Missouri lawmakers are reviewing a proposal that may increase taxes and costs on casinos and sports activities betting operators because the state considers methods to scale back its reliance on revenue tax income.
Home Invoice 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 payment construction that has largely remained unchanged since on line casino playing started within the state in 1994, whereas additionally creating new costs tied to the just 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.
On line casino Charges May Rise Sharply
One of the vital important adjustments in HB 3533 would enhance the on line casino admission payment from $2 to $5.50. The invoice would additionally require the payment to be charged each two hours, slightly than as soon as per go to. The payment would then be adjusted yearly for inflation.
Casinos presently pay the admission payment 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 payment for inflation would carry it to about $4.31 immediately.
Rep. Tim Taylor, R-Bunceton, supported revisiting the long-standing payment construction. “Income from lottery and from casinos has all been down, I feel perhaps presently it’s up barely, however it’s been woefully insufficient,” Taylor stated. “That is the unique payment from means again when, so we haven’t addressed it in a very long time.”
The invoice would additionally direct $15 million in internet proceeds from the gaming fee fund to the Division of Pure Sources Historic Preservation Revolving Fund.
Sports activities Betting Additionally Faces New Costs
HB 3533 would create a 1.5 % “distant wagering entry payment” for on-line or distant wagering. The primary $35 million collected from that payment would go to the Division of Pure Sources Historic Preservation Revolving Fund.
The measure additionally proposes a further 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 through the first two months, however the state collected lower than $700,000 in tax income throughout that interval. Promotional deductions have lowered taxable income, whereas the present sports activities betting tax charge 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 Affiliation, 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 got here into Missouri after we constructed our services in search of a steady playing market, and I feel that’s what we’ve acquired,” Winter stated. “However when you’ve payments like this … there could also be extra favorable markets on the market than what this invoice would permit Missouri to be.”
Winter additionally questioned whether or not lawmakers can regulate sports activities betting taxes by extraordinary laws, since voters authorised sports activities betting by a constitutional modification. Committee chair Rep. Jeff Myers, R-Warrenton, stated that concern can be dealt with individually.
Broader Tax Debate Shapes the Proposal
The on line casino tax proposal is transferring in opposition to the backdrop of a bigger effort to eradicate or cut back Missouri’s revenue tax. A proposed constitutional modification linked to that effort has superior by the Legislature and will attain voters later this 12 months.
Revenue 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 payment dialogue to that broader fiscal shift. “We’re seeking to do away with the revenue tax and (shift) to a fee-based construction. How will we make up (for) these variations after they begin ensuring that we’re maintaining our charges?” he requested.
The Missouri Chamber of Commerce and Trade additionally testified in opposition to the invoice. Probability Hepola, the group’s director of presidency affairs, urged warning when singling out particular sectors for greater taxes.
“From our perspective, we simply wish to watch out on elevating a few of these charges and taxes on particular industries,” Hepola stated, as reported by the Missouri Tribune. “We wish to be conscious of selecting winners and losers with regards to sure issues which can be funding particular tasks.”
The invoice has acquired committee consideration however has not superior to a full Home vote. With the legislative session approaching its deadline, its fast future stays unsure. Nevertheless, the proposal indicators that casinos and sports activities betting could stay a part of Missouri’s tax debate as lawmakers seek for substitute income.
