South Carolina law shields qualifying racing facilities from nearby lawsuits

A qualifying racing facility is protected from nuisance or taking lawsuits brought by a nearby property owner. The covered area extends three miles from the boundary of the property or connected properties where the facility is located. A facility includes its track, spectator areas, garages, and related grounds and buildings. The developer must have obtained all required construction permits and established a vested right to develop the property. Before the owner bought the property or built in the area, reasonable inquiry, including a search of public records or permits, must have been able to reveal the development. The protection does not limit nuisance actions by law enforcement or a government body over activity unrelated to lawful construction and operation. The facility must make reasonable progress on construction within two years after obtaining all required permits. The law took effect when the governor approved it on May 19, 2026.

The protection does not apply when a facility makes a substantial, material expansion that significantly increases overall use. This exception applies to a racing facility otherwise covered by the protection from nearby owners’ nuisance or taking lawsuits. A demonstrable increase beyond twice the number of racing event days may show a significant increase in use. The comparison uses the facility’s historical pattern of operation from before the nearby owner bought property or built in the area.