Momentum Builds: Legislative Wave Could Transform Sports Betting Landscape in South Carolina

The sports betting sector is entering a critical phase as South Carolina lawmakers advance comprehensive gambling expansion bills ahead of the January 14 legislative session. Two competing proposals—focusing on sports betting alone versus a broader gaming package—signal the state’s shifting attitude toward regulated wagering and represent a potential turning point for one of the nation’s most gambling-resistant states.

South Carolina’s Dual Path to Legalization

Prefiled legislation demonstrates South Carolina’s serious intent to modernize its gaming framework. House Bill 3625, termed the “South Carolina Sports Wagering Act,” targets sports betting exclusively, proposing creation of a Sports Wagering Commission to oversee professional and collegiate wagering. The approach prioritizes a narrow but focused regulatory structure designed for swift implementation.

House Bill 3353 takes a wider angle, proposing a constitutional amendment permitting sports betting alongside pari-mutuel horse racing and full casino gaming including electronic and table games. This model mirrors Mississippi’s successful sports betting framework, with generated revenue directed toward infrastructure enhancement—highways, bridge reconstruction, and related projects. The dual-bill strategy reflects ongoing debate between incremental versus transformational reform.

Both measures face formidable headwinds given South Carolina’s historically restrictive gambling position. H.3625 routes through the House Ways and Means Committee while H.3353 enters the House Judiciary Committee, setting up parallel approval pathways that could determine 2025’s legislative trajectory.

Industry Momentum and Market Dynamics

The South Carolina initiative arrives amid broader sector consolidation and strategic repositioning. Recent transactions underscore accelerating consolidation: Gaming and Leisure Properties completed a $395 million acquisition of land and real estate assets from two major casino properties, establishing $32.2 million in annual rent with an 8.2% capitalization rate and 2.2x rent coverage projection.

Digital platform expansion continues reshaping competition. Penn Entertainment’s new standalone Hollywood Casino application launched across Pennsylvania, offering over 700 iCasino titles with integrated ESPN Bet connectivity. The seamless cross-platform experience demonstrates how operators are enhancing user retention through technological integration and jurisdictional expansion.

Sector Valuation and Analyst Perspective

Wall Street reassessed gaming equities during recent periods. Deutsche Bank elevated multiple operators’ price targets while transitioning valuation baselines from 2025 to 2026. Elevated targets included Wynn Resorts to $128, MGM Resorts to $49, Gaming and Leisure Properties to $58, and DraftKings to $36. Barclays and Wells Fargo initiated coverage on Gaming and Leisure Properties and Golden Entertainment respectively, citing transparent operational structures and stabilizing fundamentals expected through 2025.

Analysts increasingly view online gaming as the sector’s strongest growth driver. The online vertical remains the only major gaming segment sustaining double-digit expansion without economic dependency. Research firms project consistent performance across jurisdictions through 2030, with online sportsbooks and iCasino platforms demonstrating superior resilience compared to land-based alternatives.

Operational Performance and Market Hold Trends

Recent gaming week data revealed below-average hold levels extending into third consecutive week. Market hold estimates of 5% overall with NFL-focused 2% hold and other sports 9% hold suggest tightening margins. Q4 projections adjusted downward to 8.6% from normalized 9% levels, reflecting competitive pressures and promotional intensity.

State-by-state performance diverges significantly. New York’s trailing one-month handle growth decelerated to high-single digits amid tougher year-over-year comparisons and operator adoption of conservative promotional positioning in the high-tax environment. Illinois data highlighted shifting preference patterns, with parlay and same-game parlay products rising to 31% of total handle—indicating user appetite for elevated-risk wagers.

Application ecosystem competition intensified during measurement periods. Market share leadership shifted across platforms, with download rankings and active user distribution determining operator positioning. Specialized platforms captured category leadership positions while established sportsbooks maintained substantial user bases despite increased fragmentation.

Regulatory and Compliance Considerations

Compliance challenges persist globally. Entain Group acknowledged civil penalty proceedings initiated by Australia’s regulatory authority regarding alleged Anti-Money Laundering and Counter-Terrorism Financing Act contraventions. The company expanded compliance program implementation targeting June 2025 completion, while acknowledging potential material penalty exposure subject to Federal Court proceedings.

Such enforcement actions reflect intensifying regulatory scrutiny across major markets, establishing compliance infrastructure as core competitive advantage for institutional operators maintaining transparent, proactive governance frameworks.

Path Forward for Expansion Markets

South Carolina’s legislative moment represents inflection point for regional gaming expansion. Successful legalization could catalyze additional state-level initiatives while validating online gaming’s revenue generation capacity for infrastructure and public funding objectives. The outcome influences whether gaming legalization follows Mississippi’s infrastructure-focused model or narrower sports betting-specific frameworks pursued across emerging markets.

Industry participants are positioned for sustained growth contingent upon legislative progression and continued double-digit expansion through regulated sports betting and iGaming channels across North American jurisdictions.