South Carolina has recently seen the introduction of a new House bill. It would open the doors for South Carolina to legalize sports betting within the state. If passed, this could also lead to casinos and horse racing.
If introduced, a new bill could see the creation of the South Carolina Sports Wagering Commission. Amongst a range of tasks, it would set up regulation and licensing and a private tax for the gambling sector. Brought by Rep. Chris Murphy, he has said he views this as a vital source of revenue for the state. He also believes that this will turn people away from unregulated offshore betting and allow the state to better control and benefit from it. It is believed the tax relief will fund education, infrastructure, and local governments and go towards help for gambling addiction.
Changes to South Carolina Gambling Laws
The evidence of this comes from geo-tracking. It has been shown that, during major sporting events, many people go over the lines to North Carolina to place bets. Sports betting is legal in this state. This means that the neighbouring state benefits from the revenue and all it brings. Since legalizing sports betting in 2024, this has amounted to $729.3 million in gross revenue.
This is a similar story across the US. Sportsbook operator have improved their services exponentially. Now, there is plenty of competition and a thriving ecosystem. Sites like Covers.com rank and review the best ones based on factors like bonuses, customer service and range of markets. This has meant it is easier than ever for consumers to get transparent, safe providers to bet with. All of this has grown the market and industry.
There are, of course, those in opposition and this is understandable in a state that only legalized no-profit raffles in 2015. One of the voices long opposed to gambling here is Gov. Henry McMaster, who continues to say that the negative consequences outweigh the benefits. He believes it may damage the state's reputation as a great place to live, work, and raise a family.
On average, states can expect to make around $2.4 billion in tax proceeds per year should they allow gambling. However, there are a lot of variables that can alter this sum in either direction. It is also worth noting that sports betting is also showing signs of decline in some states where it has been legalized. Around 12 states saw drops between 2023 and 2022. However, this can not simply be attributed to post-pandemic returns to normality. This March saw Iowa and other states make losses year on year.
Changes to Casino Regulation
It is not just sports betting where changes are afoot. Legislation is being looked over that would see the building of new commercial casinos in the state. It has been considered by the state House of Representatives Ways and Means Revenue Policy Subcommittee. Known as House Bill 4176, it was filed in March and discussed last week.
The bill will allow commercial casinos in counties that have passed ordinances in support of slot machines. In addition, they must contain a section of Interstate 95.
The specifics of this are because of a very unique business interest, which will be brought to Santee Outlets in Orangeburg County. This is a prime development site that will be repurposed by businessman Wallace Cheves. He plans to turn the former outlet into a casino resort on the land he purchased back in 2017. The proposed South Carolina Gaming Commission would be in charge of this, with House Bill 3625 covering the sports betting aspect.
Horse Racing
One of the strongest voices in favor of a bill allowing betting comes from the South Carolina equestrian community. They believe that allowing betting on horse racing would ignite a once-thriving industry that has floundered as of late.
However, of all the bills being discussed, the Equine Advancement Act has the most chance of being passed. This would allow gambling on horse racing to take place on approved applications, while other forms of gambling, such as slots, remain illegal.
The proceeds from this would then go directly to the state's equine industry and nowhere else. This will help with training, farming, and horse racing. Hopefully, the state will then be able to compete with others on a much bigger scale.
The US horse industry brings in around $2 billion in revenue each year. It also creates around 29,000 jobs in the United States. Equestrian life has been a huge part of South Carolina's history and remains so. Many of its streets remain unpaved for horse traffic. Yet the barns that once provided community sanctuaries are vanishing as real estate moves in.
The owners of the Aiken Steeplechase track in South Carolina have said it only gets used twice a year. Introducing betting would allow them to open this up much more.
The projection for how much the industry could benefit has also been in place for a long time. Back in 2022, a study suggested that between $40 million and $70 million could be placed by bettors in the state on horse racing wagers alone.
A History of Gambling in South Carolina
The obvious worry is that introducing gambling harms those in the state. This can be through elevated debt levels, addiction, and other related problems. Regulations must be astute and responsible. Historically, South Carolina's answer to this problem has been to ban it entirely. This is partly down to its high levels of religious observance in the area.
There was a period of relaxation during the nineties. This was due to the introduction of video poker machines. However, this was shut down by June 2000, when a Supreme Court Ruling found them unconstitutional. In the age of the internet and smartphone connectivity, this has become harder to police.
Should gamblers want to place bets or use casino games, they can. They only need to go over state lines to a legalized state. Alternatively, they can connect to offshore casinos. This is a worry because they have the possibility of being unregulated. A lot of lost tax revenue goes to them that could be kept within the state. It is estimated they are missing out on around $43.1 million per year due to this.
If South Carolina wants to get gambling right, then legalizing all forms at once seems foolish. A more measured approach seems the best option, which seems likely to start with horse racing apps. New casinos have the benefit of bringing jobs, but it may still be some time before we see online casinos.