Online Gambling License in South Carolina

The state of South Carolina is quite conservative when it comes to gambling activities and heavily restricts them. However, not all forms of entertainment are prohibited in the Palmetto State. The South Carolina Department of Revenue regulates the ones allowed. If you want to learn more about this government agency and the types of gambling available in South Carolina, we’ve got you covered.   

What is the South Carolina Department of Revenue?

The South Carolina Department of Revenue (SCDOR) is a state government agency. As such, it is responsible for administering and enforcing tax laws and regulations and overseeing certain regulatory activities, including managing the state’s lottery and charitable gaming.

One of the key functions of the SCDOR is tax collection and administration. However, it also oversees the lottery operations, including the sale of lottery tickets and the distribution of funds to public education programs.

Furthermore, the SCDOR regulates charitable forms of entertainment, such as bingo, raffles, and other games. To host these games, nonprofit organizations must comply with state laws and obtain approval from the SCDOR.

Types of Gambling Regulated by the South Carolina Department of Revenue

Although the Catawba Indian Nation is a federally recognized tribe in South Carolina, there are no tribal casinos in the Palmetto State. South Carolinians can enjoy only two legal forms of gambling.

Charitable Gaming

Bingo is one of the most common gaming activities in South Carolina. However, organizers can host it only for charitable purposes, meaning they must use the funds generated to support charitable activities in the state. Additionally, limits apply to the amounts that players can wager and win.

The SCDOR issues 8 types of bingo licenses, including a Catawba Indian Special License. Depending on the type of license the organizer obtains, maximum payouts vary from $20 to $200,000 per game or session.

Nonprofit groups in South Carolina can also organize raffles to raise funds according to state laws.

State Lottery

Another legal form of entertainment in South Carolina is the state-run lottery. The South Carolina Education Lottery offers various products, from popular draw games like Powerball and Mega Millions to scratch-offs. It is run by the South Carolina Education Lottery Commission, a state agency responsible for overseeing the operation and regulation of the lottery.

The lottery directs its revenue to support education programs in South Carolina. Since the state lottery launched in 2002, it has transferred $592 million for education, awarded over 2.7 million scholarships to students, and paid out $1.6 billion to lottery winners.

The South Carolina Department of Revenue’s Legal Framework

The South Carolina Department of Revenue’s primary duty is to oversee tax collection. However, it also regulates gambling activities by ensuring compliance with state laws. Here, you can get familiar with the critical components of South Carolina’s gambling legal framework:

• Illegal gaming activities: Apart from the state-run lottery and charitable gaming, all other forms of entertainment are banned in South Carolina. Land-based casinos, commercial horse racing, and pari-mutuel wagering are prohibited. At the time of writing this article, there were no active horse racing tracks in the state. South Carolina does not permit online casinos, poker rooms and in-person or online sports betting.
• Taxation: The South Carolina Department of Revenue collects taxes on winnings from the South Carolina Education Lottery. Winnings above a certain threshold are subject to state income tax. At the same time, the SCDOR oversees the taxation of nonprofit organizations that conduct bingo games and raffles.
• Enforcement of gambling laws: The Department of Revenue collaborates with other state agencies to investigate illegal gambling activities. For instance, it has worked with the South Carolina Law Enforcement Division (SLED) to curb illegal video poker operations since its ban was enacted in 2000.

Like in other US states, gambling gains in South Carolina are subject to a state income tax. The state tax rate for lottery winnings is based on the individual’s total income tax bracket and ranges from 0% to 7%.

As for nonprofit organizations, the SCDOR must refund 28% of the monthly taxes paid by those running a bingo game.

FAQs about the South Carolina Department of Revenue