South Carolina is far from being a gambling hub. The state takes a conservative stance and has some of the strictest anti-gambling laws in the country. It’s the only one on the East Coast that voted Republican by a large margin in 2020. You won’t find a brick-and-mortar casino or horse racing in this deep red southern state.

Governor Henry McMaster, who has been in office since 2017 and will continue until at least 2026, remains a significant barrier to legalizing gambling. Despite the hurdles, experts believe that 2025 could see a renewed effort to legalize wagering in the state.

This isn’t the first attempt to legalize sports betting. A 2023 bill to legalize wagering didn’t gain real traction in the legislature. While previous attempts have failed, there’s a sense that the outcome might be different this time. So why is there hope for a serious new effort? The answer lies in three key factors: the potential for revenue, growing momentum, and the influence of neighboring North Carolina.

The 2023 Bill Was Meant to Allow Digital Betting Only

In 2023, lawmakers proposed a bill that would have brought digital sports betting to South Carolina. The biggest highlight of the bill is the 10% tax rate. This plan included linking some licenses to the state’s Darlington Raceway and PGA Tour events and a few stand-alone licenses.

South Carolina would have joined Vermont and Tennessee in offering mobile betting only if it had passed. The bill made it through a key subcommittee in 2023. However, it stalled in 2024.

South Carolina lawmakers are still debating whether to legalize wagering, but operators in North Carolina are already busy with both digital and retail betting. The latter launched its betting operations in March. By July, they had handled $2.6 billion in wagers and paid taxes worth $57 million. The neighboring state is miles ahead, and experts believe this is South Carolina’s time to begin reaping the potential benefits of this sector. 

Prospects for Legalization Looking Favorable Soon

Currently, 38 U.S. jurisdictions permit some form of legalized gambling. This is after the Supreme Court’s 2017 ruling overturned the federal law that banned states from allowing sports betting. Stakeholders and experts believe South Carolina is nearing a chance to take advantage of this opportunity.

In an interview with the Statehouse Report, Stephen Shapiro from the University of South Carolina’s Department of Sport and Entertainment Management had this to say:

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“The success in terms of the tax revenue generated already in North Carolina will be enticing. I would imagine that we’re going to see more of those sports gambling bills and that there’s a good chance the state would legalize it in the next couple of years.”

In 2022, Joe Cunningham pointed out that sports betting is already happening in South Carolina. However, the industry is unregulated and run by bookies, and the state gets nothing. The Democratic candidate for governor argued that it was time to decriminalize sports wagering and bring it out into the open. He suggested that the state could use the tax revenue to lower taxes and invest in education and infrastructure.

On the other hand, there are widespread concerns about the social effects of legalizing gambling and making it easily accessible to everyone. While there’s optimism in this new effort to legalize sports betting in South Carolina, strong opposition will likely continue.

How Beneficial is A Legal Betting Scene for South Carolina?

Experts quote the following factors when supporting legalized gambling:

• Curbs Illegal Money and Terror Financing

As Joe Cunningham points out, gambling is widespread in South Carolina. This underground trade is difficult to control even with legal measures and covert efforts. Lack of regulation creates opportunities to use the proceeds for illegal activities, including financing terrorism. Legalization comes with sufficient regulation to curb such vices.

• Huge Revenues

North Carolina perfectly illustrates this point. The state’s $57 million tax revenue far exceeds the $64 million it expected to collect for the entire year. These funds could go a long way in facilitating development projects in the Palmetto State.

• Consumer Protection

A legalized gambling scene means the appropriate agencies can oversee, check, and audit betting establishments to ensure fairness and safeguard players. It also helps in spotting and managing individuals who may have gambling issues.

• Employment opportunities

Huge tax revenue aside, legalizing gambling enhances job prospects. South Carolina currently has an employment rate of 57.1%, and additional opportunities could change the lives of many households. Residents can take up various roles in casinos, online platforms, and related businesses. The opportunities span from management and security to customer service and technology positions.

• Tourism Opportunities

A South Carolina version of Las Vegas is not a pipe dream. It’s possible to create a favorable environment for operators to thrive and attract enthusiasts from all over the world. It all begins with legalization and proper regulation.

South Carolina Has Alluring Potential to Sports Betting Establishments

With a population of over 5 million, South Carolina could be an appealing market for gaming companies looking to offer sports betting. The state has a bigger population than several others that already have mobile betting, such as Kentucky, Louisiana, Kansas, Iowa, and Connecticut. Similarly, South Carolina is experiencing rapid growth. Most new residents come from areas where sports betting is a popular part of the culture, like the Northeast.

Understandably, the state lacks professional teams from the major North American sports leagues. However, it has a passionate fan base for both Clemson University and the University of South Carolina. Additionally, South Carolina hosts annual events for the PGA Tour and NASCAR.

This is an excellent place to start as stakeholders seek additional opportunities to capitalize on this huge potential.