A Look at South Carolina Gambling Laws
The legal framework governing gambling in South Carolina is highly nuanced and restrictive. From the birth of the nation to today, many of our colonies, state legislatures, and even the Congress of the United States have viewed gaming with skepticism. In fact, the Colonial Assemblies and the Continental Congresses prohibited card playing and gambling. In 1789, the Court for Over and Terminer in Charleston sentenced a soldier to 39 lashes for gaming and playing cards and for carrying a "two-penny halfmoon." This combination of historical and social pressures against gambling led to the enactment of criminal statutes throughout the United States, and more specifically, in South Carolina. The prohibition of gambling in South Carolina is still evident in the overall structure of the gambling laws that are currently in effect. In South Carolina, "[g]ambling is illegal except and excepted defined by statute." S.C. Code. Ann. § 16-19-305. To help illustrate this nuance, it is helpful to first examine the four broad categories of gambling laws: (i) criminal laws; (ii) public user laws; (iii) administrative law; and (iv) common law and case law. Criminal law relates to gambling in three type of situations: (i) unlawful gambling; (ii) unlawful bookmaking; and (iii) promotion of gambling. Criminal gambling laws are found in Title 16, Chapter 19 of the South Carolina Code of Laws and Title 58, Chapter 23 of the South Carolina Code of Laws. To get an overview of the criminal laws pertaining to unlawful gambling, unlawful bookmaking, and the promotion of gambling, see §16-19-305 of the South Carolina Code of Laws . The public user laws pertain to gaming on college and professional sports, gaming on unlicensed auto races (i.e., not certified as a "messenger race" by the South Carolina Department of Revenue), and the state-run lottery. These public user laws are codified in Title 33, § 32-200 of the South Carolina Code of Laws. "Administrative law" refers to rules and regulations enacted by the South Carolina Legislature, such as the South Carolina Bingo Game Enabling Act of 1997, as well as legislative guidelines and directives for the Department of Revenue, such as the Regulation 49-100, the Bingo Regulations. The Bingo Regulation governs the use of Bingo cards and all activities concerning Bingo games and allows certain charities to apply for and conduct "limited lottery" games. The Bingo Board is authorized to issue such licenses. Traditionally, lotteries have been held by the states to raise revenue for educational and other public facilities. The practice of conducting lotteries in South Carolina dates back to 1696 and reflects both a social and moral concern for the good of the community. The South Carolina Lottery Act was enacted in 2001 to create a lottery to assist in the funding of education. "Common law and case law" pertains to gaming or betting by private individuals or between individuals, and includes loss limits and bet limits, but excludes wagering on sporting events by individuals. It is important to note that other than an application of common law and case law, the prohibition against gambling is absolute because the games have no established exception from the use of Note (4) above.
Legal Forms of Gambling in South Carolina
In South Carolina, gambling is not legal except for certain conditions. Wagering on the allotment or distribution of prizes or monies among two or more persons, contingent upon chance and to which the performance of the parties is not material, is illegal. But allowed are certain gambling games conducted to benefit a charitable, religious, or nonprofit purpose, which are known as "4(b)" games as defined by the South Carolina Code of Laws. The types of games may include: bingo, raffles, sweepstakes, an entertainment series with prizes, a 50/50 drawing, two hundred fifty tickets or less issued for sale, only one drawing, and prizes of equal or greater value (with the "net proceeds" of the sale used for the legal purpose).
Also allowed are pari-mutuel wagering on horse or dog races, riverboat gambling (permitted under a special act), a Lottery (also referred to as the South Carolina Education Lottery) and, under very strict guidelines, ticket or raffle orders with various maximum amounts allowed.
Illegal Gambling
Illegal gambling activities in South Carolina can include the following:
• participation in a casino or riverboat as a patron or employee.
• participation in poker games off property in the form of poker rooms;
• participation in a sports pool where players may choose a city, team or individual and win money;
• participation in football pools.
