Expansive South Carolina Sports Betting Bill Introduced

• A bill to legalize retail and online sports betting in South Carolina was introduced in the House on Thursday
• The bill has been referred to the Judiciary Committee
• The bill calls for a 10% sports betting tax

South Carolina sports betting is again on the table, as a state legislator yesterday introduced a bill in the House to legalize online and retail sports betting in the Palmetto State.

South Carolina HB 5277 calls for the legalization of online and retail sports betting in the state. Introduced by Rep. William Herbkersman (R) and co-sponsored by Rep. Todd Rutherford (D). South Carolina’s legislative session will end on June 15, so there is plenty of time for an agreement to come on the piece of legislation.

Eight to Twelve Online Operators

The bill will allow for eight to 12 online sports betting platform operators in the state, who must partner with a state entity to operate. Professional sports franchises, facilities that host PGA Tour events, and promoters of a national association for stock car auto racing national touring race are eligible to apply for a sports betting license and partner with an operator.

Organizations that are awarded a sports betting license will be required to pay a $500,000 license fee and a non-refundable application fee. The bill sets the sports betting tax rate at 10% for adjusted gross sports betting revenues, which is minus all free play offers or promotional credits offered to customers. The 10% rate is on the lower side of the national average for sports betting tax rates.

The bill would allow for collegiate sports betting.

One of the more interesting details of the bill is a specific mention of Cryptocurrency and digital currency as a funding mechanism. Sports bettors have been intrigued with the idea of Crypto or digital currency as a funding mechanism for years, but operators have been wary in certain circumstances to consider the option.

The bill was referred to the House Committee on Judiciary.

South Carolina lawmakers have introduced a bill (H5277) that would legalize sports betting. It includes:

• 8-12 mobile operators, including participation by pro teams
• Cryptocurrency funding
• 10% tax rate
• $500k application fee

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— John Nucci (@JNucci23) April 22, 2022

Another Go For South Carolina Sports Betting

HB 5277 is the second proposed sports betting bill in the state in the last three years. Rep. Rutherford co-sponsored and introduced HB 3395 in 2020, which called for the legalization of sports betting in the state through a constitutional amendment. The bill was short on details, not specifying if online sports betting would be legal or just retail betting, and it did not set a tax rate. It did earmark sports betting tax revenues for highway, road, and bridge maintenance.

The bill never came up for a vote and has remained in the House Committee on Judiciary since early 2021.

According to WLTX in South Carolina, Rutherford estimated HB 3395 could bring in close to $40 million a year in revenue for the state.