Missouri lawmakers are reviewing a proposal that might increase taxes and charges on casinos and sports activities betting operators because the state considers methods to scale back its reliance on revenue tax income.
House Bill 3533, sponsored by Rep. Jeff Knight, R-Lebanon, would have an effect on Missouri’s 13 casinos and licensed sports activities betting platforms. The invoice targets a price construction that has largely remained unchanged since on line casino playing started within the state in 1994, whereas additionally creating new fees tied to the lately launched sports activities betting market.
The proposal comes as state lawmakers proceed discussing a broader shift away from revenue tax. Supporters of the on line casino tax invoice argue that gambling-related charges haven’t saved tempo with inflation or present fiscal wants, whereas trade representatives warn that the adjustments might place a heavy monetary burden on operators.
Casino Fees Could Rise Sharply
One of probably the most vital adjustments in HB 3533 would improve the on line casino admission price from $2 to $5.50. The invoice would additionally require the price to be charged each two hours, quite than as soon as per go to. The price would then be adjusted yearly for inflation.
Casinos at present pay the admission price on behalf of consumers. Supporters of the invoice say the unique $2 determine has misplaced worth over time. Rep. Barry Hovis, R-Whitewater, famous that adjusting the price for inflation would carry it to about $4.31 immediately.
Rep. Tim Taylor, R-Bunceton, supported revisiting the long-standing price construction. “Revenue from lottery and from casinos has all been down, I think maybe currently it’s up slightly, but it’s been woefully inadequate,” Taylor mentioned. “This is the original fee from way back when, so we haven’t addressed it in a long time.”
The invoice would additionally direct $15 million in internet proceeds from the gaming fee fund to the Department of Natural Resources Historic Preservation Revolving Fund.
Sports Betting Also Faces New Charges
HB 3533 would create a 1.5 p.c “remote wagering access fee” for on-line or distant wagering. The first $35 million collected from that price would go to the Department of Natural Resources Historic Preservation Revolving Fund.
The measure additionally proposes a further 13 p.c tax on playing receipts and a 24 p.c extra tax on sports activities wagering receipts. These would come on prime of present tax obligations.
Missouri’s sports activities betting market launched on December 1, 2025. Operators dealt with practically $1 billion in wagers in the course of the first two months, however the state collected lower than $700,000 in tax income throughout that interval. Promotional deductions have diminished taxable income, whereas the present sports activities betting tax price stands at 10 p.c.
HB 3533 would change how sports activities betting income is taxed by making use of the tax earlier than promotional deductions. Knight has mentioned the invoice might generate an estimated $470 million, although trade representatives dispute that projection.
Mike Winter, a lobbyist for the Missouri Gaming Association, opposed the invoice and mentioned the proposal might value casinos greater than $500 million. He additionally warned that Missouri operators already face stress from slot machines in comfort shops and gasoline stations.
“We came into Missouri when we built our facilities looking for a stable gambling market, and I think that’s what we’ve got,” Winter mentioned. “But when you have bills like this … there may be more favorable markets out there than what this bill would allow Missouri to be.”
Winter additionally questioned whether or not lawmakers can alter sports activities betting taxes by way of abnormal laws, since voters permitted sports betting by way of a constitutional modification. Committee chair Rep. Jeff Myers, R-Warrenton, mentioned that problem can be dealt with individually.
Broader Tax Debate Shapes the Proposal
The on line casino tax proposal is shifting towards the backdrop of a bigger effort to get rid of or scale back Missouri’s revenue tax. A proposed constitutional modification linked to that effort has superior by way of the Legislature and will attain voters later this 12 months.
Income tax represents a significant share of Missouri’s normal income. If lawmakers transfer ahead with a phaseout, the state would wish various funding sources to cowl a possible multibillion-dollar hole.
Rep. Hovis related the on line casino price dialogue to that broader fiscal shift. “We’re looking to get rid of the income tax and (shift) to a fee-based structure. How do we make up (for) those differences when they start looking at making sure that we’re keeping up our fees?” he requested.
The Missouri Chamber of Commerce and Industry additionally testified towards the invoice. Chance Hepola, the group’s director of presidency affairs, urged warning when singling out particular sectors for larger taxes.
“From our perspective, we just want to be careful on raising some of those fees and taxes on specific industries,” Hepola mentioned, as reported by the Missouri Tribune. “We want to be mindful of picking winners and losers when it comes to certain things that are funding specific projects.”
The invoice has acquired committee consideration however has not superior to a full House vote. With the legislative session approaching its deadline, its rapid future stays unsure. However, the proposal indicators that casinos and sports activities betting might stay a part of Missouri’s tax debate as lawmakers seek for substitute income.
