South Carolina Sports Wagering Act (Bill 444) Targets Legal Betting in 2025-2026

Bill Details and Structure

The legislation adds Chapter 55 to Title 39 of the state code, setting rules for operations and oversight. It establishes the South Carolina Sports Wagering Commission, a nine-member body appointed by the governor, Senate president, and House speaker. This group would handle licensing, regulation, and administrative costs.

The bill caps licenses at eight for sports betting operators. Each applicant faces a $100,000 application fee and a $1 million licensing fee, with licenses lasting five years. Operators must already run in at least five regulated U.S. markets and submit reference letters from those regulators.

A 12.5% privilege tax applies to adjusted gross betting revenue, total wagers minus winnings, promo costs, federal taxes, voided bets, and bad debts. Revenue from this tax would fund state tax relief, addiction treatment, public universities, local governments, and infrastructure. Murphy sees it shifting bettors from illegal to legal channels.

Other rules shape the framework. Operators can’t take bets from minors, offer credit, or accept wagers on non-sports or youth sports events unless approved. Bettors must be 18 or older and in-state to play. The commission sets additional regulations, enforces compliance, and can issue fines or revoke licenses.

A voluntary self-exclusion program lets bettors opt out. The bill also shields legal sports betting from certain gambling laws under Section 16-19-130, but it doesn’t require official league data for settling bets.

Legislative Push and Context

Davis and Murphy drive this effort with parallel bills in the Senate and House. Murphy’s version sits with the House Ways and Means Committee. He’s vocal about its potential, noting South Carolina’s illegal betting market, estimated at $2.5 billion yearly by some studies.

Neighboring North Carolina, legal since March 2024, pulled in $545.6 million in gross revenue and $98.6 million in taxes through November, per state data. Geolocation stats show South Carolinians crossing borders to bet there, draining potential state revenue.

This isn’t the first swing at legalization. A 2023 bill, House Bill 3749, pitched up to eight mobile betting apps and a 10% tax rate but stalled in the House Ways and Means Committee.

That version tied licenses to PGA Tour stops and NASCAR’s Darlington Raceway, a twist absent in Bill 444. Past efforts—like 2022’s HB 5277 and 2021’s HB 3395, also died in committee, facing constitutional debates and conservative pushback. Bill 444 sidesteps a constitutional amendment, unlike broader proposals such as 2025’s HB 3353, which adds horse racing and casinos but needs voter approval.

Opposition looms large. Governor Henry McMaster has long resisted casino and sports gambling, arguing negative impacts outweigh financial gains. His stance, backed by figures like House Majority Leader David Hiott, slowed prior bills.

Meanwhile, supporters like Murphy point to North Carolina’s haul, $4.8 billion wagered in nine months, as proof of lost cash. The commission’s nine members would include state residents with no felony records or direct betting industry ties, aiming for impartial oversight if it passes.

Key Provisions and Outlook

The South Carolina Sports Wagering Commission anchors Bill 444. Appointed by top state officials, it would hire an executive director, set fees, and cover operating costs from tax revenue. Most of the 12.5% privilege tax heads to the general fund, with chunks for local governments, mental health (via the Department of Mental Health), and commission expenses.

Operators must prove financial stability, pass background checks, and name a South Carolina resident as a local agent. Temporary licenses are an option for those active in five other states.

Eligibility rules are strict. Commission members, staff, coaches, athletes, refs, and anyone with inside info can’t bet or hold licenses. Minors and out-of-state bettors are barred too.

Operators must verify identities, block restricted players, and report to the commission. Enforcement includes penalties, fines, suspensions, or license losses, for violations. The bill encourages ties with sports bodies to monitor betting integrity, though it skips mandatory league data use, unlike some states. Confidentiality protects applicant data submitted to the commission.

The bill’s path isn’t clear yet. Murphy’s optimistic, vowing to refile if it flops this session, which ends April 27, 2025. North Carolina’s success, $14 million in tax revenue for November 2024 alone, adds pressure, but McMaster’s veto power and conservative leanings could stall it.

The 2023 failure suggests a tough road through committees, especially with no crossover deadline met then. Bill 444’s narrower focus, sports betting only, no casinos or horse racing, might ease some resistance, but it still needs House and Senate votes. If it clears, implementation could stretch to late 2025 or 2026, aligning with past rollout timelines elsewhere.