South Carolina lawmakers will become the first in the country to debate legalizing sports betting in 2026. 

A hearing has been scheduled for February 18 in the Senate Labor & Commerce Subcommittee to discuss S444. 

The legislation was first introduced last year, but did not receive any attention until now. The bill proposes legalizing online sports betting and establishes the South Carolina Sports Wagering Commission to regulate the market. 

The newly created gambling regulator would be a state public body with nine members appointed by the governor and legislative leaders.

Key Terms of Legislation

The terms of the bill include:

• The commission will grant eight operators licenses
• Licensees will pay the state 12.5% of revenue in taxes
• License applications will cost $100,000
• Successful applicants will be charged $1 million for a license
• Applicants must be active in at least five other states already
• Wagering would be allowed on pro-sports, college sports, and esports 

The push for an expansion of gambling options in South Carolina has intensified in recent years, particularly following North Carolina’s legalization of sports betting in 2024. 

Rep. Todd Rutherford said he believes it is ridiculous that the state has not yet approved online sports wagering. 

Speaking last year, he commented, “The fact that South Carolina has some of the best sports teams in the entire country, and we’re unable to place bets on our phone is absolutely ridiculous”.

Gambling Opponents Block Casino Plans

The state’s efforts to legalize commercial casinos suffered a setback last week when House Majority Leader Davey Hiott recommitted a bill to the House Ways and Means Committee. 

Lawmakers had agreed on how tax revenue would be shared, but opponents of gambling continue to fight against casinos and sports betting. 

Gov. Henry McMaster has publicly voiced his opposition, stating, “Gambling is bad for our culture. It’s not a part of our heritage, and there are better ways to make money to give jobs to generate tax money”.

State Missing Out On Revenue, Say Proponents

On the other side, advocates for legalization say residents are already crossing the border to North Carolina to place wagers. As a result, South Carolina is missing out on tax revenue. 

North Carolina collected $116 million in tax revenue in FY2025 and is set to surpass that this year. The new financial year started in July, and in the six months up to December, it collected over $71 million. In November, a record $800 million in handle was wagered, resulting in a record $16 million in taxes. 

Elsewhere, Alaska, Nebraska, and Mississippi are among several states considering legislation to legalize online sports betting. In South Dakota, lawmakers have proposed putting it to a vote among citizens. 

If the same were done in South Carolina, the Sports Betting Alliance (SBA) says it would pass with no problem. The group representing five of the country’s biggest sportsbooks says at least 70% of residents support legalization. The same level of support may not be present in the chambers, however.