South Carolina lawmakers have yet to decide on betting legalization bill

• A bill proposes the legalization of sports betting in South Carolina and sets policies for licensing, taxing and regulation
• The proposal is yet to gain traction after it was introduced last year
• Sen. Josh Kimbrell explained in a recent interview that residents are visiting North Carolina to bet on sports, resulting in missed tax revenue for South Carolina

With less than a dozen U.S. states not offering legal sports betting, the activity is available in 40 states.

In North Carolina, the Eastern Band of Cherokee Indians and the Catawba Indian Nation hold licenses to offer sports betting. However, in nearby South Carolina, the activity is yet to be legalized.

A newly introduced bill seeks to change this, proposing the legalization of sports wagering in South Carolina.

The bill proposes eight operators, five-year licenses and 12.5% tax on betting

Senate Bill 444 (S0444) was introduced in March last year and is sponsored by Senators Tom Davis and Matthew W. "Matt" Leber.

Ultimately, the proposal seeks to legalize sports wagering, establish a regulatory framework for the activity and distribute taxes collected from betting.

Referenced as the "South Carolina Sports Wagering Act," the bill proposes the creation of the South Carolina Sports Wagering Commission, tasked with regulating the activity.

Under S0444, sports betting would be taxed at 12.5% on the adjusted gross sports wagering receipts.

The number of licensed operators would be restricted to eight.

Each licensee would pay an application fee of $100,000 and a license fee of $1m.

In cases where the operator's license application is denied, they would be refunded the $1m license fee, but the application fee is nonrefundable, S0444 specifies.

"A license issued by the commission authorizes the licensee to offer interactive sports wagering in this State and is valid for five years," the bill reads.

To apply for a license renewal, operators would need to once again pay an application fee of $100,000 and a license fee of $1m.

In case a betting operator's license isn't renewed, they would receive the $1m licensee fee, but the application fee is nonrefundable.

Besides taxes and licensing, the proposal establishes policies for self-exclusion from betting and outlines rules licensees need to meet to ensure that such people do not access their services.

South Carolina is missing tax revenue, with bettors going to North Carolina

Sen. Josh Kimbrell spoke about the proposed legislation, a report released by the local media outlet, WYFF4, reveals.

He acknowledged that many South Carolina residents visit North Carolina to place sports bets.

"Last year, North Carolina made $129m off of these online sports bets. DraftKings, that kind of thing. While South Carolinians, hundreds of thousands of them, are going across the North Carolina to place the same bet," Kimbrell said.

The Senator estimated that South Carolina is losing between $50m and $60m by not having legal sports betting.

That money would otherwise benefit the state's general fund, providing an extra stream of tax revenue, Kimbrell added.

He further said: "There's a whole range of things that right now, those South Carolinians are still using these accounts. They're just going to North Carolina and doing it; North Carolina is collecting the revenue."

If South Carolina legalizes sports betting, it will join the majority of U.S. states that already offer the activity.

Besides South Carolina, ten more states haven't legalized wagering on sports.

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