Treatment funds in proposed South Carolina online betting plan

South Carolina lawmakers have proposed a framework for legalizing online sports betting that could generate approximately $40 million annually, with 5% of the revenue set aside for problem-gambling treatment and prevention programs. The plan, introduced by Senators Tom Davis and Matt Leber in 2025, would allow up to eight companies to operate the online sportsbooks, but the betting activity itself remains illegal in the state.

Each operator would be required to pay a $100,000 application fee and a $1 million licensing fee, and the proposed tax on adjusted gross receipts would be 12.5%, with the revenue split favoring the state's General Fund and local governments for infrastructure. The South Carolina Department of Mental Health would receive 5% of the revenue to support problem-gambling treatment and prevention initiatives, while an additional 3% would cover administrative costs.

A new nine-member Sports Wagering Commission would oversee the market. The dedicated allocation for treatment and prevention aims to ensure these programs are funded as part of the proposal, rather than being competing demands for the remaining revenue. South Carolina's proposal follows a 2018 U.S. Supreme Court decision allowing state-regulated sports betting, with 39 states and Washington, D.C. now following suit.

The state is currently outside the group that has legalized sports betting, although residents have reportedly been using gambling apps, fantasy sports products, and offshore sportsbooks. Other gambling-related bills have been introduced in recent legislative sessions, but none have gained as comprehensive a scope as the Davis-Leber proposal.

The debate surrounding the proposal involves both the potential for public revenue and the risks associated with gambling, such as the need for prevention and treatment resources. Governor candidates Alan Wilson and Jermaine Johnson have expressed differing opinions on the issue, with Wilson opposing legalization even after voter approval and Johnson supporting it only if voters approve it first, emphasizing the importance of safeguards to address gambling addiction in his family.