- South Carolina will once again debate sports betting legalization this session
- The bill will allow eight online sports betting licenses
- The sports betting tax rate will be set at 12.5%
South Carolina lawmakers are getting a running start on sports betting legalization heading into the 2025 legislative session.
Rep. Chris Murphy (R-98) introduced HB 3625, the South Carolina Sports Wagering Act, to legalize online sports betting in the Palmetto State. The legislation will allow for up to eight sports betting licenses and sets the state tax rate at 12.5% of adjusted sports betting gaming revenues.
South Carolina lawmakers have attempted to legalize sports betting in the state for the past several years with little success, but with neighboring North Carolina’s sports betting market flourishing it seems as if legislators may be re-energized to push a bill through this session.
South Carolina Sports Betting Bill Details
Murphy is the main sponsor of the bill, but it also has bipartisan support from Rep. J. Todd Rutherford (D-74). It’s also co-sponsored by Rep. Heath Sessions (R-46).
The bill has been introduced prior to the state’s upcoming legislative session, which is set to begin on Tuesday, Jan. 14, 2025. The legislation 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.
It will allow sports betting customers to place wagers on collegiate sports.
The bill requires all applicants to submit a $100,000 application fee and a licensing fee of $1 million. If the application is denied, the licensing fee will be refunded, but the application fee will remain with the state. Licenses will last for five years.
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 bill sets the minimum age to bet at 18. Only Kentucky, New Hampshire, Rhode Island, and Washington, D.C., allow customers who are 18 to bet on sports in their jurisdiction.
The legislation also brings in fantasy sports from the current gray market it’s operating in the state. Fantasy contests would be legalized and regulated under the South Carolina Sports Wagering Commission.
North Carolina Success Stoking Efforts?
The reinvigorated efforts to legalize South Carolina sports betting may be in part due to the success of neighboring North Carolina’s sports betting market. The Tar Heel State launched sports betting in March 2024 and has seen millions in sports betting tax revenue.
Since launch, the state has reported $545,594,932 in gross gaming revenue, which has led to $98,627,033 in sports betting tax revenue through November.
The North Carolina State Lottery Commission reported $657.6 million in online sports betting handle and $78.09 million in gross wagering revenue for the month of November, which led to more than $14 million in sports betting tax revenue. It was the state’s most profitable month of sports betting ever, topping the previous high of $12.61 million set in September 2024.
Prior Sports Betting Efforts Have Fallen Short
South Carolina gambling options are very limited, as the state has no casinos and no horse racing. Sports betting legalization efforts in the past have never gained much momentum, with the last piece of legislation, H 3095 joint resolution, being introduced in Jan. 2023 by Rutherford. The bill would have legalized online sports betting, pari-mutuel betting, and casinos if voters approved a constitutional amendment in the state’s general election.
It never moved out of committee.
In 2022, Rep. William Herbkersman (R-118) introduced HB 5277 to legalize retail and online sports betting in South Carolina, which was also co-sponsored by Rutherford. The bill allowed eight to 12 online sports betting platform operators, all of whom were required to partner with a state entity to operate. If it had been approved, professional sports franchises, facilities that host PGA Tour events, and promoters of a national association for stock car auto racing national touring race would have been eligible to apply for a sports betting license and partner with an operator.
The bill was referred to the House Committee on Judiciary after its introduction. It languished in committee for months and was never publicly discussed.
South Carolina lawmakers recently introduced a sports betting bill that could potentially change the landscape of gambling in the state. The bill, known as H 3102, aims to legalize sports betting at casinos, racetracks, and online platforms.
If passed, the bill would allow South Carolina residents to place bets on a wide range of sporting events, including professional and college games. This would open up a new revenue stream for the state, as well as provide a safe and regulated environment for sports betting enthusiasts.
One of the key components of the bill is the establishment of a regulatory body to oversee the industry. This would ensure that all operators are licensed and adhere to strict guidelines to protect consumers and prevent problem gambling.
Supporters of the bill argue that legalizing sports betting would bring in much-needed tax revenue for the state, as well as create jobs and stimulate economic growth. They also point to the success of other states that have already legalized sports betting, such as New Jersey and Pennsylvania.
However, there are also concerns about the potential negative impacts of legalizing sports betting, such as an increase in problem gambling and addiction. Opponents of the bill worry that it could lead to social issues and harm vulnerable populations.
Overall, the introduction of the sports betting bill by South Carolina lawmakers has sparked a heated debate among residents and stakeholders. It remains to be seen whether the bill will ultimately pass and what impact it will have on the state’s gambling industry.
