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(AsiaGameHub) – Missouri legislators have decided against a significant increase in the sports betting tax, just months after the state launched legal online wagering. This decision maintains the existing sportsbook tax rate as officials analyze initial market performance.
Good to Know
- Legal sports betting in Missouri began slightly more than five months ago.
- A House committee eliminated provisions that would have raised the sportsbook tax rate from 10% to 34%.
- The identical bill still increases the riverboat casino admission tax from $2 to $5.50.
Legislators Prioritize More Sports Betting Data First
For the time being, Missouri will not increase online sports betting taxes. On Tuesday, a House committee removed the proposed hike from a broader gaming bill, opting to keep sportsbook tax policy unchanged given the market’s nascent stage.
The discarded provisions would have elevated the effective sportsbook tax rate from 10% to 34%. Such a rate would have positioned Missouri among the highest-taxing states out of the 39 jurisdictions where sports betting is legal.
Representative Jeff Myers stated that legislators require additional time to review the figures before amending the law. During Tuesday’s hearing, he expressed support for eliminating the sports betting tax increase, allowing the state to more thoroughly assess sports betting data prior to making further determinations.
This discussion follows Missouri sportsbooks generating a $1.5 billion handle, yet yielding only $4 million in tax revenue. ‘Handle’ refers to the total sum wagered by bettors, not the amount retained by sportsbooks. This disparity prompted lawmakers to raise inquiries, but it failed to garner sufficient backing for an immediate tax hike.
Instead, the committee maintained its concentration on riverboat casinos. The revised iteration of the bill elevates the per-admission tax from $2 to $5.50 and also boosts licensing fees.
The committee endorsed the amended proposal with a 9-7 vote. This narrow outcome indicated a division regarding gambling taxes, with some legislators amenable to increased fees and others cautious about rapidly increasing what are termed ‘sin taxes’.
Missouri now participates in a broader national conversation concerning sports betting revenue. While several states have re-examined tax rates once their legal markets matured, Missouri legislators seem inclined to await further local outcomes before revisiting the sportsbook tax discussion.
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