New Bill Proposes Sports Betting Legalization in South Carolina

A proposed bill for 2025 aims to legalize sports betting in South Carolina, a state currently with minimal legal gambling options. HB 3625, pre-filed in the House of Representatives on December 12, has been referred to the Committee on Ways and Means for consideration when the legislative session opens on January 14.

Bipartisan for Sports Betting Legislation

The bill, officially titled the South Carolina Sports Wagering Act, is led by Republican Rep. Chris Murphy as the primary sponsor. It also has bipartisan backing from Rep. Heath Sessions (R) and Rep. J Todd Rutherford (D), who was involved in a previous sports betting initiative in 2023. Under HB 3625, a South Carolina Sports Wagering Commission would be established to oversee the regulatory framework for sports betting in the state. More info about it you can find it here.

The bill includes provisions that would create a tightly controlled sports betting market. A maximum of eight licenses would be available to approved operators. Importantly, any company applying for a license must already be operational in at least five other jurisdictions to be considered eligible.

Financial requirements outlined in HB 3625 include a $100,000 application fee and a licensing fee of $1 million for operators that secure approval. The licenses would remain valid for a five-year term.

To ensure significant contributions to the state, a 12.5% tax would be imposed on adjusted gross revenue generated by operators. The revenue is intended to fund mental health programs across the state, with a focus on prevention and treatment for gambling-related disorders.

Challenges and Previous Setbacks

Despite growing momentum, South Carolina faces considerable challenges in ing gambling legislation. Governor Henry McMaster has publicly opposed gambling measures and remains in office until 2027. His firm stance presents a substantial hurdle for HB 3625’s advocates.

The failure of past initiatives also highlights the uphill battle for sports betting legalization. A similar proposal, HB 3749, was introduced in January 2023 but failed to progress past committee deliberations. The bipartisan nature of the current proposal, however, could strengthen its prospects compared to previous attempts.

One factor driving South Carolina lawmakers to reexamine sports betting is the success of its northern neighbor. North Carolina launched its legal sports betting market in March 2024, and the state has reported impressive results over the first nine months of operations. During that period, North Carolina’s licensed sportsbooks handled approximately $4.8 billion in wagers, generating $547 million in gross revenue. The state’s 18% tax rate on operators brought in nearly $100 million in tax revenue.

North Carolina’s thriving sports betting market demonstrates the potential economic benefits of legalizing wagering, which may compel South Carolina lawmakers to act on HB 3625 more seriously.

South Carolina’s General Assembly is scheduled to reconvene on January 14, 2025. While HB 3625 has been pre-filed, it remains unclear when lawmakers will officially debate the proposal. If ed, the bill would mark a significant shift in a state where legal gambling is largely limited to the South Carolina Education Lottery. Currently, there are no regulated casinos, horse racing, or online sports betting options available.

HB 3625 represents a potential turning point in South Carolina’s gambling landscape, as it seeks to modernize the state’s laws and capitalize on the growing popularity of sports betting nationwide.

Source:

”S.C. lawmakers consider a new sports betting bill in 2025”, spectrumlocalnews.com, December 16, 2024.