South Carolina is attempting to give legal sports betting another try.
Lawmakers in the Palmetto State have started to consider House Bill 3749 — a piece of legislation that would legalize online sports betting for a jurisdiction of 5.3 million people.
Last month, HB 3749 — which was introduced on January 19 — was discussed by South Carolina’s House Ways and Means Revenue Policy Subcommittee. The bill was sponsored by Rep. Chris Murphy and will now go to the full House Ways and Means Committee for further consideration.
What does the bill entail?
HB 3749 permits sports fans in South Carolina that are 18 years or older to wager, unlike the majority of jurisdictions with sports betting in the U.S. that require bettors to be at least 21.
The bill would also authorize up to eight sports betting operators in South Carolina. Sportsbooks looking to gain market access in the state will be required to pay a $50,000 fee to apply for a license. If an operator’s application is denied, the fee will be refunded. On the other hand, sportsbooks that are approved for licenses will be required to pay an additional $450,000 fee.
Outside of online betting sites, the licenses will be available for two sports entities, which include NASCAR and the PGA Tour. HB 3749 also demands that prospective operators already have market access to at least five other states in the United States.
If enacted, HB 3749 will require those licensed operators to pay a 10% tax from their adjusted gross incomes. The revenue from sports betting will be distributed in three ways: 80% will be allocated toward South Carolina’s General Fund, another 15% will go to local governments, and the final 5% will go toward responsible gaming oversight.
South Carolina is projected to generate roughly $23 million in revenue annually from sports betting, according to Murphy.
Past shortcomings
South Carolina considering an online sports betting bill comes after previous failed attempts to legalize wagering. To date, a bill regarding sports betting has never reached either of South Carolina’s legislative chambers for a vote despite numerous efforts over the last few years.
In 2022, House Bill 5277 — which proposed to legalize both online and retail wagering in South Carolina — was introduced but the piece of legislation failed to advance after lawmakers ran out of time to publicly discuss the bill before the end of a two-year legislative session. HB 5277 would have permitted between eight to 12 operators that would have been taxed at a 10% rate.
Another sports betting bill — House Bill 3395 — was introduced in 2021. The bill, which is co-sponsored by Rep. Todd Rutherford and Rep. Lucas Atkinson, proposes to legalize sports betting in South Carolina through a constitutional amendment. HB 3395, which has yet to be considered for a vote, currently resides in South Carolina’s House Committee on Judiciary.
Follow the neighbor
Sports fans in South Carolina are eager for wagering as neighboring states seek to take advantage of the additional revenue stream. Last month, North Carolina’s House of Representatives voted 66-45 in favor of House Bill 347, which would legalize online wagering.
The bill now heads to the state’s Senate for a vote, which is expected to be favorable. In 2021, North Carolina’s Senate passed a sports betting bill but the legislation failed in the House.
Legal sports betting in South Carolina stands to be a lucrative venture due to high demand but it will also help curtail illegal gambling that has been rampant across the state.
“Currently, in South Carolina, our studies have shown that about $2.5 billion annually is being wagered online illegally,” said Rep. Murphy during a subcommittee discussion of HB 3749. “The hope of this legislation [HB 3749] is to eradicate that illegal wagering.”
