Virginia signed a bill which legalizes fantasy sports sites like FanDuel and DraftKings. Also known as the Fantasy Contests Act, the signed bill makes Virginia the first state in the US to regulate fantasy sports.
The Virginia legislature first approved the Fantasy Contests Act in February. Signed by Governor Terry McAuliffe on Senate Bill 646, fantasy sports online sites will be required to register with the state government and pay an application fee to serve clients in Virginia. According to Reuters, Democrat McAuliffe mandates that players should be at least 18 years old or older. The measure also offers players limits on how much they can bet, requires annual audits and bars employees from competing in company contests.
The fantasy sports companies charge clients to take part in mostly single-day games in which they pick a roster of players whose performance on the field earns points. The Virginia law acknowledges the sport as a game of skill.
McAuliffe's spokesman, Brian Coy, said in a statement that the bill, which was passed by super majorities in both chambers, will 'empower' the state of Virginia to regulate this emerging industry and keep clients safe from any abuses. Top fantasy sports outlets commended the new law which was passed in Virginia, saying it stands in contrast tothe industry bans in other states, such as Texas and Nevada.
Meanwhile, New York Attorney General Eric Schneiderman banned FanDuel and DraftKings from accepting bets in Virginia in November, says RT News.
Lawmakers and regulators have sought bans on the websites, claiming that they constitute illegal online gambling. The Verge reported that the six states in the nation imposed bans on cash-prize fantasy sports websites. Fantasy sports sites are ALSO challenging the Illinois and New York bans in court.
Fantasy Contests Act takes effect on July 1.
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