Missouri Legislators Consider Increased Taxes on Gambling and Betting

(AsiaGameHub) –   Missouri legislators are considering a bill on gambling taxes that proposes increasing casino fees, introducing new charges for remote betting, and generating additional income from sports betting revenues.

Good to Know

• HB 3533 proposes increasing the casino admission fee from $2 to $5.50.
• The legislation would impose a 13% tax on gambling revenues and a 24% tax on sports betting receipts.
• Casino operators claim the proposal could result in losses exceeding $500 million for the industry.

Operators Warn Missouri Could Lose Ground

Sponsored by Rep. Jeff Knight, R-Lebanon, House Bill 3533 focuses on Missouri’s 13 casinos and sports betting platforms. The discussion occurs as legislators explore fee-based revenue sources and debate how the state might substitute income tax revenue.

Casino operators currently cover a $2 admission fee per customer. The bill would increase that fee to $5.50, charge it every two hours, and link future hikes to inflation. Rep. Barry Hovis, R-Whitewater, noted that adjusting the original 1994 fee for inflation would set it at $4.31 currently.

“(The casinos) are still getting extra money out of it, but we as a state haven’t seen as much, so would they be opposed to matching CPI?” Hovis asked. “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?”

The legislation also introduces a 1.5% “remote wagering access fee.” The initial $35 million collected from this fee would be allocated to the Department of Natural Resources Historic Preservation Revolving Fund. An additional $15 million from the gaming commission fund would also be directed to that fund.

Rep. Tim Taylor, R-Bunceton, supported the bill, citing established gambling revenue sources that he believes have failed to meet state demands. “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 said in support of the bill. “This is the original fee from way back when, so we haven’t addressed it in a long time.”

The casino industry expressed strong opposition. Mike Winter, a lobbyist for the Missouri Gaming Association, stated the bill could cost the casinos he represents over $500 million. He also mentioned that casinos are already facing revenue competition from slot machines in convenience stores and gas stations.

Winter linked his caution to market stability, beyond just the financial impact. “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.”

Sports betting presents a further challenge. HB 3533 would implement an additional 24% tax on sports betting receipts, plus a 13% tax on gambling revenues. Winter raised doubts about whether legislators can alter sports betting taxes via a standard bill, as voters approved sports wagering through a constitutional amendment. Committee chair Rep. Jeff Myers, R-Warrenton, indicated that lawmakers would address that concern separately.

Chance Hepola, director of government affairs for the Missouri Chamber of Commerce and Industry, also spoke against HB 3533. “From our perspective, we just want to be careful about raising some of those fees and taxes on specific industries,” Hepola said.