Regulatory Considerations for Online Casino Operators Targeting South Carolina Players

Regulatory Considerations for Online Casino Operators Targeting South Carolina Players

Posted on September 28, 2024 by in Gambling
Regulatory Considerations for Online Casino Operators Targeting South Carolina Players
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Gambling is at odds with South Carolina’s values. Currently, there are no legal online casino platforms in the state. However, it doesn’t mean the locals can’t enjoy the gambling action like other US residents.

South Carolina has no specific regulation prohibiting residents from playing real money casino games. Thus, the state’s gambling market is in the gray area. It means betting fanatics can play at regulated online casinos that accept worldwide players.

A Brief History of South Carolina Gambling

The settlers in South Carolina introduced dog fighting, cockfighting, boxing, target shooting, horse racing, wrestling, and rat fight events in the later 1700s and early 1800s. In 1802, the state started to enact laws to restrict gambling activities.

The government passed Section 16-19-40 of the Code of Laws that banned most forms of betting throughout South Carolina. This step ended the gambling market in the state.

However, the residents got one more chance to enjoy gambling activities with the enactment of South Carolina’s Bingo Act in 1976. This law allowed non-profit bingo events through licensed organizations. The residents also got access to video poker around the 1980s, but not for long. In 1999, the government again banned video poker gaming.

For a change, South Carolina legalized lottery games throughout the state in 2000. It has been a popular real-money casino game for the locals. Since then, the state has passed no new gambling law or act.

Statutes for Charitable Bingo Halls

A non-profit organization can host charitable bingo games only after obtaining a license from the South Carolina Department of Revenue (SCDOR). At least three-year-old South Carolina NGOs can apply for the bingo license, and the organization must have been functional for at least two years.

Distributors, promoters, and manufacturers of bingo cards should also apply for a license from SCDOR. A promoter must pay a $1,000 license fee each year. The annual license fee for the distributor is $2,000, while the manufacturer can obtain a bingo license by paying $5,000 annually.

Further, bingo players must pay an entrance fee of $3, $5, or $18 as per the operator’s class of license. The state also allows players to use hand-held electronic dabbers to mark the cards during gameplay.

According to the Bingo Act 1976, a bingo game host can offer only one prize per gaming event. Changing the winning prize or offering unequally valued prizes is illegal for organizers.

South Carolina Education Lottery

The South Carolina government established the state lottery in November 2000, but ticket sales began in January 2002. Unlike other US states, the Palmetto State calls the lotto games the South Carolina Education Lottery.

According to the South Carolina Education Lottery Act, 40% of revenue goes to educational programs, 45% to prizes, and 15% to expenses.

Today, the state lottery hosts various types of lotto games, like Powerball, Palmetto Cash 5, Cash Pop, Mega Millions, Pick 4 Plus Fireball, and Pick 3 Plus Fireball. Currently, the state is also a member of the Multi-State Lottery Association.

Residents can buy tickets from licensed lottery agents across the state. Besides, the state has an official South Carolina Education Lottery site that features lucrative promotions and club rewards for frequent players. Locals will also find scratch-off games to win real cash.

The legal age to play lottery games is 18 years in South Carolina.

South Carolina’s Taxation Policy on Bingo and Lottery Events

A licensed bingo game operator must pay tax based on the number of bingo cards sold during the charitable event. Bingo manufacturers, promoters, and distributors must also comply with the same tax rate for all bingo cards sold. The SCDOR uses collected tax revenue for the state’s general fund, benefiting aging, parks, and recreation initiatives.

According to Sec. 12-36-2120(60) SC Code, lottery tickets are exempt from sales tax. However, winnings above $500 are subject to federal and state income tax.

Advent of Offshore Online Casinos in South Carolina Market

Undoubtedly, South Carolina has strict online gambling policies. However, the laws on chance-based games are also vague to an extent. Hence, the virtual betting market is in a grey area.

The unclear rules open another gateway for South Carolinians to enjoy real money gambling on offshore casinos. These sites accept gamblers from all over America.

As regulated outside the US border, an offshore online operator adheres to the betting laws in the country of its headquarters. These gambling sites feature an extensive collection of casino games. Besides, the overseas-based South Carolina casino online allows transactions via various banking methods like crypto, credit/debit cards, and e-wallets. Thus, deposits and withdrawals will be seamless.

Similarly, offshore sportsbook sites allow South Carolinians to bet on diverse local and international sports events. Thus, they can satisfy their betting desires from the comfort of their homes.

However, here’s the catch. Although regulated, these gambling sites don’t guarantee consumer protection.

Is Online Sports Betting Law On the Cards?

Residents from 36 US states can access online sports betting sites today. After the federal government legalized sports betting, several US states passed bills to allow betting on e-sportsbooks.

Will South Carolina follow suit? Well, the state currently has no sports betting statute. However, lawmakers like Rep. Rutherford and Senator Gerald Malloy are contemplating legal ways to provide e-sportsbooks access like other neighboring states. That said, the state has proposed bills in the legislation to enact the sports betting law in the future.

According to industry insights, the state can soon legalize sports gambling. It’ll also bring more tax revenue to the state. Experts believe the state’s sports betting market can generate $40 million in revenue if the bill passes.

So, South Carolina punters can keep their fingers crossed. Coming years may bring sports betting to their doorstep.

Measures for Responsible Gambling Habits

The South Carolina Lottery Commission advocates responsible play for residents. Players can set a weekly or monthly budget and stick to it. They should never chase losses and avoid access gambling.

Besides, the lottery site features SC Gambling helpline numbers and online resources. Problem gamblers can contact these channels to curb addiction signs.

FAQs

Which are the best offshore casino sites in South Carolina?

Bovada, LuckyDuck, SlotsandCasino, and SuperSlots are popular offshore casino sites in the US market.

What payment methods are available on offshore gambling sites?

Offshore casino sites accept payments via various banking methods, including Wire Transfers, PayPal, Apple Pay, Visa, MasterCard, Cash App, Venmo, and Cryptocurrency. Payment gateways levy a certain transfer fee for international transactions.

Are offshore gambling sites safe?

Offshore South Carolina casino and sports betting sites use cutting-edge systems to secure sensitive user data, such as SSL encryption, blockchain technology, and multi-factor authentication. However, review the operator’s credibility before signing up only on any online platform.

What games are available on offshore casino sites?

You can gamble on a range of casino genres, such as slots, blackjack, poker, roulette, baccarat, bingo, scratch cards, and more.

Which sports markets are hosted on online sportsbooks?

Overseas-based sportsbook sites offer betting options on various sports events, such as NFL, NBA, soccer, badminton, rugby, tennis, ice hockey, and others.

Final Thoughts

South Carolina and gambling are in a complicated relationship. There has been no progress or amendments in the state’s gambling laws for years. Religious opposition is a primary reason authorities hesitate to legalize this market.

However, there’s a ray of hope. With North Carolina relaxing the betting laws, Palmetto State legislators can eventually pursue legalization.

Not to forget, South Carolina was once a hotbed for video poker, which enticed many locals. It shows residents will welcome revised betting laws. Besides, the government can control the unregulated market by establishing gambling statutes.

 

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