The race for the governorship of South Carolina has become an unexpected referendum on the future of gambling. Three Democrats and five Republicans vying for the office have diverged so sharply that their stance on gambling has emerged as one of the key dividing lines between candidates within each party.
Three major directions are on the agenda. The first is sports betting and online betting, which have effectively already entered the state through so-called prediction markets. The second is casino construction, most notably a project along the I-95 corridor. The third is the return of gaming machines and video games through bills on skill-based games. The outcome of each of these directions may depend directly on the position of the new governor.
What the Governor Can and Cannot Do
The Governor of South Carolina does not have the authority to change anti-gambling laws unilaterally. However, public support from the governor can push a bill forward, while veto power can kill any initiative. That is precisely why the gambling industry and lobbyists view the November election as a turning point.
Outgoing Governor Henry McMaster has consistently blocked such initiatives. With a new governor in office, a guaranteed veto may no longer exist, and this opens a window of opportunity.
The "Single Venue" Bet and Jobs
Among casino supporters, Democrat Billy Webster stands out. He supports construction but sets strict conditions:
- Only one casino in the entire state.
- Located exclusively in a poor rural county that needs jobs.
- Infrastructure readiness (roads, water supply, sewage) to handle an influx of tourists.
- Direct benefit to the state and the county.
Billy Webster acknowledges the risks for vulnerable groups but draws a parallel with the lottery, which voters approved in 2000 despite similar concerns.
Republican Josh Kimbrell, though he dropped out of the governor's race, demonstrated a position that matters as an indicator of a potential vote in the Senate. He conditionally supported a casino if it were placed in areas with low industrial capacity rather than in densely populated regions.
Criminal Risks, Human Trafficking, and the "High Price of Revenue"
Opposition to casinos proved equally diverse. Attorney General Alan Wilson pointed out that the "criminal elements" casinos bring with them in other states could outweigh any financial benefit. "Whatever revenue you get coming in can be offset by what you pay going out," he stated at the debates.
Republican Rom Reddy focused on the connection between casinos, adjacent hotels, and sex trafficking. Through his family's charitable foundation, he learned about the scale of the problem, particularly regarding minors. Placement along interstate highways, he argued, facilitates the transport of victims across state lines.
Congressman Ralph Norman pledged to "fight" any casino, while Democrat Mullins McLeod called such establishments a breeding ground for crime and human trafficking. At the same time, Rom Reddy draws a clear distinction between formats: online gambling, including sports betting, he considers a personal choice for adults.
Beyond Casinos
On non-casino formats, positions are less clear-cut. Alan Wilson acknowledges that technology makes oversight nearly impossible and is willing to "take a look" at the online segment. Pamela Evette expressed willingness to "hear out" arguments in favor of virtual horse race betting to support the state's equine industry, although such bills have consistently failed in recent years.
"Let the Voters Decide"
Democrat Jermaine Johnson and Republican Nancy Mace propose putting the question to a vote. Jermaine Johnson, whose father struggled with gambling addiction that left the family without housing, insists on mandatory protective measures. Nancy Mace points out that state residents are already placing bets through prediction markets, and that a federal court classified this instrument as a financial swap, subjecting it to federal regulators and effectively stripping the state of any ability to oversee it.
In the context of the rapid growth of online gambling, however, debates about legalization are increasingly symbolic in nature. Slots, crash games, and poker have long become mainstream for those who play online. According to industry analysts, live dealer games are now actively joining these formats. The trend is well illustrated by the growing popularity of titles such as MONOPOLY Live, Dream Catcher, and the red door roulette live casino game show, which is appearing on an ever-growing number of online platforms. And this is only a small part of the overall variety of such entertainment.
All of this is accessible directly from a phone, with no meaningful ability for state authorities to control the prevalence of such entertainment. This is precisely the reality that proponents of regulation have in mind when they argue that prohibitions no longer work.
Current lottery legislation requires that a portion of unclaimed prizes be directed toward addiction treatment. The current year's budget allocates $100,000 for these services.
Campaign Money and Mutual Accusations at the Debates
Ralph Norman accused opponents of receiving money from the gambling industry. Campaign finance reports revealed the following:
- Casino project developer Wallace Cheves of Greenville donated more than $20,000 to Alan Wilson and Pamela Evette (directly or through his companies), amounting to less than 1% of their total fundraising.
- Pamela Evette also received $1,500 from Churchill Downs, the organizer of the Kentucky Derby.
- A single contribution of $3,500 to another Republican remained insignificant, as Josh Kimbrell dropped out of the race.
Wallace Cheves declined to comment on the situation.
Bills and the Prospects for the Next Session
Last year, a casino bill for the I-95 corridor, introduced by Republicans, advanced to a vote in the House of Representatives with bipartisan support. However, the vote never took place. In January, Republicans returned the document to committee, effectively killing it on the eve of the elections. Senate Minority Leader, Democrat Brad Hutto, has already pledged to reintroduce the initiative.
Why Sentiment in the Legislature Is Shifting
The composition of the legislature has changed dramatically. Nearly half of the Senate (22 of 46 senators) was not serving there ten years ago. About two-thirds of the House membership has turned over. Only 15 current legislators would have been in office during the era of legal video poker. This personnel shift, combined with Henry McMaster's departure due to term limits, is expected to intensify lobbying activity.
The Shadow of Video Poker That Still Haunts the Capitol
The story began in 1986, when a two-word amendment in the budget, passed without debate, effectively legalized video gambling. The industry grew to 34,000 machines, circumventing any restrictions. Governor David Beasley declared war on video poker, calling it the crack cocaine of gambling, but lost his election after the industry spent millions to remove him from office. A final ban came only by order of the state Supreme Court in 2000. Senator Chip Campsen, a veteran of those Wild West battles, warns: "It was destroying people's lives, and we had to fight tooth and nail to get rid of it. And it could come back."
Dragon's Ascent and Skill-Based Games Have Launched a New Round of Battles
In 2025, the state Court of Appeals heard the case of the video game Dragon's Ascent, in which players placed bets and shot at dragons on screen for cash. The court declined to recognize it as a legal skill-based game. In response, the industry attempted to enshrine in law the phrase "any non-card-based predominant skill game." Bar and restaurant owners asked the Senate to pass the bill, arguing that revenue from the machines helped cover rising insurance premiums.
The House of Representatives approved the document by a vote of 99 to 9. The bill advanced to the full Senate Judiciary Committee. However, Chip Campsen and SLED (State Law Enforcement Division) attorney Adam Whitsett warned that it would effectively bring back video poker. Senator Bryan Adams objected, accusing SLED of pressuring businesses. The outcome was defeat by 13 votes to 9.
Pace-O-Matic stated that it does not operate in the state but is seeking a resolution through the courts and legislation. The company has also faced issues outside South Carolina: a case in Kansas was dismissed by a court, and in Pennsylvania a former employee was accused of accepting bribes to suppress complaints.
Three Directions Where the New Governor's Position Will Be Decisive
The next legislative session and the arrival of a new governor will determine whether casino projects, the expansion of online betting (including horse racing), and the legalization of skill-based gaming machines have a chance of moving forward. Equally important is the question of what protective safeguards legislators will be prepared to write into law alongside them.