Law stated as of 09 Mar 2016 • USA (National/Federal)
Virginia recently passed the Fantasy Contests Act, which requires all fantasy contest operators to register with the state. With this act, Virginia becomes the first state to enact a law that specifically regulates fantasy sports contests.
On March 7, 2016, Virginia passed the Fantasy Contests Act (2016 VA H.B. 775 (NS)), which requires all fantasy contest operators to register with Virginia's Department of Agriculture and Consumer Services before they can offer any fantasy contest in the state. Under this new law, Virginia will not consider a registered fantasy contest an illegal gambling operation.
The Fantasy Contest Act defines a fantasy contest as any online fantasy or simulated game or contest in which:
There is an entry fee.
The value of all prizes and awards offered to winning participants is established and made known to the participants before the contest.
All winning outcomes:
reflect the participants' relative knowledge and skill; and
are determined by the accumulated statistical results of the performance of individuals, including athletes in the case of sports events.
No winning outcome is based:
on the score, point spread, or any performance of any single actual team or combination of teams; or
solely on any single performance of an individual athlete or player in any single actual event.
Registrations are valid for one year and the initial registration application fee is $50,000. If a party fails to comply with this new law, it can be fined up to $1,000 for each violation (for a total maximum fine of $50,000).