Virginia Democrats suggest 10% tax on fantasy sports activities betting platforms

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Amid a slew of contemporary taxes proposed by the newly emboldened Democratic majority in Virginia, the newest entry seeks to sack folks’s fantasy soccer leagues.

The Fantasy Contests Act, authored by Sen. Adam Ebbin, D-Alexandria, would impose a ten% tax on fantasy sports activities income from video games performed inside the Commonwealth.

5 %, or 0.5 share factors of the general 10% tax, would go to the state’s problem-gambler remedy fund, whereas the opposite 95% (9.5 share factors) would go to the state’s basic fund.

VICTORIOUS VIRGINIA DEMOCRATS MORPH FROM PRETEND MODERATES INTO LIBERAL EXTREMISTS OVER NIGHT

Fantasy Soccer Draft Notes. (iStock)

It additionally requires fantasy sports activities contest operators to register with the Virginia Division of Agriculture and procure a allow earlier than providing any video games to folks within the Commonwealth.

Fox Information Digital reached out to Ebbin for touch upon the tax, and the way he got here up with the thought for it.

Whereas Ebbin didn't reply by press time, Fox Information Digital additionally tried to press the senator on how this newest levy aligns with Virginia Democrats’ marketing campaign mantra of "affordability."

Fox Information Digital additionally reached out to the state’s two legislative Republican caucuses for added remark.

The Virginia Lottery would have rulemaking and oversight authority over day by day fantasy sports activities, in line with Playing Insider.

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

Different states are additionally contemplating laws offering oversight or regulation of fantasy sports activities, together with Illinois, the outlet reported.

There, a invoice would grant the state’s gaming board the flexibility to tax and regulate such play at anyplace from 10 to fifteen%.

The Washington assume tank Individuals for Tax Reform got here out swinging in opposition to the laws with a full article-length critique of Ebbin’s plan.

"As with each tax and price imposed on companies, the fee doesn’t stick with the corporate; it’s finally handed on to shoppers," ATR wrote.

Buffalo Payments quarterback Josh Allen works out previous to an NFL wild-card playoff soccer recreation in opposition to the Jacksonville Jaguars in Jacksonville, Florida, on Sunday, Jan. 11, 2026. (Chris O'Meara/AP Picture)

"This new tax inevitably interprets into smaller prize swimming pools, greater entry charges, fewer promotions and bonuses, and fewer competitors available in the market. In different phrases, Virginia gamers are those who find yourself footing the invoice."

ATR additionally criticized the logic behind how the invoice was crafted, saying that if fantasy sports activities really are skill-based — in that gamers use their sports activities data to draft, begin, sit and commerce gamers — they shouldn't be taxed "as if they have been a vice."

Virginia Democrats have additionally proposed a slew of different tax proposals — other than their plan to redistrict probably each Republican congressman besides Morgan Griffith out of their seat.

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One such invoice creates a net-investment revenue tax on trusts and estates, elevating the Commonwealth’s high marginal fee to simply underneath 10%.

Different proposals create new high-tax brackets, levy Second Modification associated purchases like an 11% tax on ammunition, place a tax on home-delivery companies like Amazon, UPS and Uber Eats, and increase the present breadth of the state gross sales tax to incorporate purchases not beforehand taxed underneath Gov. Glenn Youngkin’s tenure or earlier.

Charles Creitz is a reporter for Fox Information Digital.

He joined Fox Information in 2013 as a author and manufacturing assistant.

Charles covers media, politics and tradition for Fox Information Digital.

Charles is a Pennsylvania native and graduated from Temple College with a B.A. in Broadcast Journalism. Story suggestions might be despatched to charles.creitz@fox.com.