In South Carolina, major policy decisions have always been guided by our values, communities, and state leaders. Sports betting remains illegal here, but it is expected to be debated once again in the upcoming legislative session. Personally, I believe that sooner or later South Carolina will join many other states in legalizing some form of sports wagering. When we do, it should be done the right way: transparently and with South Carolinians, not Washington, determining the outcome.
But right now, that balance is at risk. Federally regulated prediction-market companies are attempting to use a loophole to introduce a form of gambling into South Carolina before our legislature has even had its say. By routing their operations through a federal agency (the Commodity Futures Trading Commission) they are essentially allowing Washington to set the rules for what is, by all practical measures, sports betting. And the problem is growing by the day. Just in the past few days, Fanatics launched operations in a number of new states, including right here in South Carolina, underscoring how quickly outside operators are moving into markets before state lawmakers have weighed in.
This creates a serious problem: if South Carolina eventually legalizes sports wagering, the state should reap the full economic and budgetary benefits. That includes tax revenues, licensing fees, and the opportunity to invest those dollars back into the infrastructure, transportation systems, and community improvements that places like Charleston badly need as we grow. I’ve spent my career working around federal transportation and infrastructure policy. I’ve seen firsthand how critical reliable revenue streams are for helping states fund major projects, whether that’s improving roads, strengthening bridges, expanding transit options, or modernizing local infrastructure.
Prediction market operators are already diverting revenue away from our state and sending it to Washington instead. That means less funding for local priorities, fewer resources for community projects, and fewer dollars available to offset the costs of growth and development, something the Lowcountry is familiar with. If we want to ensure that Charleston benefits from any future sports-betting framework, we cannot allow a federally controlled loophole to siphon off revenue before we even begin.
This is not about supporting or opposing sports betting. It is about making sure that when South Carolina makes its decision the rules are set by our lawmakers, and the financial benefits flow to our communities, not to a federal agency and not to Wall Street-backed platforms exploiting a regulatory gray area.
South Carolina leaders have always taken a careful, deliberate approach to major economic and policy questions. Gambling should be no different. That is why our own Attorney General Alan Wilson co-led a multistate amicus brief supporting states’ rights to regulate gambling on their own. Prediction markets may claim to be “financial instruments,” but when people are betting on sports outcomes, the practical effect is the same as any sportsbook. And the consequences are even more significant: by operating under a federal regulator, these companies are rewriting the rules in a way that bypasses our state entirely.
South Carolina deserves the chance to establish its own gambling framework, one that reflects our values and ensures our communities are the ones who benefit. No federal loophole should be allowed to predetermine that outcome.
In the end, this comes down to protecting our state’s fiscal future. Whether you support legalized sports betting or oppose it, we should all agree that South Carolina, not Washington, should decide how it is managed, how it is taxed, and how any revenues are used to strengthen our transportation systems, invest in infrastructure, and support long-term growth.
South Carolina’s congressional delegation should press the CFTC to halt federally regulated sports prediction markets in states where sports wagering is illegal. No federal agency should be allowed to preempt state law or siphon off future revenue that belongs to South Carolina. If anyone is going to regulate betting in South Carolina, it should be South Carolina, not Washington.
Our state should control its destiny and its dollars. Let’s make sure no federal backdoor takes that away.
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Michael Lynch is the Founder and Principal of Capitol Corridor Consulting, where he advises on policy, infrastructure, and governance issues in South Carolina and at the federal level. He previously served in policy roles at the Federal Highway Administration and the U.S. Department of Transportation, giving him deep insight into how federal decisions shape state and local infrastructure and revenue planning.
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This commentary represents the opinion of the writer, but not necessarily the opinion of Holy City Sinner. If you'd like to submit your own opinion piece for publishing consideration, e-mail christian@holycitysinner.com.