Missouri lawmakers are reviewing a proposal that would increase taxes and fees on casinos and sports betting as part of a broader effort to reduce reliance on income tax revenue. House Bill 3533, introduced by Rep. Jeff Knight of Lebanon, has been discussed in a House committee and would apply to the state’s 13 casinos as well as sports wagering platforms.
The legislation targets rates that have remained unchanged since casinos began operating in Missouri in 1994, reflecting a push to update long-standing revenue structures.
Fee Changes And New Tax Measures
One of the central provisions would raise the casino admission fee from $2 to $5.50 and require it to be charged every two hours. The proposal also includes annual adjustments tied to inflation. Casinos currently pay this fee on behalf of customers.
The bill introduces a 1.5 percent remote wagering access fee on sports betting. The first $35 million collected would be directed to the Department of Natural Resources Historic Preservation Revolving Fund. It also proposes a 13 percent additional tax on gambling receipts and a 24 percent additional tax on sports wagering revenue.
An additional measure allocates $15 million in net proceeds from the gaming commission fund to the same preservation fund.
Supporters argue the changes reflect current economic conditions. Rep. Tim Taylor of Bunceton said, “Revenue from lottery and from casinos has all been down, I think maybe currently it’s up slightly, but it’s been woefully inadequate. This is the original fee from way back when, so we haven’t addressed it in a long time.”
Industry Response And Legislative Concerns
Lawmakers also examined how inflation affects the current admission fee. Rep. Barry Hovis of Whitewater noted that adjusting the original $2 fee using the consumer price index would place it at $4.31 today. “Which means (the casinos) are still getting extra money out of it, but we as a state, we haven’t seen as much, so would they be opposed to matching CPI?” Hovis said. “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?”
Industry representatives voiced opposition during the hearing. Mike Winter of the Missouri Gaming Association said the proposal could impose significant financial strain on operators and complicate operations through the bi-hourly fee model.
“We came into Missouri when we built our facilities looking for a stable gambling market, and I think that’s what we’ve got,” he 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.”
Concerns also arose about whether changes to sports wagering taxes require separate approval. Committee chair Rep. Jeff Myers said that issue would be addressed independently.
Chance Hepola of the Missouri Chamber of Commerce and Industry urged caution. “From our perspective, we just want to be careful on raising some of those fees and taxes on specific industries,” he said.
The committee has not taken final action on the proposal.
Source:
“Missouri House committee considers higher casino taxes, fees”, newstribune.com, April 29, 2026
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