Bill Could Allow Residents to Buy Lottery Tickets with Debit Cards
The South Carolina legislature is advancing a bill to permit the use of debit cards for lottery ticket purchases in the state.
South Carolina wants to legalize debit card for lottery tickets.
Key Facts:
- The South Carolina legislature is advancing a bill to permit the use of debit cards for lottery ticket purchases
- If approved, this change would allow players to use their debit cards in addition to cash
- Initiative reflects a broader trend towards modernizing financial transactions in the state
South Carolina lawmakers seek innovative ways to increase state revenue and appeal to younger generations. A proposed bill could allow residents to purchase lottery tickets using debit cards, marking a significant shift in the state’s lottery policy.
Currently, South Carolina is one of only three states that restrict lottery purchases to cash transactions, a policy many legislators now consider outdated. The South Carolina Education Lottery, a focal point in this year’s legislative session, is at the center of discussions about expanding payment options and how lottery funds should be allocated — such as potential support for private education.
Lottery officials argue that the current cash-only rule costs the state millions in lost revenue. During a recent hearing, Dolly Garfield, the South Carolina Lottery Executive Director, highlighted the issue, citing missed opportunities from out-of-state visitors and younger residents who rarely carry cash.
“I can’t imagine how many sales we’re losing at gas stations along our interstates,”Garfield said. “People stop for a drink, want to buy a ticket, but they only have a debit or credit card. That sale is lost.”
The proposed Senate Bill 169 seeks to modernize the system by allowing debit card payments while maintaining restrictions on credit cards, checks, and other deferred payment methods. All transactions would still require in-person purchases at licensed retailers, with lottery courier services remaining prohibited.
Younger Players, Greater Revenue Potential
The push to permit debit card payments is largely driven by a desire to attract younger players. According to Garfield, younger generations tend to avoid cash, and expanding payment options could broaden the lottery’s appeal.
A survey conducted by the Lottery Commission revealed that 430,000 non-players in South Carolina would consider buying tickets if debit card payments were an option. This demographic shift is estimated to generate an additional $186 million annually, with $52 million flowing directly to state programs. The remainder would be distributed as prizes.
Governor Henry McMaster strongly supports the bill, emphasizing its educational benefits. “A lot of young people have gotten educated who wouldn’t have without lottery revenue”, McMaster stated. “If we don’t adapt, we risk undermining the very purpose of this program.”
Opposition and Concerns
While the bill faces little resistance in the House or Senate, not everyone is on board. Sue Berkowitz, Director of the S.C. Appleseed Legal Justice Center, expressed concerns about the impact on low-income residents.
“So many people in South Carolina are already struggling with rising costs of living,” Berkowitz said. “Allowing debit card purchases increases the likelihood of impulsive spending, which could worsen financial hardships.”
Implications for Lottery Revenue and Education Funding
Lottery officials warn that maintaining the cash-only system could result in declining profits. Annual lottery revenues have hovered between $500 million and $600 million, but forecasts suggest this figure could drop to $450 million by fiscal year 2027. This decline could jeopardize scholarship funding, which provided $426 million and $415 million in aid during the 2022-2023 and 2021-2022 school years, respectively.
The bill, introduced on January 14, has been referred to the Senate Committee on Education for review. Lawmakers are expected to hold additional hearings, consider amendments, and vote on whether to advance the legislation to the full Senate.
If passed, this modernization effort could secure the future of the South Carolina Education Lottery, ensuring it continues to fund vital educational initiatives while adapting to changing consumer habits.
