As March Madness approaches, the American Gaming Association predicts a record-breaking $3.1 billion in legal wagers, highlighting the growing acceptance of sports betting nationwide. However, South Carolina remains on the sidelines, missing out on potential revenue and economic benefits.
Key Takeaways:
- Legal sports betting for NCAA tournaments expected to reach $3.1 billion
- South Carolina still prohibits sports gambling, losing potential tax revenue
- Neighboring states, especially North Carolina, benefiting from SC bettors
March Madness Betting Bonanza
The American Gaming Association’s forecast of $3.1 billion in legal wagers for this year’s NCAA basketball tournaments represents a 12% increase from 2024. This surge in betting activity will be spread across 38 states and the District of Columbia, each claiming their share of tax dollars and fees from every placed bet.
South Carolina’s Missed Opportunity
While other states cash in on the sports betting boom, South Carolina remains one of the few holdouts where sports gambling is still illegal. Despite multiple attempts to introduce legislation, including a bipartisan effort in 2024, the state has yet to establish a framework for legal sports betting.
Rep. Chris Murphy (R-North Charleston) is spearheading a new effort with House Bill 3625, but even if approved, implementation would take at least a year. This delay continues to cost the state potential revenue, as South Carolinians find ways to place bets elsewhere.
Cross-Border Betting Exodus
The lack of legal options hasn’t stopped South Carolina residents from participating in sports betting. Many are crossing state lines to place their wagers, with North Carolina emerging as a popular destination.
Murphy highlighted the scale of this exodus: “During Super Bowl weekend, there were 1.3 million bets attempted in South Carolina on sports gaming apps that were denied based on geotracking. But the interesting thing is those people then got in their cars and went to North Carolina to make a bet. And it was from all over the state — people from Beaufort, Greenville, everywhere.”
North Carolina’s Winning Formula
North Carolina’s sports betting program has proven successful, not only generating revenue for state services but also supporting college athletics. The state allocates up to $300,000 annually in gambling tax revenue to the athletic departments of 13 state universities and colleges, with some institutions receiving nearly $1.7 million in the program’s first year.
Matt Roberts, College of Charleston’s athletic director, expressed support for a similar model in South Carolina: “Sports gambling is occurring in our venues, it’s occurring in our communities, and it’s become just a regular form of entertainment. Why not find a way to capture some of the revenue it generates? I’d be all for it.”
Balancing Act: Revenue vs. Responsibility
While the potential for increased revenue is appealing, stakeholders acknowledge the need for responsible implementation. The NCAA has partnered with EPIC Global Solutions to provide gambling harm education across 270 campuses nationwide.
Winthrop University is taking proactive steps, making these seminars mandatory for some student-athletes and working on guidelines to prohibit students, faculty, and staff from gambling on Winthrop sports.
Chuck Rey, Winthrop’s athletic director, cautioned: “The money is nice, but you’ve got to understand — or almost worry — about where it’s coming from.”
As South Carolina continues to debate the merits of legalizing sports betting, neighboring states are reaping the benefits. The question remains: how long can the Palmetto State afford to sit on the sidelines?
