Source: Fox News
Summary
Virginia Democrats propose a new tax on fantasy sports revenue, with 10% going to the state’s general fund and 5% to a problem-gambler treatment fund. The tax would require fantasy sports contest operators to register with the Virginia Department of Agriculture and obtain a permit.
Our Reading
As expected, the matter has reached another stage.
The Virginia Democrats’ latest tax proposal targets fantasy sports, with a 10% tax on revenue from games played in the Commonwealth. The tax would fund the state’s general fund and a problem-gambler treatment fund.
The Fantasy Contests Act, authored by Sen. Adam Ebbin, D-Alexandria, would impose a 10% tax on fantasy sports revenue from games played within the Commonwealth.
It also requires fantasy sports contest operators to register with the Virginia Department of Agriculture and obtain a permit before offering any games to people in the Commonwealth.
This 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 are the ones who end up footing the bill.
This familiar dance between tax and regulation is just another step in the long process of shaping Virginia’s fiscal landscape.
