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Missouri lawmakers are reviewing a proposal that would raise taxes and fees on casinos and sports betting operators as the state considers ways to reduce its reliance on income tax revenue.
House Bill 3533, sponsored by Rep. Jeff Knight, R-Lebanon, would affect Missouri’s 13 casinos and licensed sports betting platforms. The bill targets a fee structure that has largely remained unchanged since casino gambling began in the state in 1994, while also creating new charges tied to the recently launched sports betting market.
The proposal comes as state lawmakers continue discussing a broader shift away from income tax. Supporters of the casino tax bill argue that gambling-related fees have not kept pace with inflation or current fiscal needs, while industry representatives warn that the changes could place a heavy financial burden on operators.
Casino Fees Could Rise Sharply
One of the most significant changes in HB 3533 would increase the casino admission fee from $2 to $5.50. The bill would also require the fee to be charged every two hours, rather than once per visit. The fee would then be adjusted annually for inflation.
Casinos currently pay the admission fee on behalf of customers. Supporters of the bill say the original $2 figure has lost value over time. Rep. Barry Hovis, R-Whitewater, noted that adjusting the fee for inflation would bring it to about $4.31 today.
Rep. Tim Taylor, R-Bunceton, supported revisiting the long-standing fee structure. “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. “This is the original fee from way back when, so we haven’t addressed it in a long time.”
The bill would also direct $15 million in net proceeds from the gaming commission fund to the Department of Natural Resources Historic Preservation Revolving Fund.
Sports Betting Also Faces New Charges
HB 3533 would create a 1.5 percent “remote wagering access fee” for online or remote wagering. The first $35 million collected from that fee would go to the Department of Natural Resources Historic Preservation Revolving Fund.
The measure also proposes an additional 13 percent tax on gambling receipts and a 24 percent additional tax on sports wagering receipts. These would come on top of existing tax obligations.
Missouri’s sports betting market launched on December 1, 2025. Operators handled nearly $1 billion in wagers during the first two months, but the state collected less than $700,000 in tax revenue during that period. Promotional deductions have reduced taxable revenue, while the current sports betting tax rate stands at 10 percent.
HB 3533 would change how sports betting revenue is taxed by applying the tax before promotional deductions. Knight has said the bill could generate an estimated $470 million, though industry representatives dispute that projection.
Mike Winter, a lobbyist for the Missouri Gaming Association, opposed the bill and said the proposal could cost casinos more than $500 million. He also warned that Missouri operators already face pressure from slot machines in convenience stores and gas stations.
“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 can adjust sports betting taxes through ordinary legislation, since voters approved sports betting through a constitutional amendment. Committee chair Rep. Jeff Myers, R-Warrenton, said that issue would be handled separately.
Broader Tax Debate Shapes the Proposal
The casino tax proposal is moving against the backdrop of a larger effort to eliminate or reduce Missouri’s income tax. A proposed constitutional amendment linked to that effort has advanced through the Legislature and could reach voters later this year.
Income tax represents a major share of Missouri’s general revenue. If lawmakers move forward with a phaseout, the state would need alternative funding sources to cover a potential multibillion-dollar gap.
Rep. Hovis connected the casino fee discussion to that broader fiscal shift. “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?” he asked.
The Missouri Chamber of Commerce and Industry also testified against the bill. Chance Hepola, the group’s director of government affairs, urged caution when singling out specific sectors for higher taxes.
“From our perspective, we just want to be careful on raising some of those fees and taxes on specific industries,” Hepola said, as reported by the Missouri Tribune. “We want to be mindful of picking winners and losers when it comes to certain things that are funding specific projects.”
The bill has received committee attention but has not advanced to a full House vote. With the legislative session approaching its deadline, its immediate future remains uncertain. However, the proposal signals that casinos and sports betting may remain part of Missouri’s tax debate as lawmakers search for replacement revenue.