South Carolina: New Attempt to Legalize Online Sports Betting

When North Carolina became one of 38 states to legalize online gambling, its industry quickly became a major moneymaker. In the first two months of operation, betting volume in North Carolina exceeded $1 billion, and tax revenues for the state grew into the hundreds of millions of dollars.

Steven Shapiro, a professor of sports and entertainment management at the University of South Carolina, told the Charleston City Paper that the financial benefits to South Carolina are one of the key reasons why efforts to legalize sports betting are ongoing, following North Carolina's example.

"The tax revenue success in North Carolina would be attractive. I think there's a pretty good chance of legalizing (sports betting) in the next couple of years," Shapiro said.

Despite these financial incentives and the successes of neighboring states, South Carolina's path to legalizing online sports betting has been rocky. In 2022, Joe Cunningham, the Democratic candidate for governor, introduced two bipartisan bills. However, despite intense lobbying efforts, they failed to gain traction.

The potential millions of dollars in tax revenue that South Carolina could receive may not be enough given the current political climate. Governor Henry McMaster has consistently opposed legalizing sports betting and has shown no signs of changing his mind. Even if proponents find the political will to push through and garner the necessary support, they will still have to convince the public.

Convincing South Carolinians of the benefits of online betting may be increasingly difficult, especially given a recent study from the University of Southern California and the University of California, Los Angeles, that vulnerable populations face significant risks associated with gambling. One of the study’s authors, Brett Hollenbeck, said easy access to betting significantly worsens the quality of life for low-income people.

“A small but significant portion of the state’s population would face serious financial hardship once gambling is legalized,” Hollenbeck said.

While sports betting advocates plan to continue their efforts, the current mood makes legalization by 2025 unlikely. Any new proposal must carefully consider the economic benefits and social risks, as well as navigate political resistance. Industry experts agree that it's only a matter of time before online betting is legalized in South Carolina, but the new bill may not be the deciding factor.