• participation in a horse race better known as a "horse pool."
• participation as an employee (croupier) of any organization or group that operates a card game, non profit casino or poker game;
• participation in a private office or soccer pool; and
• participation in an online gambling or poker website.
Violation can be punishable by a fine of $5,000.00 or imprisonment for 3 years, or both.
Gambling Law Violations and Penalties
Once a person has been convicted of violating unlawful gambling provisions under the South Carolina Code of Laws, numerous penalties and legal repercussions may follow.
Probation
A person convicted of violating the offenses outlined in Chapter 19 may be put on probation by the court.
Community Service
The court may also impose community service, which must be performed in accordance with its regulations and under its supervision. Participants may not be paid in wages or salary and are not classified as employees of any agency or department as a result of the community service.
Judicial Assignment
Those found guilty may be sentenced to judicial assignment, which requires them to be assigned to work at the discretion of the Chief Justice. There is no monetary wage available for its performance.
Community Supervised Work Program
A community supervised work program audience may include work for the county, a special purpose district or other political subdivision of the state. It is limited to custodial and maintenance work in no way related to the terminated services of employed personnel. Specifics include:
Individuals charged with a violation of Chapter 19 may be imprisoned not more than 30 days or fined not more than $100. Any individual participating in unlawful gambling or keeping a gambling place is guilty of a misdemeanor and, upon conviction, must be punished by imprisonment for not more than 90 days or by a fine not exceeding $500, either or both, at the discretion of the court.
If one is found guilty of a second offense described in the unlawful gambling statutes, the person must be punished by imprisonment for not more than 180 days or by a fine not exceeding $1,000, either or both, at the discretion of the court.
However, if one is found guilty of a third or subsequent offense described in the unlawful gambling statutes then he or she must be punished by imprisonment for not more than three years or by a fine not exceeding $3,000, either or both, at the discretion of the court.
Gaming Exceptions to the General Law
In addition to the general criminalization of gambling in the State of South Carolina, the statutes also exclude a handful of exceptions and special provisions, primarily exemptions for bingo and raffles. Specifically, S.C. Code Ann. § 57-25-110 exempts bingo from Section 57-25-10’s prohibition against gambling by providing an exemption if the following conditions are met: 1) that the bingo game "is played to raise funds exclusively for the charitable purpose of a nonprofit organization"; 2) that no more than one hundred dollars in prizes is paid in any one game; 3) that only members of the qualified organization may play; 4) that no person receives a wage or other remuneration for managing or running the game or for selling or renting any equipment used in the game; and 5) that the bingo game cannot be played outside of any home, nonprofit organization, church, or civic organization . S.C. Code Ann. § 57-25-130 ("a regular bingo game conducted in accordance with the provisions of this article which is an occurrence at the same time or place as a regularly scheduled meeting or function of the nonprofit organization or is conducted in an area identified in § 57-25-110 open to attendance by the public is exempt from the provisions of subsection (b) of § 57-25-10.") As to raffles, a second carve out is included in S.C. Code Ann. § 57-25-110 which provides that a raffle "conducted to raise money for charitable purposes" shall not violate Sections 57-25-10 or 57-25-20 and which further mandates that such raffles be "conducted in accordance with the rules established by the easily ascertainable governing authority or, in the absence of regulation, pursuant to the official rules of the National Raffle & Law Compliance Association."
What Will Happen to SC Gaming Laws
The concept of expanding legalized gambling in South Carolina has become a hot topic of discussion. Over the past year the state has seen a notable increase in the number of bills introduced that would expand gambling within the state. While language varies in each bill, the proposed legislation includes items such as a new state-sponsored lottery drawing, video lottery terminals, historical horse racing, a county-by-county referendum on the establishment of casinos, and a proposed state-sponsored sports betting book.
