Missouri Casino Tax Bill Adds 24% Tax on Sportsbooks
Missouri lawmakers are considering House Bill 3533, a proposal that would raise casino fees and gambling taxes as the state weighs a shift away from income tax. As reported by News Tribune, the bill is sponsored by Rep. Jeff Knight and would affect Missouri’s 13 casinos and sports betting platforms.
The bill targets fees that have stayed unchanged since casino gambling began in Missouri in 1994. For operators, the main commercial pressure would come from a higher admission fee, new charges on remote wagering, and additional taxes on both casino and sports betting receipts.
Bill raises the cost base for casinos
Under HB 3533, Missouri’s casino admission fee would rise from $2 to $5.50 and would be charged every two hours. The fee would also rise annually with inflation.
Casinos currently pay the admission fee on behalf of customers. Rep. Barry Hovis said a simple consumer price index adjustment would put the original $2 fee at $4.31 today.
The bill would also impose a 13% additional tax on gambling receipts and a 24% additional tax on sports wagering receipts. It would create a 1.5% remote wagering access fee, with the first $35 million collected directed to the Department of Natural Resources Historic Preservation Revolving Fund.
A further $15 million in net proceeds from the gaming commission fund would go to the same fund. Rep. Tim Taylor supported the measure, saying casino and lottery revenue had been “woefully inadequate.”
Casino lobby warns of half-billion-dollar cost
Mike Winter, a lobbyist for the Missouri Gaming Association, opposed the bill during committee testimony. He said the proposal would cost his clients more than half a billion dollars.
Winter argued that Missouri casinos already face revenue pressure from slot-style machines in convenience stores and gas stations. He also said the two-hour admission fee model would affect casino operations, not only margins.
“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 said. “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 also questioned whether lawmakers could raise sports betting taxes through ordinary legislation. Missouri voters approved sports betting through a constitutional amendment. Committee chair Rep. Jeff Myers said that issue would be handled separately.
Chance Hepola, director of government affairs for the Missouri Chamber of Commerce and Industry, also opposed the bill. He warned lawmakers against raising taxes and fees on specific industries to fund selected projects.
💡 TGJ Take
Missouri’s bill is not just a casino fee update. It is a test case for how states may treat gambling revenue if income tax cuts create budget gaps. Operators should watch the two-hour admission fee closely because it adds operational friction, not just higher tax cost. Sportsbooks also face a legal and political risk: if lawmakers can reopen the tax terms after approval through constitutional amendment, market projections built around launch assumptions may need another review.
