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High Stakes on I-95: South Carolina Casino Bill Splits Voters Down the Middle

$1 Billion Casino That Could Create 5,000 Jobs Has Locals Divided

High Stakes on I-95: South Carolina Casino Bill Splits Voters Down the Middle
Baden-Wuerttemberg, Stuttgart: ILLUSTRATION | MARIJAN MURAT / DPA / dpa Picture-Alliance via AFP

When the House Ways & Means Revenue Policy Subcommittee met Tuesday, the room felt like a high-stakes poker game. Two hours of testimony and more than a dozen speakers set the tone when the House Ways & Means Revenue Policy Subcommittee took up H-4176, the I-95 Economic and Education Stimulus Act.

Business leaders and clergy went head-to-head, distilling South Carolina’s dilemma: Is a casino resort in rural Orangeburg County a winning hand or a losing bet? This bill would create the South Carolina Gaming Commission and award a single 10-year license to a betting casino in an “economically distressed” county along I-95.

Applicants would have to pay a non-refundable $500,000 fee, invest at least $200 million in real property upgrades, and deliver an economic impact study before dealing the first card.

Companion bills would expand gaming regulations for sports betting (H-3625) and clarify skill game exemptions (H-4129).

Together, they are the most comprehensive gambling expansion proposal the state has seen in decades and one that has certainly made casino news.

Cold Feet at the Table

Proponents painted a picture of prosperity. Orangeburg Chamber president James McQuilla said the plan would “touch every diner, school and gas station from Santee to St. George.” Hayes Gainey of Santee Development Corporation said a cash casino could “wipe out a lot of poverty” in a county where unemployment is 16%.

However, opponents warned of new money, old risks. Reverend Steve Pettit called playing blackjack for money “hope repackaged as harm.” A Baptist Convention brief cited studies linking casinos to higher bankruptcy, theft, and divorce rates.

Governor’s Bluff?

Also, Governor Henry McMaster’s office said he will veto any gambling expansion, so supporters will need to round up a two-thirds override before the first shovel hits the ground.

A second hurdle is constitutional. Even if lawmakers override a veto, South Carolinians will still have to approve an amendment at the ballot box. This is no sure thing given the state’s history of being anti-casino and anti-online gambling regulations.

To top it all off, the Catawba Nation is split; some leaders see sovereignty and jobs, others warn of outside exploitation, adding another layer of uncertainty to the hand being played.

Promised Payouts

Developer Wallace Cheves and the Santee Development Corporation bought the shuttered Santee Mall for $700,000 in 2017 and now envision a $1 billion casino-resort.

An independent study projects 4,618 permanent jobs and nearly 7,000 construction posts, plus $58 million a year in new tax revenue.

Backers, including Orangeburg Chamber president James McQuilla, say the money would be earmarked for underfunded I-95 school districts where almost 40% of children live below the poverty line.

Supporters also note that residents already cross state lines to play at online casinos available in other jurisdictions. Keeping this money in-state would capture revenue that’s currently leaking to Georgia, North Carolina, and others.

Odds and Next Moves

Chairman Bruce Bannister’s panel recessed without a vote, opting to review amendments on local-option referendums, addiction-mitigation funding, and revenue-sharing formulas. With sine die set for 8 May, the clock is as tight as a final-table blind.

If the bill moves forward, backers hint at adding more to the pot. Perhaps more money for treatment programs or infrastructure to sway wavering lawmakers and voters. But only time will tell if this proposal will win or bust.

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