Each year the S.C. House of Representatives has a specific committee responsible for reviewing and reporting on gambling-related bills. In its review process last year, the House Ways and Means Committee met for several hearings where they heard testimony from state officials and constituents. The hearings included testimony from the director and deputy director of the S.C. Department of Revenue who spoke about how different types of gambling impact the Department’s Administrative Law Court. The Department also reported that it has collected a total of more than $30 million in sales and use taxes from the video poker grudge tax since it came into effect in 2007. However, in its testimony to the Committee, the Department stated it does not support the expansion of gambling in South Carolina, but noted that any decision is a legislative call.
The South Carolina Policy Council, a conservative think-tank dedicated to limited government and free markets, produced a report opposing gambling expansion bills. The report, which was presented to the S.C. House Ways and Means Committee regarding the S.C. Triple Crown Act (H. 4274), cited issues of crime, corruption, and addiction surrounding gaming and linked casino-style gambling to prostitution and human trafficking. This report and its quotes from South Carolinians opposing gambling expansion did not go unnoticed. The New York Times published an article that highlighted the opinions set forth by the Policy Council and also included a statement from a representative from the Cayce Community of South Carolina, which is the site of the upcoming $350 million casino project on the banks of the Congaree River.
Other proposed legislation in South Carolina includes a proposed amendment to the S.C. Constitution freeing up funds raised through lottery proceeds and the transient room tax. The bill proposes that the funds be distributed to the South Carolina Infrastructure Bank for highway construction projects. While the bill passed last year with near unanimous support, it has since stalled in the Senate Finance Committee.
Additionally, Charleston County has taken a vote to permit a measure on expanding gambling to be added to the ballot this year. The ballot measure would allow Charleston County Council to issue five-year permits to create casinos. If approved, the bill would allow anyone 21 or older to gamble on a boat for a five-hour period and would permit a five-year license for slot machines, table games, and sportsbooks. A similar proposal passed in Berkeley County last year where the Council voted to place the measure on the ballot, but the County Council was not permitted to issue the license itself.
SC Gamblers’ Resources
There are a number of organizations that can provide assistance to individuals having problems with gambling. Most of them are support groups that meet in many locations around the State. Many of them have websites providing information and contacts for individuals seeking help.
Gamblers Anonymous (GA) – an international fellowship of men and women who have come together to share their experience, strength, and hope with one another that they might solve their common problem and help others to recover from a gambling problem. GA is nonreligious, but not anti-religious; The only requirement for membership is a problem with gambling. The primary purpose of GA is to help people with a gambling problem. GA meetings can be found in many SC cities.
Gam-Anon – is for family and friends of the gambler. It is a 12-step, self-help, support program modeled after Gamblers Anonymous. Gam-Anon was established in 1958 to offer understanding, help, and support to those who are affected by someone else’s gambling problem. Meetings are free and confidential.
National Council on Problem Gambling (NCPG) – The mission of the NCPG is to improve public awareness of the social and economic effects of problem gambling, advocate for public policies that benefit the public and those directly affected by gambling, and assist programs and services to those affected by problem gambling . The Council serves as a national advocate, educator, and resource for programs and services to assist problem gamblers and their families. The SC Department of Alcohol and Other Drug Abuse Services (DAODAS) is a member of the NCPG.
GamTalk – is an online support group for gamblers and recoverees from gambling addiction. It offers forums for individuals to discuss their issues and connect with other people with similar issues.
GamCare – is a leading national provider of free information, advice, support and free counseling for anyone affected by problem gambling. GamCare provides support, advice and information to anyone affected by problem gambling. GamCare helps those experiencing problems with their gambling, as well as their friends and family. GamCare provides training, resources and accreditation to the gambling industry to help promote social responsibility.
South Carolina Victim Assistance Network (SCVAN) – includes the council which administers victim compensation funds in SC. Victim services include offering treatment for gambling addiction.
For more information on gambling support services in South Carolina, visit the DAODAS website or the NCPG website.