South Carolina legislators have taken another step toward legalizing sports betting with the pre-filing of Bill 3625, the South Carolina Sports Wagering Act. This effort comes after previous failed attempts to establish a regulated framework for online gambling and horse racing in the state.

South Carolina proposes comprehensive sports betting bill:

The bill, spearheaded by Rep. Chris Murphy (R) alongside Reps. Heath Sessions (R) and J. Todd Rutherford (D), aims to introduce sports betting under strict conditions. Filed on December 12, 2024, it sets out a structured regulatory framework to ensure industry integrity and support public welfare initiatives.

If enacted, the legislation will establish a nine-member South Carolina Sports Wagering Commission, tasked with regulating the market, overseeing compliance, and promoting responsible gambling measures. Operators would only be allowed to offer sports betting through licensed platforms or mobile apps.

The bill also imposes significant financial obligations. Approved operators must pay a $100,000 application fee and a $1 million licensing fee, valid for five years. Market access will be limited to eight operators, ensuring controlled growth.

A 12.5% privilege tax would apply to operators’ adjusted gross receipts, as reported by Spectrum News. Revenue generated from this tax would be allocated to various initiatives, including mental health services focused on gambling addiction prevention and treatment. Additional funding would support the state’s infrastructure projects and general public services.

The bill also mandates strict operational protocols. Operators must meet financial stability and security standard, implement identity verification measures to prevent fraud, prohibit wagers from minors or bets on youth sports, and refrain from offering credit for gambling.

Safeguards to prevent gambling harm are a core feature of the bill. Licensed operators would be required to provide tools for self-exclusion and limit betting activity to promote responsible participation.

The proposed commission would also monitor betting integrity by identifying irregular betting patterns, collaborating with sports bodies, and imposing penalties for any breaches, such as unauthorized bets or game manipulation.

Challenges and historical context:

Despite renewed momentum, resistance to gambling legislation remains a formidable challenge in South Carolina. Gov. Henry McMaster has been a vocal critic of gambling expansion, presenting a key hurdle to the bill’s passage.

Previous attempts to legalize online sports betting, such as HB 3749 in 2023, stalled in committee despite bipartisan support. Similarly, earlier initiatives led by Rep. Russell Ott focused on supporting South Carolina’s equestrian industry through online horse racing bets. While these efforts achieved limited success, such as passing the House by a narrow vote, they ultimately faltered in the Senate.

Former gubernatorial candidate Joe Cunningham brought sports betting into the spotlight during his 2022 campaign, emphasizing the unregulated nature of the existing underground market. He argued that legalization could generate critical tax revenue to fund public priorities, such as education and infrastructure.

The bill’s sponsors continue to highlight the financial opportunities legalization presents, with projections of substantial tax revenue and the elimination of a $2.5 billion illegal betting market. Neighboring states like North Carolina have successfully introduced similar legislation, intensifying pressure on South Carolina to remain competitive and address growing public interest.

The South Carolina General Assembly will reconvene on January 14, 2025, though the exact timeline for Bill 3625’s consideration remains uncertain. Proponents remain optimistic that the bill’s focus on responsible gambling, tax revenue allocation, and regulatory oversight will pave the way for its success.