Missouri lawmakers are reviewing a proposal that will elevate 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 prices 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 business representatives warn that the adjustments may 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, slightly than as soon as per go to. The price would then be adjusted yearly for inflation.
Casinos presently pay the admission price on behalf of shoppers. 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 as we speak.
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 stated. “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 % “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 an extra 13 % tax on playing receipts and a 24 % extra tax on sports activities wagering receipts. These would come on high of current 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 %.
HB 3533 would change how sports activities betting income is taxed by making use of the tax earlier than promotional deductions. Knight has stated the invoice may generate an estimated $470 million, although business representatives dispute that projection.
Mike Winter, a lobbyist for the Missouri Gaming Association, opposed the invoice and stated the proposal may 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 stated. “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 regulate sports activities betting taxes via peculiar laws, since voters accepted sports betting via a constitutional modification. Committee chair Rep. Jeff Myers, R-Warrenton, stated that difficulty could be dealt with individually.
Broader Tax Debate Shapes the Proposal
The on line casino tax proposal is shifting in opposition to the backdrop of a bigger effort to remove or cut back Missouri’s revenue tax. A proposed constitutional modification linked to that effort has superior via the Legislature and will attain voters later this 12 months.
Income tax represents a serious share of Missouri’s common income. If lawmakers transfer ahead with a phaseout, the state would want 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 in opposition to the invoice. Chance Hepola, the group’s director of presidency affairs, urged warning when singling out particular sectors for increased taxes.
“From our perspective, we just want to be careful on raising some of those fees and taxes on specific industries,” Hepola stated, 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 obtained committee consideration however has not superior to a full House vote. With the legislative session approaching its deadline, its instant future stays unsure. However, the proposal alerts that casinos and sports activities betting could stay a part of Missouri’s tax debate as lawmakers seek for substitute income.
