Virginia Signed DFS Into Law While Vetoing Its Casino Bills — Here’s What Operators Need to Know

Virginia made a significant move this week in how it oversees the daily fantasy sports industry. Governor Abigail Spanberger signed House Bill 145 into law, formally updating the state’s Fantasy Contests Act and placing daily fantasy sports under a revamped regulatory and tax framework. The development came in the same week that Spanberger vetoed two separate gambling expansion bills — one that would have legalized skill games statewide and another that would have forced Fairfax County to hold a casino referendum. The contrast is striking: Virginia’s governor closed the door on some forms of gambling while opening a new chapter of formal oversight for DFS.

What the New DFS Law Actually Requires

HB 145 represents the most substantial update to Virginia’s DFS framework since the state originally legalized fantasy contests in 2016. That original law established a registration-based system under the Department of Agriculture and Consumer Services with a flat $50,000 registration fee and no revenue tax. The new law overhauls nearly all of that.

Under HB 145, oversight of daily fantasy sports shifts to the Virginia Lottery, giving that agency explicit authority to write rules, investigate operators, and take enforcement action. Operators must obtain a state-issued permit valid for three years, with a $50,000 application fee and a $25,000 renewal fee. A 90-day transition period allows existing operators to continue offering contests while permit applications are processed. All new entrants must be permitted before launching.

The tax structure changes significantly. HB 145 introduces a 10 percent monthly tax on DFS revenue generated in Virginia, with 95 percent flowing to the general fund and 5 percent directed to the Problem Gambling Treatment and Support Fund. This is a sharp departure from the previous zero-tax model and brings Virginia closer to how Tennessee and other states have approached DFS taxation.

Consumer protection requirements are considerably strengthened. Operators must verify that participants are 21 or older — a notable increase from the previous 18-year-old floor. Self-exclusion options must be available. Player funds must be kept separate from operational accounts. Operators must maintain sufficient reserves to cover prize obligations and submit to annual independent audits. Any DFS contest must remain genuinely peer-to-peer; house-backed or “pick ’em” formats that resemble traditional sports betting are explicitly prohibited. This last provision is particularly significant given the industry-wide scrutiny that pick ’em products have drawn from regulators who view them as sports betting disguised as fantasy.

The Vetoes: Skill Games and the Fairfax Casino

The gaming bills that did not survive Spanberger’s pen tell an equally important story. On April 9, the governor vetoed legislation that would have required Fairfax County’s Board of Supervisors to call a referendum on a casino development in Tysons Corner. A day later, she vetoed Senate Bill 661, which would have legalized electronic skill gaming devices across the commonwealth.

In both cases, Spanberger’s reasoning pointed to the same structural problem: Virginia lacks a centralized, independent regulatory body responsible for all forms of legal gaming. The Virginia Lottery Board currently holds oversight authority over casinos, sports betting, and now DFS — but the governor has been explicit that the current patchwork is insufficient for a state that has rapidly expanded gambling options over the past decade.

“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 in her veto statement on the skill games bill.

Skill games — slot-like machines that proliferated in convenience stores and bars — have a complicated history in Virginia. They were temporarily legalized during the COVID-19 pandemic to provide small businesses with extra revenue, then banned by the General Assembly in 2021. Legal challenges kept machines running until October 2023, when the Virginia Supreme Court upheld the legislature’s authority to ban them. The 2026 session saw renewed legislative support for relegalization, with both chambers passing SB 661/HB 1272, but Spanberger’s position on regulatory infrastructure ultimately sank the effort. The governor pointedly noted that signing the bill would reward operators who had knowingly disregarded state law for years.

On the Fairfax casino, Spanberger cited local governing bodies’ explicit opposition. The Fairfax County Board of Supervisors has opposed the casino development, and an overwhelming majority of the General Assembly members representing Fairfax voted against the bill. Her position: local leaders should drive casino decisions, as has been the case in every locality that currently has a casino.

What the Combined Picture Means for Virginia’s Gambling Landscape

Taken together, the week’s actions define a clear philosophy from the Spanberger administration. Gaming expansion in Virginia is not categorically off the table — but it will be conditioned on building the right regulatory infrastructure first. The DFS bill passed Spanberger’s scrutiny because it placed a specific product category under a specific state agency with clear rules and consumer protections. The skill games and casino bills did not because they would have added complexity to a system the governor views as already fragmented.

For DFS operators — primarily FanDuel and DraftKings, which dominate the Virginia market — the practical impact of HB 145 is a higher cost of doing business alongside clearer long-term certainty. The transition to Virginia Lottery oversight, the new permit system, and the 10 percent revenue tax will require compliance adjustments. But operators who are already operating legally in the state have 90 days to work through the permitting process, and the framework itself is not punitive compared to what exists in other states.

For Virginia bettors and fantasy players, the most visible change under the new law is the age requirement moving from 18 to 21. That aligns DFS with sports betting in the state, which also carries a 21-and-over restriction. Players who are 18, 19, or 20 and currently active on DFS platforms will need to exit when the law takes full effect.

On the broader gambling policy front, Spanberger has signaled she is willing to work with the General Assembly on future gaming expansion — but she has set a clear precondition: create the centralized regulatory commission first. Until that body exists, expect additional vetoes on any bills that expand gambling without also expanding oversight infrastructure to match.