South Carolina Casinos Unlikely, Despite Bill

South Carolina has resisted legalizing gambling beyond a state lottery. But with billions of dollars required for road repairs, lawmakers may reconsider state House Minority Leader Todd Rutherford's (l.) proposed legislation, similar to a bill he introduced but died last year, allowing voters to decide if legislators should be able to legalize gambling.

South Carolina has a state lottery but it is one of only four U.S. jurisdictions without commercial or tribal casinos, racetrack or parimutuel wagering or even charitable gambling. But state House Minority Leader Todd Rutherford recently filed a bill to allow casino gambling and use the state’s portion of revenue for billions of dollars in much-needed road repairs. “If this state was operated like a business, we would have had casinos years ago. Everywhere we turn, we are dealing with the Republicans’ failure to lead. All they have done is kick the can down the road, and, in doing so, they’ve put this state in the hole,” Rutherford said. He introduced the same legislation last year, but it died in the House Judiciary Committee.

Supporters acknowledge Rutherford’s bill again faces strong opposition. But this year, because of budget shortfalls at state agencies, plus the possibility that Georgia could legalize casinos, legislators may be persuaded to reconsider gambling.

Under Rutherford’s bill, South Carolina voters would decide whether to give legislators the power to legalize gambling, including betting on professional sports, horse racing and casino games, in specified areas of the state. The ideal locations for casino resorts, according to supporters, would be Myrtle Beach, just south of Charlotte or across the Georgia state line from Savannah.

They add each casino site could create tens of thousands of jobs and generate hundreds of millions of dollars in annual tax revenue, with an economic impact of $2 billion a year. Supporters also noted the state loses income when South Carolina residents gamble out of state. Harrah’s Cherokee in North Carolina greets two busloads of South Carolina residents a week, for example.

A co-sponsor of Rutherford’s bill, state Rep. Russell Ott, agreed, stating, “I go two or three times a year, and I take all of my money to North Carolina, and I use it there. I would much rather be able to take my money to Myrtle Beach or somewhere else here in the state of South Carolina and have South Carolinians employed and have my money go to the local economy.”

But Myrtle Beach Area Chamber of Commerce Chief Executive Brad Dean said, “South Carolina’s roads are in terrible shape, and we desperately need sustainable infrastructure funding. But the idea of building a casino in Myrtle Beach to help fund statewide road improvements is not a solution.”

House Judiciary Chair state Rep. Greg Delleney said, “Gambling doesn’t make for good citizens” or produce the revenue its supporters promise. In good conscience, I just couldn’t support it.” And state Rep. Gary Simrill, the House’s roads expert, said a gas tax hike still is the best way to fund road repairs. “I just don’t think it’s a good direction for South Carolina. South Carolina has so many qualities to it. In our lexicon of what we do and how we do things, we’re a jobs and economic development state. I don’t think we need the premise and the promise of gambling revenue to pay for other services.”

Others oppose gambling on moral grounds. Palmetto Family Council Chief Executive Oran Smith said, “When you have gambling addiction, you have people that are hoping to change their lives dramatically through gambling. They’re putting more into their gambling habit than feeding their families or putting gas into their vehicles to go to work.”

A Winthrop Poll conducted in October 2014 indicated an even split on the question of allowing casinos in South Carolina, with 47.3 percent for and against it. And in a February 2015 survey, Public Policy Polling found 58 percent of South Carolinians chose legalizing casinos as the best way to fund road repairs, versus 26 percent who said raise the state gasoline tax by 10 cents per gallon.