South Carolina has begun to consider the possibility of establishing retail casinos, with the proposal having the backing of a large and bipartisan group of House legislators. South Carolina is currently one of the least gambling-friendly states in the US. However, if passed, the proposal would pave the way for a $1 billion casino project in Orangeburg County, with the possibility for additional casinos in Marlboro and Dillon counties. The bill will also establish a South Carolina Gaming Commission to oversee casino operations.
The I-95 Economic and Education Stimulus Act (HB 4176) would authorize casino sites in Orangeburg, Dillon, and Marlboro counties. As the name suggests, all three potential locations lie along the I-95 corridor. Dillon and Marlboro counties share a border with North Carolina, making them prime locations for cross-border traffic. Meanwhile, the Orangeburg resort would be conveniently located at approximately equal distances from the urban centers of Charleston, Augusta, and Columbia.
Plans for that $1 billion development are already on the table. The proposed casino would be built on the former Santee Outlet Mall site, which has been vacant for a decade. The Santee Development Corporation, the project’s developer, has confirmed that the funding will come entirely from private sources.
The project’s economic effect is the main catalyst for HB 4176. Primary sponsor Rep. Christopher Murphy (R) has gained sizeable support among his colleagues and the bill and has 12 co-sponsors:
- Rep. Gary Brewer (R)
- Rep. Gil Gatch (R)
- Rep. Leonidas Stavrinakis (D)
- Rep. Elizabeth Wetmore (D)
- Rep. Todd Rutherford (D)
- Rep. William Herbkersman (R)
- Rep. Weston Newton (R)
- Rep. Seth Rose (D)
- Rep. Robby Robbins (R)
- Rep. Beth Bernstein (D)
- Rep. Gilda Cobb-Hunter (D)
- Rep. Justin Bamberg (D)
The bill’s first stop is the Committee on Ways and Means.
Casinos would boost local economy
Rep. Murphy told the WIS 10 news outlet that HB 4176 would be a “game changer” for Orangeburg County. The county is classified as Tier Four, meaning it lacks economic opportunities.
You would draw a lot of people that right now, that don’t have economic opportunities, don’t have job opportunities in their own counties, but it would be a central point for them.
[I] have all the confidence in the world that this would be a game changer for this area.
According to the Santee Development Corporation, the proposed casino will generate nearly 5,000 jobs and $75 million in tax revenue annually. The developer expects about four million visitors annually, many from out of state.
Building in-state casinos would be welcome news for many South Carolinians who travel to other states to gamble. The Palmetto State has limited gaming options, including the state lottery and boat casinos that must sail to international waters. Sweepstakes casinos have also recently gained popularity. Online sports betting could also become an option if lawmakers approve a separate bill known as the Sports Wagering Act. Rep. Murphy also sponsors that proposal.
The bill establishes a regulator and licensing criteria
In addition to authorizing three casinos, HB 4176 creates the South Carolina Gaming Commission, which will oversee licensing and regulatory enforcement. The regulator would award casino licenses, which would cost a $500,000 nonrefundable application fee and a $2 million licensing fee (refundable if denied). The initial license term is 15 years, with renewals every five years. The renewal fees are the same as the application fees.
To qualify for a license, applicants must provide:
- A development agreement with the county
- Proof of ownership or control of the casino site
- An economic impact study proving at least $200 million in investment
- Background checks for owners and key personnel
- Proof of financial stability and at least 10 years of gaming industry experience
Casinos would pay a 15% gross gaming revenue tax, with proceeds directed to South Carolina’s general fund.
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