South Carolina, known for its conservative stance, is among some of the most restrictive states when it comes to gambling. With no land-based casinos, no horse racing, and an outright ban on online gambling, it starkly contrasts with its northern neighbor, North Carolina.
Currently, South Carolina is one of only twelve states in the US that outlaw entirely sports betting; however, there is one exception. Daily Fantasy Sports (DFS), an online form of sports betting where players create virtual teams of real athletes and compete based on their real-time performance throughout the week, is technically legal. Despite the legalization of DFS bets, the current gambling landscape in South Carolina is extremely limited, thus many players in online offshore gambling activities.
Due to the growing numbers of players turning to these online platforms, many make use of instant withdrawal casinos, which, according to iGaming expert Pavel Pudakov, not only offer players payouts in mere seconds but also offer players loads of enticing perks like exception cashback rewards, an enormous variety of games, exceptional bonuses, and various payment methods like crypto that are faster, safer, and more transparent than traditional methods.
While these offshore casinos offer gamblers enjoyable experiences, the growing success of legalized and regulated sportsbooks and online casinos in nearby states is sparking renewed discussions about legalizing sportsbooks and expanding their gambling landscape in the Palmetto state.
Economic Success in North Carolina Fuels Debate
North Carolina generated over $50 million in tax revenue from online gambling activity this previous fiscal year, which ended on July 1st. This is monumental, considering North Carolina only legalized sports betting in March this year. This has led to many debates among South Carolina lawmakers who see the potential for similar economic benefits and has aroused interest from many advocates for expanding the state’s gambling landscape in 2025.
Stephen Shapiro, from the University of South Carolina’s Department of Sport and Entertainment Management, noted the growing appeal of North Carolina's tax revenue success. He suggested that South Carolina could move toward legalizing sports betting in the next few years, identifying 2025 as a key year for potential legislative progress.
However, entrenched opposition remains a significant hurdle. Governor Henry McMaster, a steadfast opponent of gambling expansion since taking office in 2017, continues to resist such reforms, solidifying South Carolina’s reputation as one of the nation’s most gambling-resistant states.
The Economic Case for Legalization
Advocates for gambling reform emphasize the significant economic benefits South Carolina could reap. Estimates suggest residents wager approximately $2.5 billion annually through offshore or unregulated platforms. Legalizing and taxing this activity could redirect substantial revenue to the state.
A recent proposal estimated that legal sports betting could generate at least $100 million annually for South Carolina, with 80% of this revenue allocated to the state’s general fund. Proponents argue these funds could address critical needs, including education, infrastructure, and the state’s pension fund deficit.
North Carolina’s success serves as a compelling example. Gambling revenues in the Tar Heel State contribute to public projects such as education and infrastructure. Advocates in South Carolina contend that capturing these funds domestically could provide similar benefits and help fund essential state projects while, in turn, reducing local gamblers who participate on offshore and illegal gambling platforms.
Past Legislative Efforts and Their Shortcomings
The path to legalizing gambling in South Carolina has been fraught with challenges. Recent attempts to introduce sports wagering have failed, highlighting the difficulties of overcoming political and cultural resistance.
One notable effort was a 2023 sports wagering bill proposing a 10% tax rate on operators. The legislation aimed to leverage South Carolina’s sports culture by allowing sportsbooks to operate at iconic venues like PGA Tour stops and Darlington Raceway. However, the bill limited gambling to mobile platforms, a model adopted in states like Tennessee and Vermont. Despite its strategic focus, the bill failed to gain traction.
Two other similar proposals also faced roadblocks:
House Bill 3749 (HB 3749) sought to legalize up to eight online sportsbooks without requiring a constitutional amendment. This streamlined approach sparked controversy over its legality under the state’s current laws, leading to the bill’s stagnation in committee.
House Bill 3395 (HB 3395) proposed a constitutional amendment to legalize sports betting, requiring voter approval via a general election ballot. Despite its straightforward approach, the bill failed to garner sufficient support in either legislative chamber.
These legislative failures emphasize the deep-seated resistance to gambling reform in South Carolina.
Challenges to Reform
Despite the economic potential, significant obstacles remain. Governor McMaster’s firm opposition continues to be a significant barrier to reform. During his 2022 campaign, McMaster reiterated his commitment to blocking gambling expansion, reinforcing his role as a gatekeeper against change.
He argues that the social costs outweigh the economic benefits, a sentiment echoed by other lawmakers. Even if McMaster were to leave office, South Carolina’s deeply rooted political and cultural opposition to gambling could delay progress. While economic pressure from neighboring states may influence the conversation, a leadership or public sentiment shift will likely be necessary to drive meaningful reform.
Potential Market Players
If South Carolina legalizes sports betting in 2025 or in the coming years, both established platforms and emerging players are expected to enter the market quickly.
Established Operators
Companies like DraftKings and FanDuel, which already provide daily fantasy sports in South Carolina, are well-positioned to expand into sports betting. These platforms have demonstrated their ability to adapt quickly to newly legalized markets in other states.
Emerging Players
Operators like BetMGM and Fanatics Casino are also poised to compete. Fanatics, best known for its sports merchandise, has expanded its offering with a distinctive blend of retail and betting services, potentially providing players with a unique and enjoyable experience if they were to enter the market. This growing sector could create a competitive market in South Carolina, attracting operators eager to meet pent-up demand.
Looking Ahead to 2025
While immediate change appears unlikely, 2025 could mark a turning point for South Carolina’s gambling laws. By then, economic considerations and the successes of neighboring states might prompt a reevaluation of the state’s stance. If leadership changes or mounting financial pressures reshape the political landscape, lawmakers may revisit proposals to legalize sports betting or online casinos.
Advocates suggest that a well-structured legalization framework addressing economic and social concerns could win over skeptics. By emphasizing the regulation of existing illegal activities and channeling tax revenues into critical public needs, proponents hope to make a compelling case for reform.
Conclusion
Despite repeated legislative efforts, entrenched opposition led by Governor McMaster has kept reforms at bay. However, as neighboring states like North Carolina reap the benefits of legalized sports betting, pressure on South Carolina lawmakers is likely to grow.
While 2025 could be a pivotal year for renewed efforts, significant challenges remain. Political inertia and moral concerns continue to dominate the conversation, but the potential economic gains might eventually tip the scales. Until then, South Carolina residents must either look to neighboring states or rely on unregulated platforms for gambling opportunities.
