Virginia’s Democratic Majority Proposes New Tax on Fantasy Sports

Virginia’s newly strengthened Democratic majority is making headlines with a series of proposed tax measures, the latest targeting fantasy football leagues.

Dubbed the Fantasy Contest Act, this proposal, introduced by Sen. Adam Ebbin from Alexandria, plans to impose a 10% tax on revenue from fantasy sports games played within the state.

Of that total tax, 5% is allocated to the Problem Gambler Treatment Fund, while the other 95% goes into the state’s general fund. It’s a bit striking, I guess, how quickly the political landscape shifts, moving from moderation to what some might call a more liberal approach, almost overnight.

Fantasy sports operators would need to register and get a permit from the Virginia Department of Agriculture before offering their services in the state.

Fox News Digital tried to get Ebbin’s thoughts on the tax, particularly how it aligns with the Democratic Party’s rhetoric around “affordability.” But he didn’t respond by the deadline, which, you know, happens sometimes in politics.

Meanwhile, Virginia’s Lottery is set to have rule-making authority over daily fantasy sports. Other states, like Illinois, are also exploring regulations for fantasy competitions, considering similar tax measures that range between 10-15%.

The think tank Americans for Tax Reform is vocally against Virginia’s bill, arguing that any tax on businesses ultimately raises costs for consumers. They pointed out that this tax could result in smaller prize pools and fewer promotions, which might not sit well with avid players.

There’s a layer of irony here, right? If fantasy sports are indeed skill-based, as proponents argue, why should they be taxed like a vice? It’s a question that, I think, deserves some thought.

Along with this fantasy sports tax, Virginia Democrats are proposing several other measures, including a net investment income tax that could elevate the top marginal federal tax rate to just below 10%. Other suggestions include taxing Second Amendment purchases, like an 11% tax on ammunition, taxing delivery services, and broadening the state sales tax to cover purchases that have remained untaxed until now.