Crypto Funding and Esports in South Carolina’s Sports Betting Bill

Crypto Funding and Esports in South Carolina’s Sports Betting Bill

House Bill 5277, or HB 5277, is a legislative bill that is sponsored by Rep. Todd Rutherford and Rep. William Herbkersman. The bill looks to legalize online and sports betting in South Carolina. House Bill 5277 was recently presented for discussion for the third time.

It now also highlights a new account funding option, making way for the integration of Cryptocurrency. House Bill 5277 has defined cash equivalents as foreign currencies and crypto, digital, & virtual currencies.

If South Carolina succeeds in passing the bill, then the region would set traction for other gaming operators.

Bitcoin is leading the race for the time when the bill is cleared. Many other Cryptocurrencies are eventually expected to be integrated soon. A list of Cryptocurrencies has not been officially published, but Bitcoin’s popularity among the community members has made it an obvious choice.

Brands like DraftKings have expressed their interest in accepting Cryptocurrency as a form of payment. For instance, Jason Robins, the Chief Executive Officer of DraftKings, had said in the previous year that his company was ready to accept Cryptocurrency as a form of payment.

State regulators currently don’t have any provision in this matter. The landscape remains wide, waiting for the revolution expected to happen by June 15, 2022.

Analysts believe that since the legislative session would run throughout June 15, 2022, there is an opportunity that House Bill 5277 could be cleared by then.

Esports is first in line to capture the maximum market. Esports is, without any doubt, the most-watched sports event. After making the debut, Esports could eclipse every other sporting event in television viewership. The only exception, in this case, is the NFL which may retain the top spot.

House Bill 5277 requires operators to pay 10% of the adjusted gross revenue to the state in the form of a tax and the annual fee of $500,000.

Once passed and implemented, operators will have to dedicate 80% of the proceeds to the education lottery fund, 15% to the general fund, and the remaining 5% to responsible gaming & gambling addiction efforts.

Despite sounding like a financial burden, House Bill 5277 is estimated to benefit 8 to 12 sportsbook operators in South Carolina.

With many sports franchises and venues considering applying for a betting license, the list goes on. NASCAR and PGA Tour events have already expressed their desire to apply in South Carolina.

Similar sports brands plan to function under a unique partnership with commercial operators by negotiating the terms of the legislation.

North Carolina and Georgia, the neighboring states of South Carolina, would be surpassed if the legislation goes through the session for implementation. Both neighboring states appear to struggle in their respective areas of concern.

North Carolina permits only in-person betting at tribal casinos, but Georgia witnesses frequent stalls and failures of gaming legislation.

The future growth of the US sports betting industry is driven by wagering on competitive gaming. A positive step in favor of the industry could benefit a lot.

Author: Ava Harvey