A Missouri House committee is evaluating a proposed bill to increase casino entry fees, introduce new wagering charges, and enhance tax rates on gambling and sports betting earnings as legislators search for alternatives to replace revenue if the state transitions away from income tax.
House Bill 3533, introduced by Rep. Jeff Knight, R-Lebanon, would impact Missouri’s 13 casinos and sports betting platforms. The aim is to modernize casino taxes and fees, which have not been revised since casinos were launched in the state in 1994.
The initiative proposes raising the casino entry fee from $2 to $5.50, making it applicable every two hours, and including annual inflation adjustments. At present, casinos pay this fee for their customers. Rep. Barry Hovis, R-Whitewater, indicated that adjusting solely for the consumer price index would raise the original $2 fee to $4.31 today.
“While casinos benefit financially, the state hasn’t seen a proportionate gain. Would they resist aligning with CPI adjustments?” Hovis questioned. “Our goal is to eliminate the income tax and switch to a fee-based framework. How can we sufficiently compensate for these gaps?”
The bill also proposes a 13% additional tax on gambling earnings and a 24% additional tax on sports betting profits. Furthermore, it introduces a 1.5% “remote wagering access fee,” with the initial $35 million collected allocated to the Department of Natural Resources Historic Preservation Revolving Fund.
An additional $15 million from the gaming commission fund would be designated for the same purpose. Rep. Tim Taylor, R-Bunceton, expressed support for the legislation, citing insufficient revenue from the casino and lottery sectors.
“Revenue from both the lottery and casinos has declined; although there has been a slight increase now, it’s still not enough,” Taylor, R-Bunceton, mentioned. “This is the original fee structure, and we haven’t revisited it for a long time.”
The casino industry has expressed opposition to the proposal. Mike Winter, a lobbyist representing the Missouri Gaming Association, stated that the bill could cost his clients over half a billion dollars during a period when they are already experiencing revenue losses due to competition from convenience store and gas station slot machines. He additionally noted that the two-hour admission fee structure would significantly impact both operational efficiency and revenue.
“When we entered the Missouri market, we anticipated a stable gaming environment, and we believe we currently have that,” Winter remarked. “However, with bills like this in play, Missouri might become less appealing to operators compared to more favorable markets.“
Winter cautioned that such proposals could diminish Missouri’s attractiveness for casino operators. He also raised concerns about whether increases in sports betting taxes could be effectively implemented through legislation alone, given that sports betting was approved by constitutional amendment.
Committee chair Rep. Jeff Myers, R-Warrenton, indicated that these matters would be addressed separately. Chance Hepola, director of government relations for the Missouri Chamber of Commerce and Industry, also voiced opposition to the bill.
“From our standpoint, we want to be cautious about increasing fees and taxes on specific industries,” Hepola stated.