SC Lawmakers Push for Online Sports Betting Legalization

Key Takeaways:

• Senator Tom Davis introduced a bill to legalize online-only sports betting in South Carolina
• The proposed legislation allows for up to eight operators and sets a 12.5% tax rate
• Geolocation data shows high demand for sports betting among South Carolina residents

South Carolina's legislative landscape is buzzing with renewed interest in online sports betting. Senator Tom Davis (R-46) has introduced Senate Bill 444, mirroring a House bill from late 2024, both aiming to establish a regulated online sports betting market in the Palmetto State.

The proposed legislation would create a framework for up to eight online sportsbook operators to enter the South Carolina market. These operators would need to be established in at least five other states to qualify for licensing. The bill sets an application fee of $100,000 and a license fee of $1 million for successful applicants.

One notable aspect of the bill is the proposed tax rate of 12.5% on adjusted sports betting gaming revenues. This rate aligns with competitive markets in other states and allows operators to deduct promotional spending from their gross gaming revenues.

The bill also outlines the distribution of tax revenues, with the majority (82%) allocated to the state's general fund. The remaining funds would be distributed to local governments, problem gambling treatment services, and the administrative costs of the proposed South Carolina Sports Wagering Commission.

Interestingly, the legislation sets the minimum age for sports betting at 18, which could become a point of discussion as the bill progresses through committees. Most states require bettors to be at least 21 years old.

GeoComply, a leading geolocation service provider, reported significant interest in sports betting among South Carolina residents. In December, the company identified over 10,000 registered sports betting accounts in the state, despite all betting activity being blocked. This data suggests a strong potential market for regulated sports betting in South Carolina.

As the bills make their way through the legislative process, stakeholders in the online gambling industry will be watching closely. The potential legalization of online sports betting in South Carolina could open up new opportunities for operators and provide a regulated environment for bettors in the state.

While the path to legalization may still face hurdles, the introduction of these bills signals a growing recognition of the demand for legal online sports betting options in South Carolina. As more states embrace regulated sports betting markets, the pressure on holdout states to follow suit continues to mount.