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South Carolina still bans sports betting, but lawmakers and gubernatorial candidates are openly discussing a regulated online market as illegal and gray-market wagering continues. A proposed bill would tax sportsbooks, create a state commission and direct part of the revenue to problem-gambling treatment.
South Carolina is debating whether to bring sports betting out of the shadows and into a regulated framework. According to reporting by the Charleston City Paper, residents are already using gambling apps, fantasy sports products, prediction markets and overseas sportsbooks even though the state has not legalized or taxed sports wagering.
Proposed bill would legalize online sportsbooks and tax revenue
A 2025 bill backed by Sens. Tom Davis and Matt Leber would allow up to eight companies to operate online sportsbooks in South Carolina. Under the proposal, operators would pay a $100,000 application fee and a $1 million licensing fee, while adjusted gross receipts would be taxed at 12.5%.
State estimates cited in the report say the measure could eventually generate about $40 million a year. The bill would divide gambling revenue with 82% going to the General Fund, 10% to local governments for infrastructure, 5% to the South Carolina Department of Mental Health for problem-gambling treatment and prevention, and 3% for administration.
The legislation would also create a new nine-member Sports Wagering Commission to regulate the market.
Candidates split on scope, but support guardrails
The debate is playing out during the governor’s race. Republican nominee Alan Wilson said he would oppose legalizing casinos, even if voters approved them in a referendum, but said he is open to online sports betting with restrictions.
“The (internet) is everywhere, and obviously, anybody can go online,” Wilson said. “I don’t want to criminalize conduct that people are doing on their phone.”
Democratic nominee Jermaine Johnson said he would support legalizing and taxing online sports betting if voters approved it first. He tied that position to addiction safeguards, saying gambling addiction in his family contributed to years of housing instability during his childhood.
Johnson said any expansion should launch with “strong protections, prevention programs, and treatment resources in place from the very first day.”
Why the South Carolina debate matters
The discussion mirrors a broader national shift since the 2018 U.S. Supreme Court decision that opened the door for state-regulated sports betting. The article says 39 states and Washington, D.C., have since legalized and taxed sports wagering.
The source also cites a New York Federal Reserve report saying states that do not legalize still bear the costs of cross-border betting without collecting tax revenue. For bettors and operators, South Carolina is now confronting the same question many holdout states face: whether existing demand is better handled through prohibition or regulation.
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Source: As reported by Charleston City Paper.
