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Bonus TL;DR
- With anti-gambling Gov. Henry McMaster leaving office in January 2027, Republican nominee Alan Wilson expressed openness to online sports betting, while Democratic nominee Jermaine Johnson supports voter-approved expansion.
- A template legislative framework would authorize up to eight online sportsbooks taxed at 12.5%, projecting $40 million in annual state revenue with 5% allocated to problem gambling treatment.
South Carolina still bans sports betting, but a renewed push to legalize online sports wagering is taking shape as Gov. Henry McMaster nears the end of his term and leading 2026 governor candidates stake out their positions.
The debate matters because residents are already betting through mobile apps, fantasy products, prediction markets and offshore sportsbooks, according to the Charleston City Paper, while the state collects none of the tax revenue a regulated market could generate. A 2025 bill backed by Republican Sens. Tom Davis and Matt Leber is now serving as a template for what legalization could look like.
Candidates split on how far legalization should go
McMaster has been a consistent gambling opponent and a likely veto threat, but he is term-limited and leaves office in January. That shift could change the political math for sports betting legislation in Columbia.
Republican gubernatorial nominee Alan Wilson opposes legal casinos in South Carolina but said he is open to online sports betting with safeguards. “(The) internet is everywhere, and obviously, anybody can go online. I don’t want to criminalize conduct that people are doing on their phone,” Wilson said, adding that he wants the state to be “very thoughtful about it.”
Democratic nominee Jermaine Johnson said he would support legalizing and taxing online sports betting if voters approve it in a referendum. He also said he would back brick-and-mortar casinos, pari-mutuel horse race betting and prediction markets if approved by voters and paired with protections. As conversations around modernizing state revenue models expand, lawmakers and industry experts also weigh whether future regulatory frameworks should eventually encompass other digital entertainment channels, such as a fully regulated online casino market.
Johnson said his family’s experience with gambling addiction makes safeguards essential, including prevention programs and treatment resources from the start.
What the South Carolina sports betting bill would do
The 2025 proposal would allow up to eight operators to offer online sportsbooks in the state. Applicants 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 suggest the bill could eventually generate about $40 million annually. Under the proposal, revenue would be split 82% to the General Fund, 10% to local governments for infrastructure, 5% to the Department of Mental Health for problem-gambling treatment and prevention, and 3% for administration.
A new nine-member Sports Wagering Commission would oversee the market.
Leber called the measure “a pretty well-crafted bill” and said it could be improved further by borrowing best practices from other states. He also argued that residents with gambling problems are already finding ways to bet and that South Carolina should not act as a “nanny state.”
Why the issue is back on the agenda
The broader backdrop is the rapid expansion of legal sports wagering since the 2018 U.S. Supreme Court decision that struck down the federal ban outside Nevada. According to the article, 39 states and Washington, D.C. have since legalized and taxed sports betting.
The report also cited a recent New York Federal Reserve analysis concluding that states that have not legalized sports betting still bear the costs of cross-border wagering without capturing the tax revenue. Furthermore, as legislative proposals evolve to address consumer protection and public health concerns, proponents emphasize that incorporating strict responsible gaming mandates from day one remains vital for safeguarding vulnerable players.
What happens next is still unclear. Key open questions include whether lawmakers file a new bill in the next session, whether any legalization plan includes a voter referendum, and whether the 2025 framework advances in both chambers under South Carolina’s next governor.
Source: As reported by Jack O’Toole.
