South Carolina lawmakers are weighing a proposal to legalize online sports betting, setting up debate over regulation, revenue, and social impact. A legislative subcommittee spent nearly two hours reviewing the bill before opting to continue discussions, according to WACH.
Key Takeaways
- South Carolina lawmakers are debating legalizing online sports betting despite opposition from Gov. Henry McMaster.
- Supporters said betting activity is already occurring without state oversight or tax revenue collection.
- Opponents warned that legalization could increase addiction and financial harm, particularly among young men.
Trevor Hayes of Caesars Entertainment told lawmakers that betting activity is already taking place within state borders.
He said data from Caesars indicated legal operators began accepting bets from South Carolina residents in late 2024, but South Carolina is not receiving the tax revenue. Hayes added that Kalshi processed more than $10 billion in handle in a single month, highlighting the scale of activity operating outside state regulation.
Sen. Josh Kimbrell, a Republican from Spartanburg County, said approximately 415,000 South Carolinians hold betting accounts and travel to neighboring North Carolina or Tennessee to place wagers. He argued a regulated market would eliminate illegal activity and provide oversight while stressing that he does not support broader gambling expansion, such as introducing casinos in the state.
Gov. Henry McMaster previously warned that expanded gambling could lead to further growth beyond sports betting. His office reiterated that his position remains unchanged and that alternative revenue options should be explored.
Opponents, including members of Palmetto Family Alliance, told lawmakers that men ages 18-29 are particularly vulnerable to gambling-related harms, including bankruptcy and poor credit outcomes. This may ultimately influence the bill's movement, with lawmakers hearing the testimony but not voting on the initiative.
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Other jurisdictions advance proposals
Hawaii lawmakers have also moved forward with sports betting legislation. The Hawaii House Economic Development and Technology Committee advanced HB 2570 by a 5-3 vote despite significant opposition from the attorney general's office, Honolulu police, and the Department of Commerce and Consumer Affairs.
The Hawaii bill would authorize at least six online sportsbooks at a 15% tax rate. Its listed effective date of July 1, 3000, allows additional time for negotiations. The proposal must now clear two more House committees before reaching the floor.
Last year, similar legislation stalled in conference committee after disagreements over tax rates and licensing fees, though Gov. Josh Green indicated he would have signed the measure.
Elsewhere, Wisconsin lawmakers have continued discussions on whether to allow tribes to offer online sports betting. Indiana advanced a bill banning sweepstakes casinos and granting the Indiana Gaming Commission expanded enforcement authority.
Maryland lawmakers reviewed measures targeting problem gambling and reintroduced legislation to legalize online casinos. Washington senators approved a bill permitting tribal casinos to accept wagers on in-state college teams, excluding player prop bets.
