South Carolina is among the few American states where sports betting is still illegal. Presently, there are no lawful retail or mobile sports betting platforms within the state. However, some bettors have discovered ways around this restriction either by utilizing apps that simulate their presence in states which offer legal betting or, at a riskier extreme, using services provided by unregulated operators.
In a place like South Carolina, renowned for its vibrant equine industry, it is anticipated that regulated betting would introduce benefits such as increased tax income, a factor that has enticed some lawmakers to support the legalization of the practice. House Bill 3514 (HB 3514), a proposed act dubbed the Equine Advancement Act, surgically targets this issue, urging the establishment of an advance-deposit wagering system within the Palmetto State. Under this framework, bettors can preload funds onto their accounts before they place their bets on sports events.
Launched in January of the current year, HB 3514 has gained some attention this spring. Upon successfully clearing the House Judiciary Committee, the bill is expected to progress to the South Carolina Senate, where it will be presented in January next year. As the state prepares for the Fall Steeplechase in Aiken, staged on November 18, 2023, stakeholders have pointed out the significance of progressing with plans to legalize sports betting, and the potential advantages this initiative could bring to South Carolina.
South Carolina Forgoes Tax Revenue from Sports Betting
Frank Mullins, President of the Aiken Steeplechase Association, recently spoke to WRDW/WAGT reporters about the hurdles the equine industry currently grapples with. He underlined that the cost of maintaining the industry is extremely high. He said, “Merely to paint the fence or cut the grass, even dragging the track and applying the fertilizer, all of this represents a significant operational effort, and it is very maintenance-intensive,” he divulged.
Reviewing the current state of sports betting in South Carolina, he underscored that betting is occurring, even without legalized platforms. Mullins also cautioned about the considerable amounts of money being bet on sports through online channels. However, because sports betting is not regulated, the state misses out on potential revenue from this activity.
“There is a great amount of money being wagered in South Carolina, yet we do not regulate it and consequently do not take a cut from it.”
Frank Mullins, President of the Aiken Steeplechase Association
Beyond creating an advance-deposit wagering system, HB 3514 also suggests setting up an Equine Industry Development Fund. As the name implies, the Fund aims to render much-needed assistance to horse racing tracks, like the notable Aiken Training Track.
In relation to this, Bill Gutfarb, President of Aiken Training Track, expressed his belief that the proposed legislation would have a positive impact on the state’s equine industry. He asserted that the proposal could aid the industry’s expansion by attracting more horses and trainers to the region. Lastly, Gutfarb emphasized the crucial role of engaging with lawmakers and rallying behind this change.
