What’s The Deal with South Carolina Sports Betting?

As The Palmetto State convenes for 2025 legislature meetings, at least one big question looms over the entire proceedings: So, uh, what is the deal with South Carolina sports betting?

Industry experts as well as many inside The Palmetto State itself are expecting yet another push for legalization. Multiple attempts to green light sports betting in South Carolina have failed in the past. But those efforts, while unsuccessful, are also proof of interest.

That intrigue is supposed to increase tenfold now that sports betting in North Carolina will celebrate its one year anniversary this march. With The Tar Heel State now in the fold, South Carolina is surrounded by legal sports betting markets. Though Alabama sports betting is not yet legal, Tennessee, Virginia and Florida all offer some form of sports wagering.

Most do not view state policies through “peer pressure” lenses. But commonality has a way of inciting change for holdouts. This is especially true for sports betting in the United States. It is not just about following a trend. It is, for the most part, about keeping revenue in-state that will otherwise be generated somewhere else.

This is the logic that fuels belief South Carolina sports betting will sit near the top of this year’s legislative agenda. And yet, with sessions already underway, we have yet to hear anything concrete. What does that mean?

Projected South Carolina Sports Betting was Supposed to Invite Legalization Talks

Commissioned estimates for South Carolina sports betting were supposed to be the catalyst for this year’s latest round of discussions. Dorchester County Republican Representative Chris Murphy, who was among those sponsoring South Carolina sports betting bills back in 2023, has basically confirmed as much.

“Studies have shown that there is about $2.5 billion annually that’s being wagered online in South Carolina illegally,” he said, via The Charleston City Paper. “The hope of this legislation would be to eradicate that illegal wagering.”

Illegal sports betting will, of course, never be fully stamped out. People will always use unlicensed bookies and offshore betting sites. If nothing else, these provide avenues for people who do not want the government regulating their gambling with covert alternatives.

Still, Representative Murphy’s overall logic tracks in the aggregate. Legal South Carolina sports betting invites people to place wagers in-state because it is considered safer. As of now, they aren’t just looking at illegal and offshore alternatives. They are traveling to surrounding states, if possible, place their wagers.

“Sports betting is happening in South Carolina,” said former South Carolina House Representative Joe Cunningham, via The Charleston City Paper. “It’s just under the table, unregulated, and overseen by bookies. Our state gets nothing. It’s time to legalize sports betting, bring it to the surface, and use the new tax revenue to cut taxes and invest in our teachers and roads.”

This framing by Cunningham isn’t novel. It was prominently featured during 2023’s attempt to legalize sports wagering. And to some extent, it worked. Tying the benefits of legal sports betting to educational funding increase is a tried and true way of swaying sentiment. While two bills failed in 2023, South Carolina sports betting saw more support than ever.

South Carolina Governor is Still Against the Legalization of Sports Wagering

Of course, growing support for South Carolina sports is different from majority support. On top of that, evolving advocacy means only so much if Governor Henry McMaster remains against it. And apparently, this is still the case.

“The governor has always opposed legalized sports betting and campaigned against it during the 2022 gubernatorial election,” McMaster spokesman Brandon Charochak told The Charleston City Paper earlier this month. “His position remains unchanged.”

McMaster’s opposition does not have to prevent the House of Representatives and Senate from discussing sports betting. However, he does need any initiative into law if it passes through both branches. And beyond that, he has a ton of sway when it comes to the Senate in general. Members of the Senate may not bother to consider a bill if they know McMaster isn’t against it.

Yet, it is important to remember that the Governor is among a list of obstacles. He is not the only one. Many congress members continue to express concern about the ill effects that come with South Carolina sports betting. That same piece from The Charleston City Paper, penned by Jack O’Toole, cited a relatively new study conducted by the University of Southern California and the University of California Los Angeles (UCLA). Their research found the following in states that legalized sports betting:

Bankruptcies rose between 25 percent and 30 percent in the first four years.
Collections actions on unpaid debts rose 8 percent.
Statewide credit scores fell by one full point.

Further research must be done before any takeaways can be treated as the standard. But there is no denying the issues with this data. And it is, as O’Toole reminds us, at the forefront of South Carolina officials’ minds.

Hence why sports betting legalization in South Carolina feels unlikely at this time. The state’s interest may be clear. And North Carolina’s sports betting launch will carry weight. But as of now, with legislative meetings underway, the lack of chatter speaks volumes.

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