Could North Carolina Nudge South Carolina Sports Betting Toward Legalization?

There will soon be legal sports betting in North Carolina. Could that result in South Carolina sports betting getting the green light as well?

Optimists think it just might.

It sounds like an oversimplification, but that's how this issue often works. When new states legalize sports betting, their neighbors feel the pressure to follow suit. That pressure comes from a mix of sources. The voting population tends to become more vocal about the issue. Officials, meanwhile, get a bird's eye view of how much potential sports betting tax revenue is lost to residents leaving the state to submit wagers where it's legal. Lawmakers also see how successful sports betting can be in general. And once the first few months or the initial year's worth of revenue reports come out, you're liable to see an uptick in discussion.

Consider how legal sports betting came to New York. While it was always considered a formality, The Empire State put up more resistance than most for a variety of reasons. Slowly but surely, though, almost every state around joined the legal sports betting ranks: New Jersey, Pennsylvania, Delaware, Virginia, West Virginia, even Rhode Island and New Hampshire.

Ask just anyone inside the New York market, and they'll tell you this was absolutely a factor that helped drive the state toward the legalization of gambling. Could it be the same story for sports betting in South Carolina?

Where Does South Carolina Sports Betting Currently Stand?

To answer this question bluntly, South Carolina sports betting basically has no standing. It has been proposed on a number of occasions—just about annually, in fact. Each time, however, it faces an ultimately damning lack of support.

That was once again the case this year. House Bill 3749 was introduced during the 2023 legislative meetings and laid out a ton of specifics. Under the terms, South Carolina would have legalized both online sports betting and in-person wagering. Up to eight online sports betting licenses would have been handed out, and the state even negotiated nuanced details like tax rates (10 percent across the board), licensing fees for operators ($500,000 total) and how sports betting revenue would be dispersed (mainly towards a general fund, with 5 percent dedicated to anti-gambling programs).

As we know now, HB 3749 failed to make it out of the initial legislative process. But the level of detail in the proposal suggests that South Carolina has given serious consideration to the matter.

The same can be said of the frequency with which the state has discussed legal gambling. Sports betting bills in South Carolina have now been introduced in 2019, 2021, 2022 and 2023. States won't re-introduce measures that frequently unless there's real interest in taking the next step.

To that end, many believe South Carolina is on the verge of a sports betting breakthrough. Discussions seem to make progress with each passing year. The state may just need a little nudge. And perhaps North Carolina can provide it.

Will South Carolina be Influenced by North Carolina at All?

North Carolina Governor Roy Cooper has signed a bill that officially legalizes sports betting. According to an official release, the launch could come as soon as January 2024. You can see the full details below:

"The law calls for the North Carolina Lottery Commission to oversee online sports betting, statewide retail sports betting off Indian lands, and parimutuel wagering on horse racing. This includes North Carolina betting apps. The Commission has to build its staff and name a director to manage sports betting in the state. 'This commission and the staff have been tasked with the enormous responsibility of licensing and regulating the newly enacted wagering activities while at the same time maintaining the quality work and highest standards of integrity with the lottery,' North Carolina State Lottery Commission Chair Ripley Rand said in statement.'"

Many might scoff at how this impacts South Carolina. And yet, the state has never really dealt with this level of competition. Georgia, the state just below South Carolina, has yet to legalize sports betting. Florida repealed sports betting in 2021. Alabama, another neighboring state, is a long shot to legalize sports gambling anytime soon.

Tennessee, which is located on the left border of South Carolina, has legal sports betting. But the addition of North Carolina will have more of an impact on South Carolina. Not only is North Carolina directly above it and closer to more South Carolina residents, but the two states essentially share a bunch of rooting interests. South Carolina doesn't have any pro sports teams in their market. People are more likely to follow teams and leagues in North Carolina or Georgia. The pull to bet on these organizations and events will be stronger than ever.

Evidence Mounting that South Carolina Sports Betting has Voter Approval

If we're being honest, the legalization of North Carolina sports betting will not immediately sway South Carolina in a different direction. If North Carolina doesn't debut gambling until the start of 2024, it'll be six months to a year before anyone has a strong hold of how much steady money they're making over a longer haul.

Interest from the voting population is the more powerful form of persuasion. And, well, South Carolinians may be ready to voice the necessary support.

Residents were heavily in favor of a horse racing betting bill proposed earlier this year. Mobile wagering licenses were also added to HB 3749 after geotracking data showed how many South Carolinians were attempting to access some of the best online sports betting sites in the United States.

Is this enough to predict that South Carolina will join their neighbor, North Carolina, and approve sports gambling at the next round of legislative meetings? Hardly. South Carolina Governor Henry McMaster remains a staunch opponent of sports betting, and he was recently re-elected.

The brutal truth: South Carolina sports betting could still be years away. It could also be right around the corner. At this stage, there's no telling what'll take to change the state's tune. But on the bright side, it certainly doesn't hurt that North Carolina is making the transition. If anything, it will increase the urgency among South Carolina supporters and, perhaps, open the minds of those currently against it—even if only slightly.

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