A proposal to legalize casino gambling in South Carolina and establish the first resort in a town of Orangeburg County located in the Santee River Valley has been introduced in the capital of Columbia.
Wallace Cheves, a prominent real estate developer in the Carolinas with strong connections to state legislators in Columbia and Raleigh, has revealed a $1 billion plan for a casino and resort in Santee, located on the site of the closed Santee Outlets. The previous shopping center is positioned directly off Interstate 95.
Cheves states that a casino resort will aid in revitalizing Orangeburg County, where nearly 22% of residents live in poverty, and is expected to create an approximate $8 billion economic impact on South Carolina’s economy during the initial 10 years of operation.
"Since 2002, the South Carolina Education Lottery has generated more than $8 billion to support education — an example of how regulated gaming can provide a lasting, positive impact on our state’s future,” Cheves said, as first reported by The Times and Democrat.
Cheves is committing to finance the project without using “a single cent of local or state” taxpayer funds, encompassing incentives or subsidies.
South Carolina Gambling Odds
Local authorities in Santee and nearby Vance informed The Times and Democrat that they plan to meet with Cheves this week to gain more insight into his goals. Statewide voters, nonetheless, would hold the ultimate decision.
In South Carolina, the only legal form of gambling is the state-operated lottery. For that to occur, legislation would need to pass through the General Assembly.
House Bill 4176 aims to accomplish exactly that. Submitted in December by Representatives Todd Rutherford (D-Richland) and Hamilton Grant (D-Richmond), the legislation would permit not just slot machines and live dealer table games but also sports betting and parimutuel wagering. HB4176 would distribute future tax revenue from the new gaming types to local governments for the construction, maintenance, and repair of highways, roads, and bridges.
The likelihood of the bill passing isn't particularly high, since the GOP-led legislature has consistently rejected gaming proposals before. There has been minimal progress on HB4176, as the proposal has remained stagnant with the House Judiciary Committee since mid-January.
Catawba’s Dual Monarchs Initiative
The chances of South Carolina enacting laws that enable voters to decide the future of Cheves' Santee casino aspirations probably enhance due to his engagement. Cheves has a varied public image in the Carolinas, as the Republican donor has encountered legal troubles previously that led to millions in civil penalties.
One of Cheves' most notable controversies is the Catawba Indian Nation’s protracted effort to establish a tribal casino in Kings Mountain. Cheves played a key role in helping the tribe overcome obstacles in its effort to have land obtained in 2018 recognized as sovereign to permit a Class III gaming establishment.
Cheves’ Sky Boat Gaming, LLC, was set to assist in funding and co-owning the tribe’s $700 million casino named Two Kings. The National Indian Gaming Commission (NIGC) subsequently expressed worries regarding the partnership between Sky Boat and the Catawba, as it would mainly advantage Cheves rather than the tribe.
The decision by the NIGC led to Cheves' exit from the project, with the tribe compensating him a confidential separation amount. Surprise emerged when the little tribe decided to buy 9.7 acres of land managed by Cheves adjacent to the Two Kings project location for an astonishing $40 million. The transaction encompassed two easement rights to the land that Cheves also possesses.
Cheves subsequently filed a lawsuit against the tribe, claiming that its construction vehicles infringed on the easement rights. He is pursuing monetary compensation in the current legal case.
