Columbia, S.C. – In a move to modernize South Carolina’s lottery system, Governor Henry McMaster is proposing that residents be allowed to purchase lottery tickets using debit cards, a departure from the cash-only policy in place since the lottery’s inception in 2001.
The announcement came Monday as part of the governor’s unveiling of his 2025-26 budget proposal at the State House. South Carolina is currently one of only three states—alongside Tennessee and Wyoming—that prohibits the use of debit cards for lottery ticket purchases.
“Many businesses no longer accept cash, and many people don’t carry it,” McMaster said, highlighting the need for the change.
The cash-only rule, established when the lottery was created 24 years ago, has faced growing scrutiny as lottery investment proceeds have declined. According to the Board of Economic Advisors, lottery investment returns are expected to fall short by $31.9 million compared to last year’s budget. However, the South Carolina Education Lottery estimates that allowing debit card purchases could generate an additional $52 million annually in lottery proceeds.
Where the Money Would Go
McMaster plans to allocate the anticipated funds to bolster current lottery-funded programs, including the LIFE, HOPE, and Palmetto Fellow college scholarships. Additionally, he aims to channel some of the revenue into the Education Scholarship Trust Fund, a private school voucher program.
The voucher program was struck down last year by the South Carolina Supreme Court, which ruled that using state funds for private schools violated the state constitution. However, proponents argue that using lottery proceeds, rather than general state funds, could sidestep constitutional challenges and allow the program to continue.
The governor’s proposal would still prohibit the use of credit cards for lottery ticket purchases.
This policy shift, if approved by the General Assembly, could mark a significant change for the state lottery system, aligning it more closely with consumer preferences and potentially boosting educational funding across South Carolina.
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