Equine bill would create commission and ADW licensing; committee strikes some revenue components and narrows regulatory delegation

Legislative sponsors presented the South Carolina Equine Advancement Act, which would establish an Equine Commission, authorize advanced-deposit wagering (ADW) licenses, and create an Equine Industry Development Fund to make grants to qualified recipients that promote and support the state's horse industry.

Staff described the bill's structure: definitions (ADW, simulcast, mobile electronic devices, pari-mutuel wagering), the composition of the Equine Commission (ex officio Director of the Department of Revenue or designee as chair, two commissioners appointed by the Senate president, two by the House speaker, and two by the governor), application and license fees (an initial application fee of $5,000 and a $1,000 renewal fee), and monthly and annual license-fee components tied to wagers. The commission would have rulemaking and grant-administration authority, and the bill includes a prohibition on wagering on historical horse racing (races that have already occurred).

The subcommittee amendment struck multiple revenue-raising provisions and limited the commission's broad regulatory delegation so that more details remain in statute rather than being left entirely to administrative rule. The amendment also shifted the cost of background checks to applicants and added advertising restrictions modeled on other states' codes. Proponents said the measure is intended to help revive the horse industry in rural communities by funding grants for breeding, training centers and related projects.

Members questioned scope and safeguards: senators asked whether wagering would be limited to races run in South Carolina or allowed on any live race; staff explained the bill as drafted would permit wagering on live races anywhere unless further limited. Several members expressed philosophical objections to legalizing off-track wagering beyond the state lottery; one described concern that the bill, as drafted, creates broad off-track wagering where users could bet on live races worldwide via ADW licenses. The subcommittee said it struck some revenue items to improve the bill’s chance of House consideration and left the Equine Industry Development Fund in place but without restored dedicated revenue in the amendment.

Next steps: sponsors and staff said they will continue to work on license caps, revenue channels and scope before any House consideration; the committee took the measure up with a subcommittee amendment intended to make the Senate bill more acceptable to the House.