Will South Carolina Ever Legalize Online Casinos? 2 Considerations

David Hucks

South Carolina’s gambling laws remain among the strictest in the United States. The state’s legislative and executive branches persistently resist reform efforts relating to gambling, including the prohibition on online casinos. Currently, no legal framework permits traditional online casinos, poker rooms, sports betting, or other forms of online wagering. Residents cannot access online casinos for real-money gaming under state regulations, and attempts to change these laws have largely faltered.

While neighboring states like North Carolina advance in legalizing various forms of gambling, generating millions in tax revenue, South Carolina shows little momentum. Lawmakers, including Governor Henry McMaster, have resisted these changes for years, and his opposition continues to obstruct gambling expansion. Since taking office in 2017, McMaster has consistently campaigned against efforts to introduce sports betting. Supporters of reform struggle to push forward, facing both political resistance and a lack of widespread legislative support.

Recent Legislative Efforts

One notable attempt was the 2023 revision of a sports wagering bill that aimed to legalize betting with a 10% tax rate. The bill sought to allow sportsbooks tethered to PGA Tour stops and the Darlington Raceway, reflecting the unique relationship between sports and potential betting markets. Like Tennessee and Vermont, South Carolina would have only allowed mobile wagering had the bill passed. But after making it through a key subcommittee in 2023, the bill stalled and has not moved forward during 2024.

Previous legislative attempts follow a similar pattern. A 2021 bill intended to form a research group for studying gambling’s social and economic effects, but no substantial progress resulted. In 2022, House Bill 3095 aimed to legalize sports betting, pari-mutuel wagering, and other casino gaming activities but likewise faded away without notable advancement. Nearly half a decade into ongoing efforts, there is still no legal avenue for sports betting or real-money casino gambling.

One factor frequently cited in reform discussions is the success of gambling legalization in North Carolina. In the first months of online sports betting operations, North Carolina’s tax revenues from bets have exceeded $50 million, sparking interest back in South Carolina. Industry experts, such as Stephen Shapiro at the University of South Carolina, predict that this financial success may encourage lawmakers to reconsider athletic wagering as soon as 2025. However, altering legislative perspectives hinges on overcoming entrenched opposition from McMaster and others concerned about gambling’s potential social costs.

Platforms Eyeing the South Carolina Market

If South Carolina ever legalizes online casinos, various platforms already familiar to nearby states could be among the first to enter the market. North Carolina has seen major operators launch their services quickly after legalization, and South Carolina could follow a similar path. Companies like DraftKings and FanDuel, which currently provide daily fantasy sports for South Carolina residents, would likely apply for licenses and expand their services to include online casino games if allowed in the future.

Other companies, like BetMGM and Fanatics Casino, have already found success by entering states with newly legalized gambling, and they could plan for the South Carolina market early. Fanatics, most known for its sports merchandise, has branched into the gambling sector, presenting a unique combination of retail and betting services. In any future legal environment, South Carolina would probably see a competitive market entry from multiple operators, seeking to meet new demand.

The Role of Economic Considerations

The potential revenue from gambling taxation draws attention from proponents of legalization, especially given neighboring states’ results. North Carolina’s rapid success indicates the scope of the opportunity. In South Carolina, estimates suggest that as much as $2.5 billion annually is wagered illegally through offshore or unregulated platforms. Capturing these funds domestically, proponents argue, would generate major tax income. Tax benefits could be allocated towards education or infrastructure, providing vital resources to the state budget.

On the other hand, gambling opponents frequently argue that social costs could neutralize these economic benefits. Gambling addiction, a concern raised during each legislative session, continues to influence policymakers wary of expanding access to online casinos. South Carolina lawmakers have repeatedly referenced public health studies that highlight gambling’s potential to cause financial harm and family breakdowns. Adopting adequate consumer protections would likely be an essential part of any future regulation debate, ensuring that effective safeguards prevent and alleviate abuse.

The Future of the Online Casino in South Carolina?

Online Casino

For now, Governor Henry McMaster‘s steadfast stance against gambling expansion, reiterated during his 2022 campaign, remains a major block in any comprehensive legislative movement. Even if McMaster were replaced, political inertia may delay meaningful consideration until 2025 or beyond. In the meantime, nearby states continue to position themselves as centers for legalized gambling, increasing pressure on South Carolina lawmakers to act.

Without casinos, the only legal alternatives include social and sweepstakes casinos, where players can engage with games that mimic online casino play using virtual currencies or prizes. Platforms like WOW Vegas and Chumba Casino operate under these legal principles, allowing residents to participate without risking real money. However, these options are limited and lack the genuine cash opportunities that come with fully regulated online gambling.

Residents hoping to enjoy the broader gambling options found elsewhere may need to continue waiting until more proactive leadership emerges or the success seen in neighboring states prompts further changes. Until then, the future of online casinos remains unclear, leaving residents to rely on social casino platforms or engage in out-of-state wagering for their gaming needs.

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