What’s The Value of South Carolina Sports Betting?

Good luck to anyone attempting to map out the future of South Carolina sports betting.

The outlook on wagering in The Palmetto State takes up a unique space inside the overall discourse. While sports betting in South Carolina remains illegal, state legislators have broached the topic on numerous occasions. At the same time, overall support for it is murky. Sure, certain policymakers champion it. But there is not a coalition pushing for it that dominates headlines or renders it a constant subject in local and national conversations.

Market size has something to do with it. People are more focused on the futures of sports betting in California, sports betting in Texas and sports betting in Georgia. This is especially true for online sportsbooks in the United States. Top operators have clear financial incentives for advocating on behalf of larger markets without legal sports wagering.

South Carolina does not fall into this bucket. And yet, it is not exactly an afterthought case, either. Many give little consideration to the absence of sports betting in Utah or sports betting in Idaho. The continued lack of South Carolina sports betting legislation is more totable.

In fact, it has become an even bigger talking point since sports betting in North Carolina launched earlier this year. Two of South Carolina’s most direct neighbors, North Carolina and Tennessee, now offer legal online sports betting.

This is so often painted as the impetus for a potential change in South Carolina sports betting laws. And the increase in legalization of sports betting in the United States is definitely a factor. But it is not a more important catalyst than the prospective financial gain. Under the circumstances, the state’s earning potential matters more than what’s happening elsewhere. To that end, we must ask: How much might South Carolina sports betting be worth? And is it a number that’s high enough to incite change?

Can We Ballpark South Carolina Sports Betting Revenue?

To be sure, we are not saying that the increased legalization of sports betting in the United States fails to be a persuasive argument. Thirty-nine states, plus the District of Columbia, have now legalized some form of sports betting. That matters.

However, if South Carolina lawmakers were concerned about keeping pace with the rest of the country, we would not be having this discussion right now. They have so far not been impacted by the normalization of the industry. That is why we prefer to focus on financial potential. In this case, specifically, it holds a ton of weight.

Oftentimes, policymakers seem to think that states without a ton of in-market sports teams (like South Carolina) don’t stand to financially benefit in a meaningful way. But we have evidence from other locations that this isn’t the case. Look no further than sports betting in Kentucky. The Bluegrass State is not teeming with pro sports franchises in their market. And while they have a long history of horse race betting, the legalization of general sports betting has fared quite well.

Incidentally, Kentucky is a nice analog for South Carolina sports betting potential. Their population checks in at 4.5 million people, per StatsAmerica.org. That is noticeably lower than the 5.3 million number for South Carolina. Nevertheless, South Carolina and Kentucky rank 23rd and 26th, respectively, in total population. You can also argue Kentucky offsets the populous difference with the bump it gets from heightened horse-racing interest.

Anyway, Kentucky sports betting is generating an average of $3 million per month in additional tax revenue for 2024. That is the equivalent of $36 million per year. This feels like a good ballpark for South Carolina sports betting, especially given the Kentucky sports betting market isn’t that old. They launched back in September 2023.

South Carolina May Have More Financial Upside Than Many Think

Believe it or not, the Kentucky comparison may actually be too conservative relative to South Carolina’s population. They have about 800,000 additional residents. Even with the prevalence of horse racing in The Bluegrass State, the additional bodies in The Palmetto State could translate to more overall business.

For argument’s sake, let us look at the Kentucky sports betting handle in 2024. Through the first nine months of reports, they have taken in roughly $1.75 billion worth of wagers. Over the course of an entire year, this comes to around $2.3 billion.

If we apply the Kentucky sports betting handle per capita in 2024 to The Palmetto State’s population, it results in an average monthly sports betting handle of around $233 million. That is the equivalent of an annual sports betting handle of $2.8 billion.

Would South Carolina sports betting be guaranteed to hit this benchmark? Of course not. But the point is, they have the population to do so. And they also have the proximity to states with plenty of sports teams—Georgia, North Carolina, Tennessee—to assure longstanding interest in the sports calendar itself.

As such, South Carolina policymakers invariably have to take notice of the market potential. Anytime something’s projected to be worth multiple billions of dollars in action, you have to weigh the merits of regulating it and taxing it.

Whether this consideration takes center stage in 2025 is anyone’s guess. Truth be told, it probably will not. But the sports betting industry in the United States continues to mature, our guess is South Carolina will eventually do what so many states have already done.

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