Virginia has its new set of daily fantasy sports regulations, while other issues, like online casino, sweepstakes ban and a consolidated gambling regulator, were left behind this session.
Gov. Abigail Spanberger signed this week House Bill 145, which sets up new regulations for daily fantasy sports in Virginia. She also vetoed a bill that would legalize skill games in the state, citing the lack of a centralized gambling regulator.
“The absence of a centralized regulatory authority for gaming creates gaps in oversight that threaten the Commonwealth of Virginia’s ability to provide consistent enforcement, prevent illicit activity, and protect all consumers,” Spanberger said. “Right now, legalizing skill gaming and introducing more of these machines into our communities would strain an already fragmented system.
“Legalizing these machines at this moment would also reward operators who knowingly disregarded state law for years and set a troubling precedent for how business is conducted in Virginia.”
Virginia daily fantasy sports details
Virginia lawmakers legalized DFS operators in 2016 with the Fantasy Contest Act. However, they did not create a tax for the industry.
HB 145 sets up three-year DFS licenses with a $50,000 license fee and a 10% tax on operators, with 95% going to the Virginia General fund. It includes a 90-day transition period for operators already in the state.
The legislation also means the end of daily fantasy contests against the house, with all contests now required to include at least two people.
The bill also transition regulatory powers from the Department of Agriculture to the Virginia Lottery. The Lottery also oversees the Virginia sports betting market.
Virginia gambling regulator discussions
Spanberger’s administration called for a single gambling regulator during this year’s session.
The Virginia Lottery oversees the sports betting, casinos and lottery, while the Virginia Racing Commission regulates live, historical and advanced deposit horse racing. While DFS will move to the Lottery, the Department of Agriculture also oversee charitable gaming.
This year, there were bills aiming to establish a Virginia Gambling Commission, but they did not cross the finish line.
Last year, former Republican Gov. Glenn Youngkin tried to establish the Virginia Gambling Commission in the budget. With slim Democratic majorities in both chambers, the legislature rejected the idea.
Online casino bills failed
Following a failed effort in 2025 where two online casino bills were pulled with plans to further study the industry, multiple online casino bills were introduced the session.
The chambers passed different versions for online casino legalization and did not reconcile. They did share the same fundamentals, including a 20% tax on operator revenue and casino-tethered licenses. The difference was in how the tax revenue was allocated.
The bills set the Virginia Lottery as the regulator. And building on the call for a consolidated regulator, some lawmakers wanted to tie it to creating the Virginia Gambling Commission.
Virginia online casino legislation also would have banned sweepstakes casinos. Multiple states, including Indiana and Maine have passed sweepstakes bans this year.
