Columbia, South Carolina.Governor Henry McMaster wants to update South Carolina’s lottery system by allowing citizens to buy tickets with debit cards instead of cash, which has been the only method of payment since the lottery’s start in 2001.
The statement was made on Monday during the governor’s State House budget plan release for 2025–2026. Along with Tennessee and Wyoming, South Carolina is presently one of just three states that forbids the purchase of lottery tickets using debit cards.
McMaster emphasized the necessity of the move by saying that many individuals no longer carry cash and that many companies no longer take it.
Since lottery investment revenues have decreased, there has been increasing scrutiny of the cash-only requirement, which was put in place when the lottery was first founded 24 years ago. The Board of Economic Advisors estimates that lottery investment returns will be $31.9 million less than the budget for the previous year. But according to the South Carolina Education Lottery, enabling debit card purchases might result in an extra $52 million in lottery revenue per year.
Where the Money Would Go
McMaster intends to use the expected funds to support existing lottery-supported initiatives, including as the Palmetto Fellow college scholarships, LIFE, and HOPE. He also plans to use a portion of the proceeds to fund a private school voucher program called the Education Scholarship Trust Fund.
The South Carolina Supreme Court invalidated the voucher program last year, ruling that it was unconstitutional to use public monies for private education. However, supporters contend that by using lottery winnings instead of regular state funding, the scheme might avoid constitutional issues and continue.
The governor’s plan would continue to forbid buying lottery tickets with a credit card.
If ratified by the General Assembly, this policy proposal could significantly alter the state lottery system, bringing it more in line with customer desires and possibly increasing financing for education throughout South Carolina.