Bill to legalize sports betting in South Carolina to face tough battle in legislature

A new bill aiming to legalize sports betting in South Carolina is facing an uphill battle at the state legislature amid the governor's longstanding opposition to gambling. While dozens of states have legalized the activity since a federal ban was overturned in 2018, South Carolina doesn't seem ready to join their ranks anytime soon.

The legislation would create a state-run sports betting system, which bill sponsors claim could generate over $13 million in tax revenue. Under the plan, up to eight entities would be licensed for online sports wagering, under the oversight of a state commission. This body would be responsible for selecting the licensed operators and ensuring the program meets the standards outlined in the proposal.

Supporters further argue that residents are already betting on sports, only that the wagering takes place through the black market and offshore operators. By legalizing the practice, the state would be able to regulate it, having more control over betting than leaving it in the hands of illegal operators, while also directing part of the tax revenue to fund resources to help individuals with gambling addiction.

The proposal would also help the state retain sports betting dollars currently flowing to North Carolina, as many South Carolinians seeking to wager through popular platforms like FanDuel or DraftKings drive over state lines to access them.

With the activity taxed at 12.5%, sports betting could become an alternative source of revenue for the state, with most funds directed towards the state's general fund and local infrastructure projects. The plan could bring in between $13 and $31 million in its first year alone, according to the bill's Fiscal Impact Statement.

However, Governor Henry McMaster is unlikely to sign the bill —or any kind of gambling legislation— should it land on its desk. McMaster has previously said there is no place for gambling in the Palmetto State, meaning sports betting supporters are set to face an uphill battle at the legislature.

Opponents of sports betting have raised concerns about gambling addiction and financial consequences for bettors. While the bill does include restrictions to prohibit minors, athletes, referees and others involved in sports from placing bets, these provisions are seemingly having no effect in swaying those against the activity.

In a statement to News 19, Brandon Charochak, a spokesman for the Governor, said: "Governor McMaster has long opposed efforts to legalize casino and sports gambling in South Carolina. The negative repercussions from casino or sports gambling far outweigh any minimal financial benefit the state may receive and would damage our reputation as a great place to live, work and raise a family."

The sports betting bill currently remains in committee. It is several steps away from making it to the House floor for debate and, even in the case it arrives on the floor, odds of passage are unlikely given the state's apprehension to expanded gambling.