South Carolina lawmakers’ proposed online sports-betting framework could eventually generate about $40 million a year, with 5% of revenue earmarked for problem-gambling treatment and prevention. Sports betting remains illegal in the state, so the plan would need to become law before operators could launch under its rules.
The proposal, sponsored in 2025 by Sens. Tom Davis and Matt Leber, would allow as many as eight companies to run online sportsbooks. Its details were reported by the Charleston City Paper and summarized by GamingToday.
How the proposed market would work
Each operator would pay a $100,000 application fee and a $1 million licensing fee. The bill would tax adjusted gross receipts at 12.5%, with state estimates suggesting the market could eventually bring in about $40 million annually.
The proposed revenue split assigns 82% to the state General Fund and 10% to local governments for infrastructure. The South Carolina Department of Mental Health would receive 5% for problem-gambling treatment and prevention, while 3% would cover administration.
A new nine-member Sports Wagering Commission would oversee the market. The dedicated allocation would make treatment and prevention part of the proposal’s funding structure from the outset, rather than leaving those programs to compete for the remaining revenue.
That focus connects to a broader question about how states incorporate gambling disorder into public services. Illinois’ recognition of gambling disorder as a behavioral health condition offers another example of how the issue can be handled within a state system.
A proposal amid a wider policy debate
The 2018 U.S. Supreme Court decision that opened the door to state-regulated sports betting has since been followed by legalization and taxation in 39 states and Washington, D.C., according to the reporting. South Carolina remains outside that group, although residents are described as using gambling apps, fantasy sports products, prediction markets and offshore sportsbooks.
Several gambling-related bills have appeared in recent South Carolina legislative sessions. A pari-mutuel horse-wagering bill passed the House in 2023 but did not pass the Senate; the Davis-Leber measure is a more comprehensive proposal focused on online sportsbooks.
The Charleston City Paper also cited a New York Federal Reserve report saying states that have not legalized sports betting can bear costs from cross-border wagering without collecting tax revenue. The policy debate therefore involves both potential public revenue and the risks associated with gambling, including the need for prevention and treatment.
North Carolina’s sports-betting expansion provides regional context for South Carolina’s debate over legal wagering and treatment resources. Sports betting in North Carolina has grown under a state-regulated model, while South Carolina’s proposed approach would set its own licensing, tax and funding terms.
Governor candidates differ on approval and safeguards
Republican nominee Alan Wilson has opposed legalizing casinos, even if voters approved them, but has said he is open to online sports betting with restrictions. His position reflects the view that residents can already place wagers online and that regulation should address that activity.
Democratic nominee Jermaine Johnson supports legalizing and taxing online sports betting only if voters approve it first. He has linked his emphasis on safeguards to gambling addiction in his family and said protections, prevention programs and treatment resources should be in place from the start.
The candidates’ positions leave voter approval and the scope of consumer protections as central questions in any push to legalize. The Davis-Leber proposal remains a plan, not an operating framework; South Carolina’s current ban remains in place unless lawmakers enact a change.
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