India, Jan. 30 -- Democrats in the Virginia General Assembly are advancing legislation that could impose a 10 per cent tax on fantasy contest revenue and tighten regulations on operators. This could change how daily fantasy sports operators do business in the state.

House Bill 145 (HB 145), proposed by Delegate Paul Krizek, just passed its initial test. All members of a House subcommittee voted in favor of sending the bill to the Appropriations Committee.

In 2016, Virginia became one of the first jurisdictions to recognize daily fantasy sports. Nevertheless, the initial arrangement included no revenue tax and a flat licensing cost. Legislators now appear eager to bring the sector closer to other regulated gaming sectors.

Many states, i...