South Carolina Sports Betting Bill Continues to Make Progress

Are we witnessing the most ambitious attempt to legalize South Carolina sports betting yet? 

Quite possibly.

That rings a little hollow upon first consideration. But when you consider how little interest lawmakers have previously shown in the legalization of South Carolina sports betting through previous years, this is actually quite a big deal.

Sure, The Palmetto State has discussed sports betting legislation in the past. Multiple times, in fact. But proposals generally gain very little traction. Discussion is minimal. Initiatives are considered an afterthought. Opposition is widespread. Efforts are not just considered long shots. They are portrayed as futile. 

However, the tenor for the most recent bill seems to be shifting. 

Officials are calling the latest bill the Sports Wagering Act. It is notable for both its content and sponsors. For starters, it is not just seeking to legalize on-site sports betting in South Carolina. If successful, it allows online operators to enter the market. 

What’s more, the Sports Wagering Act is not being pushed by one party alone. It is a bi-partisan initiative. Now, bipartisan proposals are not necessarily prerequisites. This is especially true in heavily conservative-leaning states like South Carolina. Plenty of proposals with a Republican-only slant pick up serious momentum. But bipartisan efforts are always viewed more seriously. So, could this be the year that sports betting in South Carolina becomes legal?

Full Details of Latest South Carolina Sports Betting Bill

After combing through the available information at multiple outlets, here are the most pertinent details from the Sports Wagering Act:

• South Carolina online sports betting would be allowed. It is not clear how many online sports betting sites in the United States would be allowed to enter the market. That number feels unofficial, though many have tossed around eight available licenses as the default

• The Sports Wagering Act calls for a 12.5 percent tax rate. That is below the industry average at this point. In fact, many states have started trying to double or even triple their initial tax rates.
• The legal online sports betting age in South Carolina would be set at 18, which is younger relative to most other markets. For reference from a neighboring state, sports betting in North Carolina requires.

A couple of questions loom after going over the primary details. The biggest one, at least from our vantage point: How will South Carolina sports betting tax revenue be distributed?

Creating a problem gambling fund that receives a percentage of profits is a given. But we have seen states max out that contribution at 5 percent. Might South Carolina be prepared to invest more?

Beyond that, it is not readily apparent which programs and departments would net a lion’s share of the proceeds. Across the country, we have seen sports betting taxes be directed toward programs that cover education, housing, transportation and research, among other things. 

Sports Wagering Act is Considered No-Brainer in the Eyes of Many

Opposition to the Sports Wagering Act isn’t hard to find. Governor Henry McMaster remains among the staunchest, and most powerful, detractors. But more and more seem to be advocating for it. Some are going as far to declare that its passage should be a sure thing. 

“It’s a no brainer,” says House Minority Leader Todd Rutherford, via CBS News 7. “We shouldn’t have to make people drive up to the border to try to get as close to this gate or change their VPN. So, they’re out there appearing to look like they’re in another state who are already doing it. We recognize that we need to get the tax revenue.”

Rutherford’s sentiments are echoed by the Sports Betting Alliance, a coalition that represents the interest of big-name sportsbooks. “[Approximately] 70 percent of South Carolinians support legalized sports wagering, believing that adults in this age should be allowed to bet on sports as a form of entertainment,” explains Michelle McGregor, a representative from the Sports Betting Alliance. “Roughly $1 billion is wagered annually on these offshore sportsbooks that have no oversight or consumer protections and certainly do not generate tax revenue for the state. This is a staggering figure.”

Some good points are made here. And $1 billion is no doubt a staggering figure. But that $1 billion isn’t being bet offshore from South Carolinians alone. It encompasses multiple markets, and perhaps the entire country. 

That is important to keep in mind when wondering why opposition persists. The revenue from South Carolina will be much lower. There are many who believe it won’t be enough to justify the downsides, such as gambling addiction, or the infrastructural resources legalization would require.

So Where Does the South Carolina Sports Betting Bill Actually Stand?

This question is tough to answer. Forced to guess, we would expect the Sports Wagering Act to fail.

Indeed, the support for legalization seems real, among both policymakers and state residents. But even if the House passes the Sports Wagering Act through, drumming up enough support in the Senate is a tall order.

On top of that, Governor McMaster has the power to veto any bill once approved. All indications are he would do just that. Lawmakers have the ability to override such a decision, but that overturning requires an extreme level of alignment across both parties. 

Does the latest South Carolina sports betting bill have that kind of sweeping support? Its bipartisan sponsorship suggests it might. However, only time will tell for sure. 

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