Proponents introduced new legislative bill in South Carolina a month after Texas lawmakers tried to legalize sports gambling, which would legalize sports betting in the Palmetto State.
Senate Bill 444 (SB 444), introduced by Sen. Thomas Davis, legalizes and regulates sports wagering under the oversight of a newly created South Carolina Sports Wagering Commission.
SB 444 provides for a nine-member commission to regulate the state's sports betting businesses. The governor, senate president, and house speaker would appoint the members. The commission is authorized to exercise jurisdiction over licensing administration, fee collections, and handling of operational expenses regarding sports betting.
The bill allows for up to eight sportsbooks in South Carolina. Each prospective book would pay a $100,000 application fee and, upon approval, a $1 million license fee. Licenses granted under SB 444 expire after five years.
Applicants must demonstrate active operations in at least five U.S.-regulated markets to be eligible. They also need to provide letters of reference from regulators to determine their appropriateness.
The Senate bill is not the only pending legislation. Supporters filed another equal measure, House Bill 3625 (HB 3625), in Dec. 2024 and the legislature's House Ways and Means Committee is considering it.
Rep. Chris Murphy sponsored HB 3625 along with more than eight House members as cosponsors. It's also quite similar to SB 444 in the way it regulates, with the same licensing fee, tax rates, and license term requirements. It proposes a 12.5% tax on adjusted gross revenue, a $1 million licensing fee, and a $100,000 application fee, with the licenses good for five years, as well.
Details still to be addressed
While SB 444 sets forth a wide-ranging regulatory structure, it doesn't mandate official league data for sports events or provide for provisions related to daily fantasy sports, suggesting the bill targets conventional sports betting specifically and not the broader online gaming market.
One interesting legislative aspect is its taxation component. The bill subjects adjusted gross sports betting revenue to a 12.5% tax. Of the total tax the state collects, 82% would go to the South Carolina Department of Revenue and then be credited to the state's General Fund.
The state would distribute funds to local authorities on a per-capita basis to finance public works projects such as road construction, mass transit, and government buildings. The rest of the tax revenues would cover administrative and operating expenses associated with the commission and market regulation.
So far, SB 444 and HB 3625 have yet to reach a vote. Each respective chamber must still consider its bill before advancing in the legislative process.
