The new Virginia Fantasy Contests Act regulates consumer privacy on fantasy sports game websites, like DraftKings and FanDuel, and also requires fantasy sports companies to pay a licensing fee in Virginia to pay for the cost of oversight. The Virginia Department of Agriculture and Consumer Services will lead the oversight of these companies including ensuring that all users of these fantasy sports sites are 18 years of age or older, that employees do not pass along confidential information (e.g. information that can affect the outcome of the fantasy contests) and that these companies segregate user funds from operational monies.
With more than 1.2 million fantasy sports players in Virginia each year, this will not only mean big responsibility for the oversight team, but also more careful compliance by these fantasy sports companies. Other states are sure to follow Virginia’s lead.