South Carolina’s House of Representatives have approved a bill that would legalize online wagering on horse racing by a vote of 54-44.
The bill’s passage marks the first time in decades that the state’s legislative body has voted in favor of legal gambling legislation. The state has been notoriously resistant to legal gambling with the exception of nonprofit raffles and the state lottery which was formed in 2001.
House Bill 3514, passed with the support of 27 Republicans and the same number of Democrats. The bill will see a commission created to regulate the industry and set a minimum tax rate of 10%. It will also allow for up to three online bookmakers to provide horse race wagering in the state.
Rep. Russell Ott said of the bill:
“I am just happy for so many people across the state that are working in this industry that get up every day and go and train horses or go and breed horses. I think this gives them hope.”
For the last 50 years, the equine industry in South Carolina has been experiencing a downward trend, partly attributed to the overall decline of horse racing. However, another contributing factor is that other states have been providing incentives for horse breeders and owners to keep their horses in their stables, often financed by gambling profits.
Equine training center owners have urged legislators to enact the bill as a means of revitalizing their industry without making direct investments from public funds.
Ott suggested that the state would receive offers from vendors to pay more than 10% minimum tax rate in order to receive one of the three licenses available.
The state’s budget forecasters have estimated that even at a tax rate of 10%, online betting could generate revenues ranging from $385,000 to $1.9 million annually for the state.
However, the bill faces further obstacles before it is signed into law. The most notable is Gov. Henry McMaster’s opposition to legal gambling in any form. On April 6, McMaster’s office confirmed the governor would veto the bill if it reached his desk.
An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.