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South Carolina and South Dakota to Discuss Online Sports Betting Legislation

In February, lawmakers in South Carolina and South Dakota are set to deliberate on legislative proposals regarding online sports betting, highlighting a pivotal moment for the gambling industry in these states. On February 18, the South Carolina Senate Labor & Commerce Subcommittee will review S 444, a bill proposing the establishment of a capped online sports betting industry with eight sportsbooks and a sports wagering commission. Despite Governor Henry McMaster’s anti-gambling stance, the proposal has persisted into the current legislative session. Meanwhile, South Dakota’s SJR 504 aims to let voters decide in November on allowing online sportsbooks, contingent on partnerships with casinos in Deadwood. This follows the 2020 approval of in-person sports betting in the town.

The South Carolina proposal represents a significant regulatory shift, potentially expanding the state’s gambling landscape. The limitation to eight sportsbooks and the creation of a sports wagering commission are designed to ensure regulatory oversight and industry stability. However, with Governor McMaster’s opposition to gambling, the bill faces potential hurdles. In contrast, South Dakota’s initiative to expand into online sports betting suggests a potential evolution of its gaming industry, contingent upon voter approval. Past efforts to broaden the state’s gambling sector have encountered resistance, indicating that any advancement will necessitate overcoming significant opposition.

In Maryland, discussions continue over the regulation of sweepstakes casinos, with Senate Bill 112 addressing existing loopholes. Maryland Lottery and Gaming Control Agency Director John Martin highlighted the regulator’s ongoing enforcement challenges, despite the capability to issue cease-and-desist orders. The state Senate approved a sweepstakes casino ban in 2025, though the House did not address the legislation, underscoring the complexity of achieving consensus. Additionally, Maryland legislators are set to evaluate HB 518 on February 12, which seeks to prohibit college player prop bets, reflecting growing regulatory scrutiny over specific gambling activities.

Mississippi mirrors Maryland’s regulatory efforts, with the Senate committee advancing SB 2104 to prohibit sweepstakes casinos. The state previously led the nation in passing such legislation, but prior attempts to incorporate online sports betting provisions resulted in legislative gridlock. The current proposal, devoid of online betting elements, may face a clearer path through the legislative process, demonstrating lawmakers’ willingness to regulate specific gambling formats while eschewing broader industry expansions.

Louisiana is examining a bill pre-filed by Representative Bryan Fontenot, HB 53, which proposes categorizing certain gambling offenses as racketeering predicates. This includes “gambling in public,” “gambling by computer,” and “gambling by electronic sweepstakes device.” Last year, Governor Jeff Landry vetoed a sweepstakes casino ban because the existing regulatory framework already empowered enforcement actions. The Louisiana Gaming Control Board’s subsequent issuance of over 40 cease-and-desist letters highlights ongoing enforcement efforts against illegal gambling operations.

In Alabama, Senator Merika Coleman plans to introduce legislation allowing voters to decide on constitutional amendments for a gambling commission and legislation for lotteries, gambling, and sports betting. This follows previous unsuccessful attempts to pass comprehensive gambling legislation, despite Governor Kay Ivey’s support. Ivey’s establishment of a gambling study commission in 2020 underscores her commitment to evaluating potential regulatory frameworks.

Maine’s legislative agenda includes LD 2080, a bill aimed at prohibiting the use of credit cards to fund sportsbook accounts. The proposal also seeks to encompass the newly sanctioned online casino industry, demonstrating lawmakers’ intent to establish a responsible gambling environment. Meanwhile, a legal challenge from a land-based casino against Maine’s tribal-exclusive online casino law points to ongoing disputes over market access and regulatory privileges.

In Virginia, Delegate Garrett McGuire has proposed HB 1527, seeking to permit betting on NCAA Division I teams within the state. The bill stipulates a 50% tax rate on revenues from such bets, significantly higher than the current 15% tax, with proceeds supporting Virginia college sports via the NCAA Division Sports Betting Fund. The proposal is linked to the creation of a Virginia Gaming Commission, part of broader legislative efforts to consolidate regulatory oversight.

Washington State is also contemplating an expansion of its sports betting options. Current regulations permit in-person betting at tribal casinos and app-based wagering linked to tribal lands. Proposed changes include allowing multiple operators at tribal casinos and permitting bets on in-state college teams, while prohibiting player props for Washington athletes. These potential adjustments reflect lawmakers’ engagement with evolving market demands and competitive positioning within the broader U.S. gambling landscape.

As legislative sessions progress, the outcomes of these deliberations will significantly impact regulatory environments and business strategies in each state. The potential for expanded market access and tighter regulatory controls underscores the complexities faced by lawmakers, operators, and stakeholders in navigating the evolving gambling sector. The next steps will involve close monitoring of legislative developments, voter responses, and regulatory enforcement actions shaping the future of gambling across these jurisdictions.