Missouri legislators are exploring a significant overhaul of the state tax structure by increasing levies on the gambling industry
The Missouri House is currently reviewing House Bill 3533, a proposal that seeks to generate substantial state revenue through increased casino taxes and higher admission fees. Sponsored by Rep. Jeff Knight, the legislation targets a fee structure that has remained stagnant since the inception of Missouri gaming in 1994.
The primary objective is to shift the state away from a traditional income tax model toward a fee-based system. This adjustment would impact all 13 operating casinos in the state along with various sports betting platforms.
The proposed changes include raising the standard admission fee from $2 to $5.50 and requiring this charge every two hours. Additionally, the bill introduces a new 1.5% fee for remote wagering access. Legislators intend to utilize the first $35 million collected from this specific fee for the Department of Natural Resources.
Further financial impacts include a 13% tax on gambling receipts and a 24% tax on sports wagering revenue. Lawmakers noted that if the original $2 fee were simply adjusted for inflation today, it would already stand at $4.31.
Industry representatives have voiced strong opposition to the plan. Mike Winter, representing the Missouri Gaming Association, testified that the collective changes could cost the industry more than $500 million. He argued that casinos are already struggling with revenue losses due to unregulated slot machines in convenience stores.
Furthermore, there are legal concerns regarding whether tax increases on sports betting can be passed through simple legislation rather than a constitutional amendment. Despite these objections, supporters believe the industry must contribute more to make up for the planned reduction in state income taxes.
This legislative move represents a pivot toward long term fiscal sustainability through specialized industry fees.
