- A Senate bill has been introduced to legalize sports betting in the Palmetto State
- Sen. Tom Davis (R-46) introduced the bill earlier this month to only legalize online sports betting
- The bill sets a sports betting tax rate of 12.5%
South Carolina lawmakers may be turning their attention back to the potential of legalized sports betting.
Sen. Tom Davis (R-46) recently introduce a bill to legalize South Carolina sports betting. The legislation only legalizes online sports betting in the Palmetto State and will allow for up to eight sports betting operators.
The legislation will tax sports betting at a rate of 12.5%.
Similar to House Introduced Bill
Davis’s bill, SB 444, sets the minimum age for sports betting at 18. If approved, South Carolina would be one just a handful of states to allow customers under the age of 21 to bet on sports. This will likely be a point of contention during legalization discussions and may be amended as the bill moves through committee.
The bill currently sits in the Senate Labor, Commerce, and Industry Committee.
Davis’s legislation is exactly the same as Rep. Chris Murphy’s (R-98) online sports betting bill HB 3625. Murphy introduced his bill in December 2024, but Davis’s legislation is not listed as companion piece for Murphy’s potential law. Murphy’s bill has sat in the House Ways and Means Committee since January.
The bill will establish a South Carolina Sports Wagering Commission to oversee the sports betting market and will only allow operators who are already established in at least five other states to apply for a sports betting license.
Applicants for a sports betting license will be required to pay a $100,000 application fee. If awarded a licensed, the price tag will be set at $1 million.
The commission will officially set the sports betting tax rate at 12.5% of adjustable sports betting gaming revenues. Operators will be able to deduct promotional spending from their gross gaming revenues.
Sports betting tax revenues will be distributed as such:
- 82% to the general fund
- 10% to the general fund to be distributed quarterly to each local government in the state on a per capita basis, as determined by population based on the last census
- 5% to the Department of Mental Health to oversee one or more grant programs with organizations to provide treatment services for individuals with problem gambling
- 3% to provide for the administrative and operating expenses of the South Carolina Sports Wagering Commission
The legislation also brings the daily fantasy sports (DFS) market out of the gray in the state.
Interest in South Carolina Sports Betting is High
GeoComply reported in December that demand for South Carolina sports betting is surging, as the company identified more than 10,000 registered sports betting accounts in the state. The accounts were registered with legitimate sports betting operators, but all activity in the state is blocked.
GeoComply reported more than 77,000 geolocation checks from South Carolina residents during week 16 of the NFL season. This was a 536% increase in geolocation checks in the state compared with week 16 of last year.
While interest in sports betting is high among state residents, it remains to be seen if South Carolina lawmakers share the same enthusiasm for the two online sports betting bills.
South Carolina is once again considering revisiting its online sports betting regulations, as the state looks to capitalize on the growing popularity of sports betting across the country. With neighboring states like North Carolina and Georgia already moving forward with legalizing sports betting, South Carolina is feeling the pressure to keep up.
The state initially introduced a bill to legalize online sports betting back in 2019, but it failed to gain traction. However, with the recent Supreme Court ruling that allows states to legalize sports betting, South Carolina lawmakers are once again looking at the potential benefits of regulating this industry.
One of the main reasons for revisiting online sports betting regulations is the potential revenue it could bring to the state. With many states struggling financially due to the COVID-19 pandemic, legalizing sports betting could provide a much-needed boost to the economy. In fact, experts estimate that legalizing sports betting in South Carolina could generate millions of dollars in revenue each year.
Another reason for revisiting online sports betting regulations is the growing demand from consumers. With more and more people turning to online sports betting as a form of entertainment, South Carolina risks losing out on potential tax revenue if it does not regulate this industry. By legalizing online sports betting, the state can ensure that consumers are protected and that operators are held accountable.
However, there are still concerns about the potential negative impacts of legalizing online sports betting. Some lawmakers worry about the potential for increased problem gambling and addiction, as well as the impact on traditional brick-and-mortar casinos. These concerns will need to be addressed before any legislation is passed.
Overall, revisiting online sports betting regulations in South Carolina is a complex issue that requires careful consideration. While there are potential benefits to legalizing sports betting, there are also risks that need to be taken into account. It will be interesting to see how lawmakers navigate these challenges and whether South Carolina will ultimately join the growing number of states that have legalized online sports betting.
