Fund.

DEFINITION

New definitions were added to clarify terms such as 'Confidential information' and 'Fantasy contest revenue' to ensure consistent application of the tax and regulations.

SCOPE

The entire previous Chapter 51 of Title 59.1 was repealed and replaced with the new structure in Title 58.1 to better organize gambling-related laws.

ENFORCEMENT

Penalties for violations were clarified, including daily fines up to $1,000 per violation with a cap of $50,000 per case.

Enrolled → Finance and Appropriations Substitute · 6 edits

MODERATE

The bill was completely rewritten from a comprehensive law establishing fantasy contest regulations into a study directive. The original version created a new regulatory chapter, defined fantasy contests, set up licensing fees, imposed taxes, and established a Problem Gambling Treatment and Support Fund. The new version removes all of these operational rules and instead directs the Virginia Lottery and Department of Agriculture to study how fantasy contests should be regulated and taxed, with a report due by November 1, 2026.

Scope change

The bill's scope shifted from immediately creating a legal framework for fantasy contests to temporarily suspending that framework while agencies conduct a comparative analysis of fantasy contests versus sports betting.

SCOPE

Removed the entire new Chapter 42 which established the legal definition of fantasy contests, licensing requirements, and prohibited conduct.

FISCAL

Deleted the creation of the Problem Gambling Treatment and Support Fund and the associated tax revenue allocation.

REQUIREMENT

Eliminated the 10% tax on fantasy contest revenue and the $50,000 application fee.

Added a directive requiring the Virginia Lottery and VDACS to assess regulation and taxation options and report findings by November 1, 2026.

ENFORCEMENT

Removed provisions for permit issuance, suspension, revocation, and civil penalties for fantasy contest operators.

TIMELINE

Changed the effective date from immediate implementation to a study period ending November 1, 2026.

Introduced → Enrolled · 8 edits · Apr 13, 2026

MODERATE

This bill transitions the Fantasy Contests Act from a temporary pilot program to permanent law by repealing the old chapter and replacing it with a new, expanded framework. The changes include extending the effective date, adding new definitions and regulations, and significantly altering the tax structure and fund allocations.

Scope change

The bill expands the scope of the Fantasy Contests Act by adding new chapters and sections to the Code of Virginia, effectively making the regulations permanent rather than temporary.

TIMELINE

The temporary expiration date of July 1, 2026, for the Fantasy Contests Act was removed, making the law permanent.

SCOPE

New chapters were added to Title 58.1 to regulate problem gambling and fantasy contests more comprehensively.

FISCAL

The allocation of tax revenue changed; 5% of fantasy contest revenue is now directed to a Problem Gambling Treatment and Support Fund, whereas previously no such allocation was specified in the repealed text.

REQUIREMENT

The application fee for fantasy contest operators was increased from $50,000 to $100,000 (a $50,000 initial fee plus a $50,000 issuance fee).

The renewal fee for fantasy contest permits was increased from $25,000 to $50,000.

DEFINITION

New definitions were added for 'Compulsive gambling' and 'Problem gambling' to clarify the distinction between the two conditions.

ENFORCEMENT

The maximum daily penalty for violations was increased from $1,000 to $2,000, with the total cap remaining at $50,000.

TECHNICAL

Several section numbers and chapter references were updated or repealed to reflect the new legislative structure.

Finance and Appropriations Substitute → General Laws Substitute · 3 edits

MINOR

The bill was re-substituted by the House Committee on General Laws, changing the legislative process from a Senate-only substitute to a joint substitute. The substantive policy text regarding the assessment of fantasy contests remains unchanged, but the bill now formally proposes to amend and reenact specific Code of Virginia sections related to fantasy contests and public records.

Scope change

The bill's scope regarding fantasy contest regulation is unchanged; however, the procedural scope shifted from a Senate-only proposal to a House-substituted version.

TECHNICAL

The bill header was changed from 'Senate Substitute' to 'Amendment in the Nature of a Substitute' offered by the House Committee on General Laws, indicating a procedural update where the House has now reviewed and substituted its version of the bill.

The specific Code of Virginia sections listed for amendment were updated to reflect the current effective law and future changes, ensuring the bill targets the correct statutory language.

The bill text was reformatted with line numbers and spacing adjustments typical of a House-substituted draft, while the core content regarding the fantasy contest assessment remains identical to the original Senate version.

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

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