Sports Betting

Virginia Lawmakers Look To Amend DFS Regulations, Ban PrizePicks & Underdog Fantasy

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PrizePicks and Underdog pic

Virginia could be the next state to crack down on fantasy sports. There’s been ongoing ambiguity between legal sports betting and pick ’em-style DFS. Paul Krizek is a delegate for Old Dominion and he recently said that fantasy sports are a “compliance nightmare.” Krizek is part of a gambling subcommittee where he plans to introduce legislation in the 2025 General Assembly session. He wants to clarify the difference between legal sports betting games in Virginia and other prop-centric, pick ’em-style fantasy sports. 

Additionally, Krizek wants to raise the age for fantasy sports from 18 to 21. Virginia is not the first state to run into issues with daily fantasy sports. Regulators in Massachusetts, New York, and Florida have all been dealing with similar problems. Krizek claims that DFS operators like Underdog Fantasy and PrizePicks are offering the same prob bets seen on traditional sportsbooks. Paul Krizek believes they are taking advantage of the market. 

What are the differences between normal sportsbooks and DFS regulators like Underdog and PrizePicks?

Traditional sportsbooks in Virginia are regulated by the Virginia Lottery. They are subject to a 15% tax rate on adjusted gross gaming revenue. To become a legal sportsbook in VA, operators must pay an initial $250,000 fee to receive a license. Each year they have to pay $200,000 to keep their operating license active. In the Commonwealth State, Daily Fantasy Sports (DFS) is not regulated by the same entity. 

The Virginia Department of Agriculture and Consumer Service oversees DFS. Operators must pay $8,300 for a license and the same price is paid each year to renew it. Lawmakers are doing what they can to make it an equal playing field for everyone. As the market stands in Virginia, DFS operators like Underdog and PrizePicks are taking advantage of poor regulations. New York, Florida, and Michigan have outlawed the pick ’em-style games completely.