Virginia Democrats propose 10% tax on fantasy sports betting platforms

Amid a series of new taxes proposed by Virginia’s newly emboldened Democratic majority, the latest entry aims to license fantasy football leagues.

The Fantasy Contests Act, authored by Sen. Adam Ebbin, Democrat of Alexandria, would impose a 10 percent tax on fantasy sports revenue from games played within the commonwealth.

Five percent, or 0.5 percentage points of the overall 10 percent tax, would go to the state’s problem gambler treatment fund, while the remaining 95 percent (9.5 percentage points) would go to the state’s general fund.

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Fantasy Football Draft Grades. (iStock)

It also requires fantasy sports contest operators to register with the Virginia Department of Agriculture and obtain a permit before offering games to residents of the Commonwealth.

Fox News Digital reached out to Ebbin for comment on the tax and how he came up with the idea.

Although Ebbin did not respond at the time of publication, Fox News Digital also attempted to press the senator on how this latest levy aligns with Virginia Democrats’ campaign mantra: “affordable.”

Fox News Digital also reached out to both of the state’s Republican legislative caucuses for additional comment.

The Virginia Lottery reportedly has regulatory and oversight power over daily fantasy sports, according to Gambling Insider.

Washington Commanders Austin Ekeler #30 trains in Ashburn, Virginia. (Scott Taetsch/Getty Images)

Other states are also considering legislation providing oversight or regulation of fantasy sports, including Illinois, the outlet reported.

There, a bill would grant the state gaming board the ability to tax and regulate this type of gambling at a rate between 10 and 15 percent.

The Washington think tank, Americans for Tax Reform, came out against the legislation with a comprehensive article criticizing Ebbin’s plan.

“As with any tax and fee imposed on businesses, the cost does not remain the responsibility of the business; it is ultimately passed on to consumers,” ATR wrote.

Buffalo Bills quarterback Josh Allen practices before an NFL playoff football game against the Jacksonville Jaguars in Jacksonville, Fla., Sunday, Jan. 11, 2026. (Chris O’Meara/AP Photo)

“This new tax inevitably results in smaller prize pools, higher entry fees, fewer promotions and bonuses, and less competition in the marketplace. In other words, Virginia players end up footing the bill.”

ATR also criticized the logic behind how the bill was written, saying that if fantasy sports are truly skill-based — in the sense that players use their sports knowledge to recruit, start, sit and trade players — they should not be taxed “as if they were a vice.”

Virginia Democrats have also proposed a slew of other tax proposals — beyond their plan to potentially redistrict every Republican congressman except Morgan Griffith’s seat.

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One of these bills creates a net investment income tax on trusts and estates, increasing the Commonwealth’s top marginal rate to just under 10 percent.

Other proposals create new high tax brackets, levy Second Amendment-related purchases like an 11% tax on ammunition, impose a tax on home delivery services like Amazon, UPS and Uber Eats, and expand the current scope of the state sales tax to include purchases previously untaxed during Gov. Glenn Youngkin’s tenure or before.