In Virginia, the Democratic majority has put forth a proposal called the Fantasy Contests Act, which seeks to impose a 10% tax on fantasy sports revenue generated within the state. This move is part of a broader trend of tax increases introduced by the newly empowered Democrats in the Virginia legislature. The proposal indicates that 5% of the tax will be allocated to the state's problem-gambler treatment fund, while the majority, accounting for 9.5 percentage points, will be funneled into the general fund.

The act, authored by Senator Adam Ebbin from Alexandria, has garnered attention not only for its content but also for its implications on how the state manages and regulates fantasy sports. Currently, the fantasy sports contest operators would need to register with the Virginia Department of Agriculture and secure a permit to offer games to residents. This regulatory requirement signals a shift in how states perceive and approach the burgeoning fantasy sports industry, which has long existed in a somewhat gray area in terms of taxation and legality.

Moreover, while the specifics of how Ebbin conceived this tax have not been disclosed (as he did not respond to inquiries), the introduction of such a tax raises questions about the motivations behind targeting a popular activity enjoyed by many residents. Critics, particularly from Republican circles, may view this tax as an overreach and an example of government overreach into personal leisure activities. The proposed tax could become a contentious point in Virginia's ongoing debates about taxation and social gambling policy.