DraftKings is partially legal in South Carolina. The daily fantasy sports (DFS) product is available to residents who are at least 18, but the DraftKings Sportsbook is blocked statewide because South Carolina has not legalized sports betting. Confusing the two is the main way people get into trouble, so it helps to keep them separate from the start.
Why Daily Fantasy Sports Are Available
South Carolina has no statute that specifically authorizes daily fantasy sports, and no statute that specifically bans them. DraftKings operates in that silence, relying on the argument that assembling a fantasy roster is a contest of skill rather than a wager on a single game’s outcome. The state Attorney General’s office has declined to take enforcement action against online gambling platforms, and no prosecutor has tested the theory in court.
The stronger legal footing comes from federal law. The Unlawful Internet Gambling Enforcement Act of 2006 generally prohibits payment processors from handling transactions tied to illegal online gambling, but it carves out fantasy sports contests that meet three conditions under 31 U.S.C. § 5362(1)(E)(ix):1Office of the Law Revision Counsel. 31 USC 5362 – Definitions
- All prizes are set and disclosed before the contest begins, and their value doesn’t depend on entries or fees collected.
- Winning outcomes reflect participants’ skill and are based on accumulated statistics from multiple real-world events.
- Results cannot be based on a single team’s score, a point spread, or one athlete’s performance in a single event.
DraftKings structures its DFS contests to satisfy each condition. That federal carveout doesn’t override state law, but it lets banks and payment processors move deposits and withdrawals without federal exposure, which is what keeps the platform functional for South Carolina players.
South Carolina’s gambling laws still date to the 1800s, and Section 16-19-130 in particular sweeps broadly enough to potentially reach modern online contests, prohibiting the recording of bets on any “trial or contest of skill, speed or power of endurance.”2South Carolina Legislature. South Carolina Code Title 16 Chapter 19 – Gambling and Lotteries The reason DFS operates anyway is practical: no one has brought a case. That’s the gray area, and players should know it exists.
Why the DraftKings Sportsbook Is Blocked
Straight sports wagering — picking a team, a spread, or a game total — is not offered on DraftKings in South Carolina. The U.S. Supreme Court’s 2018 decision in Murphy v. National Collegiate Athletic Association gave states the authority to legalize sports betting, but South Carolina’s legislature hasn’t done so.3Supreme Court of the United States. Murphy v. National Collegiate Athletic Association Placing a bet on a game therefore remains a violation of state law under Section 16-19-130.2South Carolina Legislature. South Carolina Code Title 16 Chapter 19 – Gambling and Lotteries
A recent legalization effort, House Bill 3625, was prefiled in December 2024 and introduced in January 2025. It would authorize interactive sports wagering under a new regulatory framework, but as of early 2025 it sat in the House Ways and Means Committee without a hearing scheduled.4South Carolina Legislature. 2025-2026 Bill 3625 – Interactive Sports Wagering Until a bill like that passes and is signed, the sportsbook stays closed.
DraftKings enforces the block with GPS-based geolocation. If you open the sportsbook app while physically in South Carolina, it will refuse to accept a wager, even if your account was opened in a state where sports betting is fully legal. There’s no legitimate workaround. Trying to spoof your location violates the platform’s terms of service and can cost you your account and any balance in it.
Account Rules for South Carolina Players
To play paid DFS contests on DraftKings from South Carolina, you must be at least 18.5DraftKings. Where is DraftKings Available Sign-up requires identity verification: your legal name, address, date of birth, and Social Security number. The SSN is driven by federal anti-money-laundering rules and IRS reporting, not by the platform being intrusive. Inaccurate information can result in account suspension and forfeiture of your balance.
Geolocation must be enabled every time you enter a paid contest. South Carolina is on the eligible list for DFS, so the check is a formality when you’re in state. Travel to one of the states that doesn’t allow paid DFS — Hawaii, Idaho, Montana, Nevada, Oregon, or Washington — and the platform blocks entries until you return to an eligible location.5DraftKings. Where is DraftKings Available
Taxes on DFS Winnings
Winnings from DFS contests are taxable. The IRS requires you to report all gambling and contest income on your federal return, even amounts that fall under any reporting threshold.6Internal Revenue Service. Topic No. 419, Gambling Income and Losses
DraftKings typically issues a Form 1099-MISC for DFS winnings, treating the contests as skill-based competitions rather than gambling. For the 2026 tax year, the information return threshold for forms like 1099-MISC and W-2G rises to $2,000, up from $600.7Internal Revenue Service. Instructions for Forms W-2G and 5754 (01/2026) If your net DFS profit stays below $2,000 for the year, you won’t get a form, but you still owe tax on the income. Keeping your own log of deposits, withdrawals, entry fees, and prizes is the only reliable way to file accurately.
South Carolina taxes DFS winnings as ordinary income. For the 2026 tax year, the state applies a 1.99% rate on income under $30,000 and 5.21% on income above that threshold.8South Carolina Department of Revenue. Information About H. 4216 Your winnings stack on top of your other income, so the effective rate depends on your total earnings.
Offshore Sportsbooks Are Not a Legal Workaround
Because the DraftKings Sportsbook is blocked, some South Carolina residents look at offshore sites that accept U.S. customers regardless of state law. The FBI has warned that these platforms lack the consumer protections required of licensed U.S. sportsbooks, meaning a site can simply refuse to pay you and leave you with no legal recourse.9Federal Bureau of Investigation. Great Odds, High Risk: The FBI Encourages U.S. Bettors to Know the Risks of Illegal Gambling
The FBI also notes that illegal gambling operations often fund other criminal activity, that bettors who can’t cover losses face potential extortion, and that any winnings can implicate you in tax evasion or money laundering because the transactions are structured to avoid regulators.9Federal Bureau of Investigation. Great Odds, High Risk: The FBI Encourages U.S. Bettors to Know the Risks of Illegal Gambling Many offshore sites also use marketing designed to look U.S.-based, which gives bettors a false sense of legitimacy. Until South Carolina passes a sports wagering law, licensed DFS contests on platforms like DraftKings are the only legal way to compete for real money on sports outcomes in the state.