The latest sports betting bill in South Carolina was heard in a conference subcommittee hearing earlier this week, but the five-member board took no vote. This inaction leaves the door ajar for mobile sports betting, but it will likely not gain traction this session.
Toeing the Line
South Carolina is a barren gambling region with no casinos, sportsbooks, or gaming of any kind except for the state lottery, raffles, and bingo. Therefore, bringing any form of regulated gaming to the market is a tall task, as evidenced by the latest sports betting bill, S 444, which got the silent treatment from the five members on the Senate Labor, Commerce, and Industry Committee.
The subcommittee abstained from voting on the measure, which is preferable to a no vote, because it allows the debate to continue. It is better to be ignored than outright shunned; however, no new hearing has been scheduled, and the chances of it being heard before this year’s legislative session ends on May 7th are slim.
However, the subcommittee did vote 3-2 in favor of allowing the PGA Tour and NASCAR to be licensed for sports betting should that day eventually arrive. Both sports are popular in South Carolina and would be intriguing partners for third-party platforms like DraftKings and FanDuel, should they be allowed to operate in the Palmetto State.
Specific Aspects
In March of last year, Senators Davis and Leber sponsored S 444, which has only now received its first hearing. The South Carolina Sports Wagering Act, as it is known, would include the following:
- The South Carolina Sports Wagering Commission would be created to regulate the industry
- Up to eight licenses would be awarded, and each operator would be required to have licenses in at least five other jurisdictions
- The legal betting age would be 18
- Operators would be allowed to deduct on promotional spending and federal taxes before paying the state, and could carry losses over to subsequent months.
- Sportsbooks would pay a $100,000 application fee and a $1 million license fee
- Sports betting revenues would be taxed at 12.5%
Leaky Borders
Regardless of the state, legislators attempting to bring sports betting to their constituents often cite identical reasons to advocate for it, while opponents do the same to support their arguments against it.
Mobile sports betting has proven to be a financial boon to state economies, via the tax revenue generated from the sportsbooks’ profits. But lawmakers on the other side of the argument will point to increasing gambling addiction rates as a price too costly for the sake of added revenue.
The states and legislators may change, but the pro and con arguments remain the same.
And besides the economic relief it will manifest, another reason to legalize sports betting is the evidence that residents are already betting on sports, whether it be with bordering states that have legalized it or offshore sportsbooks, without the state reaping those financial benefits.
According to data gathered from GeoComply, 12 million attempts to access domestic sportsbooks like DraftKings and FanDuel from users inside South Carolina were blocked over the past year.
