Virginia Law

A. No fantasy contest operator shall offer any fantasy contest in the Commonwealth without first receiving a permit issued by the Department. Applications for a permit shall be on forms prescribed by the Board. Any permit issued by the Department shall be valid for three years from the date of issuance.

B. The application for a permit submitted by a fantasy contest operator shall contain the following information:

1. The name and principal address of the applicant; if a corporation, the state of its incorporation, the full name and address of each officer and director thereof, and, if a foreign corporation, whether it is qualified to do business in the Commonwealth; if a partnership or joint venture, the name and address of each officer thereof;

2. The address of any offices of the applicant in the Commonwealth and its designated agent for process within the Commonwealth. If no such agent is designated, the applicant shall be deemed to have designated the Director of the Department. If the operator does not maintain an office, the name and address of the person having custody of its financial records;

3. The place where and the date when the applicant was legally established and the form of its organization;

4. The names and addresses of the officers, directors, trustees, and principal salaried executive staff officer;

5. The name and address of each principal stockholder or member of such corporation;

6. The applicant's experience in operating fantasy contests in any other state or country, including the operator's history and reputation of integrity, financial viability, and compliance with applicable laws and regulations;

7. The applicant's proposed internal controls, including controls to ensure that no prohibited or voluntarily excluded person will be able to compete in fantasy contests;

8. The applicant's history of working to prevent problem gambling, including instituting applicable training programs for its employees; and

9. Such information as the Department and the Board deems necessary to ensure compliance with the provisions of this chapter.

C. Every permit issued pursuant to this chapter shall be accompanied by a nonrefundable, initial application fee of $50,000, which shall be deposited by the Department into the Problem Gambling Treatment and Support Fund established pursuant to § 37.2-314.2.

D. As a condition of being issued a permit, a fantasy contest operator shall submit evidence satisfactory to the Department that the operator has established and will implement procedures for fantasy contests that:

1. Prevent him or his employees and relatives living in the same household as the operator from competing in any fantasy contest offered by such operator in which the operator offers a cash prize;

2. Prevent the sharing of confidential information that could affect fantasy contest play with third parties until such information is made publicly available;

3. Verify that any fantasy contest player is 21 years of age or older;

4. Ensure that players who are the subject of a fantasy contest are restricted from entering a fantasy contest that is determined, in whole or part, on the accumulated statistical results of a team of individuals in which such players are fantasy contest players;

5. Allow individuals to restrict themselves from entering a fantasy contest upon request and take reasonable steps to prevent those individuals from entering the operator's fantasy contests;

6. Disclose the number of entries a single fantasy contest player may submit to each fantasy contest and take reasonable steps to prevent such players from submitting more than the allowable number; and

7. Segregate player funds from operational funds in separate accounts and maintain a reserve in the form of cash, cash equivalents, irrevocable letter of credit, bond, or a combination thereof in an amount sufficient to pay all prizes and awards offered to winning players.

E. If permit application forms are filed online using a website approved by the Director of the Department, the operator shall follow the procedures on such website for signing the application forms.

F. Any operator that allows its permit to lapse, without requesting an extension of time to file, shall be required to resubmit an initial permit application. An extension may be granted by the Department upon receipt of a written request.

G. Any person who knowingly and willfully falsifies, conceals, or misrepresents a material fact or knowingly and willfully makes a false, fictitious, or fraudulent statement or representation in any permit application submitted pursuant to this chapter is guilty of a Class 1 misdemeanor.

2026, cc. 565, 566.