Virginia Democrats are proposing a 10% tax on fantasy sports betting sites

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Among a slew of new taxes proposed by the recently emboldened Democratic majority in Virginia, the latest entry aims to kick out the people’s football league.
The Fiction Contests Act, approved by Sen. Adam Ebbin, D-Alexandria, would impose a 10% tax on virtual gaming revenue from games played within the Commonwealth.
Five percent, or 0.5 points of the total tax of 10%, would go to the state fund to treat gamblers, and the other 95% (9.5 percent) would go to the general state fund.
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Fantasy Football Draft Notes. (Stock)
It also requires fair-sports tournament operators to register with the Virginia Department of Agriculture and obtain a permit before offering any games to people in the Commonwealth.
Fox News Digital reached out to Ebbin for comment on the tax, and how he came up with the idea.
While Ebbin did not respond by press time, Fox News Digital also tried to press the senator on how this latest tax fits into the Virginia Democrats’ affordability campaign.
Fox News Digital also reached out to two congressional Republicans for additional comment.
The Virginia Lottery will have the authority to govern and oversee the daily fantasy games, according to Gambling Insider.

Washington Commanders’ Austin Ekeler trains #30 in Ashburn, Virginia. (Scott Taetsch/Getty Images)
Other states are also considering legislation that would provide oversight or regulation of fantasy sports, including Illinois, the report said.
There, the bill would give the provincial gaming board the ability to tax and regulate such gaming at anywhere from 10 to 15%.
Washington think tanks Americans for Tax Reform came out against the legislation with a full article criticizing Ebbin’s plan.
“Like all taxes and fees paid to businesses, the cost does not stay with the company; it is ultimately passed on to consumers,” ATR wrote.

Buffalo Bills quarterback Josh Allen works out before the NFL wild-card playoff football game against the Jacksonville Jaguars in Jacksonville, Florida, Sunday, Jan. 11, 2026. (Chris O’Meara/AP Photo)
“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 end up footing the bill.”
ATR also criticized the concept of how the bill was drafted, saying that if fantasy sports were truly skill-based — with players using their sports knowledge to draft, start, stay and trade players — they shouldn’t be taxed “as if they were bad.”
Virginia Democrats have also proposed a number of other tax proposals – except for their plan to re-elect all members of Congress except for Morgan Griffith.
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One such bill creates a tax on investment income in trusts and estates, raising the Commonwealth’s top marginal rate to just under 10%.
Other proposals create new higher tax brackets, tax Second Amendment-related purchases as an 11% excise tax, impose a tax on home delivery services such as Amazon, UPS and Uber Eats, and expand the current scope of the state sales tax to include purchases that were not previously taxed under Gov. Glenn Youngkin or earlier.



