Missouri Introduces House Bill to Raise Casino Taxes and Entry Fees
Proposal to Increase Gambling Revenue in Missouri
Missouri’s House Bill 3533, introduced by Representative Jeff Knight from Lebanon, proposes increasing taxes and fees on casinos to offset potential reductions in income tax revenue. This bill reflects ongoing discussions about reducing or possibly eliminating the state income tax, which is a major revenue source for Missouri.
Current Fees and Proposed Changes
Since the introduction of riverboat casinos in 1994, the state has maintained a $2 admission fee for casino visitors. The proposed legislation seeks to raise this fee to $5.50 and implement it every two hours for individuals staying in the gaming areas. Starting in fiscal year 2027, the Missouri Gaming Commission would be tasked with adjusting this fee annually, based on inflation measured by the Midwest Region’s Consumer Price Index. These annual adjustments would continue for at least ten years.
Additionally, the bill introduces a new 1.5% monthly fee on total wagers placed on online or remote sports betting through licensed casino operators. This fee would replace the current admission fee for these platforms, and the generated funds would be allocated to the Gaming Commission Fund.
Rationale Behind the Bill
Supporters of the bill argue that raising these fees is necessary to modernize the state’s gaming tax policies in line with inflation and the growth of online sports betting. This initiative also demonstrates Missouri’s intent to increase regulatory oversight of its gambling industry, in line with recent moves such as stricter enforcement against illegal video lottery terminals set to take effect in 2026.
Opposition and Concerns
The bill has met resistance from several parties. Mike Winter, a lobbyist for the Missouri Gaming Association, warns that these changes could cost casinos over half a billion dollars, especially as they already face revenue challenges due to the expansion of slot machines in convenience stores and gas stations. He expressed concerns that the proposed bi-hourly fee could adversely affect casino operations and revenues. Winter also highlighted potential legal challenges to raising sports betting taxes given they were initially approved through a constitutional amendment.
Chance Hepola, director of government affairs for the Missouri Chamber of Commerce and Industry, urges caution when imposing higher taxes and fees, stressing the importance of fair policies that do not disadvantage specific industries.
Legislative Outlook and Additional Context
Given the pace of previous gambling legislation in Missouri, House Bill 3533 may face a lengthy process before potentially becoming law. Similar bills, such as House Bill 1618 proposing a smoking ban in casinos, have experienced extended discussions without resolution.
On a related note, Missouri recently celebrated a Powerball winner who secured a $1 million prize in the April 20 drawing, marking a notable highlight in the state’s lottery history.
