Stephen Shapiro of the University of South Carolina Department of Sport and Entertainment Management is predicting South Carolina legislators will feel pressure from gamblers to legalize sports betting in the years ahead.

“The success in tax revenue generated in North Carolina will be appealing,” Shapiro said in an interview on Aug. 19. “I think we’re likely to see more of those kinds of [sports betting] bills, and there’s a good chance it will be legalized in the next few years.”

Shapiro has secured more than $497,000 in grant funding from national and international organizations such as the Charlotte Hornets, FC Cincinnati, International Cricket Council, Norfolk Tourism Research Foundation, Virginia Tourism Corporation, and the National Kidney Foundation of Florida.

South Carolina lawmakers will push for legalized online sports betting in January 2025

Despite two recent legislative failures, South Carolinians will see a renewed major push for legalized online sports betting in January when the General Assembly reconvenes.

Since the U.S. Supreme Court struck down the federal law prohibiting states from legalizing sports wagering in 2018, 38 states and Washington D.C. have legalized the practice in some form.

“Once more states began legalizing sport gambling,” Stephen Shapiro says, “we shifted our research towards this activity: How is sport gambling going to affect consumption of sport? Will there be changes? What type of person decides to gamble or play fantasy sport, and will that impact their fandom?”

Ahead of the NCAA’s March Madness, North Carolina first launched online sports betting at noon on March 11. The Tar Heel State was expected to generate $64 million in its first year.

“The legalization of sports betting will provide a significant boost to North Carolina’s economy. … [Legal wagering] will allow our thriving sports industry to continue to grow,” Gov. Roy Cooper said that day. This was before he placed a bet on the Carolina Hurricanes to win the Stanley Cup.

However, Cooper’s prediction appears to have underemphasized the state’s true potential. North Carolinians wagered more than $1 billion in the first 60 days after legalization.

By July 1, the state had generated more than $50 million in taxes — almost 80% of the $64 million it expected to collect for the entire year.

Stephen Shapiro says gambling peaks during football season

“They’ve definitely seen a consistent high level of gambling productivity in the market since March,” Stephen Shapiro added. “And we haven’t even gotten to football season, which is when you see the biggest boost in gambling activity.”

A sports betting bill, introduced by Rep. Chris Murphy (Rep-Dorchester County), proposed online sports betting for professional and college sports. It was projected to raise at least $20 million a year in new revenues. Additionally, about 80% would have been donated to the state’s General Fund.

Illegal gambling is another factor that lawmakers are keeping in mind. Offshore sportsbooks are potentially costing the Palmetto State millions of dollars. That could be an understatement, according to Murphy. During the springtime, he said the lost tax revenue is in the billions.

“Studies have shown that there is about $2.5 billion annually that’s being wagered online in South Carolina illegally,” Murphy told his colleagues in a March 2023 committee hearing. “The hope of this legislation would be to eradicate that illegal wagering.”

Murphy’s bill had nearly $300,000 in lobbying support from sports wagering advocate groups like the Sports Betting Alliance. Though, the legislation fell short along with the horse-race gambling bill in May.

In 2023, lawmakers rejected a bill that would have allowed statewide digital sports betting with a 10% tax rate. The bill would have permitted some licensees to be allocated to the state’s PGA Tour stops and Darlington Raceway.

Shapiro says sports leagues are aware that fans will consume more sport if they are gambling

A major obstacle is South Carolina Gov. Henry McMaster’s opposition. McMaster has been in office since 2017 and the next chance to replace him is in 2026.

“The governor has always opposed legalized sports betting and campaigned against it during the 2022 gubernatorial election,” Brandon Charochak, a McMaster spokesperson, told Statehouse Report earlier this month. “His position remains unchanged.”

As of August 2024, there are eight online sportsbooks available in North Carolina: bet365, BetMGM, Caesars, DraftKings, ESPN BET, Fanatics, FanDuel, and Underdog Sportsbook.

Until sports betting is legalized in South Carolina, residents will have to either enter the Tar Heel State to place a wager, or they will be forced to use unregulated, offshore sportsbooks.

This will eventually force the hand of South Carolina lawmakers to legalize sports betting. Shapiro believes it’s only a matter of time before the state enters the U.S. betting market.

“You’re watching multiple games at one time instead of just one game,” Shapiro added. “You’re paying attention to players that are not just on your team, but players that are on other teams.

“And so, from a sport-business perspective, leagues love it. A sport fan is going to consume more sport if they are gambling. And they are going to care about more teams and players than if they were not gambling.”

South Carolina, Texas, and California are among the states that have yet to legalize sports wagering.