Missouri Sports Betting Tax Increase Denied


Published on: May 6, 2026, 09:49h. 

Updated on: May 6, 2026, 09:50h.

  • The 10% sports betting tax on Missouri’s gross revenue remains unchanged
  • A new proposal suggested increasing tax on sportsbooks to 34%
  • In other Missouri gaming updates, the casino smoking ban proposal faces hurdles

Missouri sportsbooks can relax following the withdrawal of a proposed bill aimed at significantly increasing the state’s share of their gross earnings.

Missouri sports betting casino smoke
An evening view of the St. Louis skyline and the Gateway Arch from September 2018. The proposed tax increase on Missouri sports betting has been halted. Efforts to eliminate smoking in casinos face significant resistance. (Image: Shutterstock)

The Missouri House Bill 3533 aimed to dramatically raise the tax on sports betting gross receipts, which is the portion retained by sportsbooks after settling winning bets. HB3533 sought to increase the state tax from the current 10% to 34%.

On Tuesday, the Missouri Crime and Public Safety Committee voted 9-7 to advance HB3533, which includes various gaming provisions, but the proposal to raise the sports betting tax was removed due to concerns about the General Assembly’s authority to alter a tax established by a statewide voter referendum held in November 2024.

Amendment 2, which barely passed with a 50.05% majority, specifically inquired whether voters wanted to modify Missouri’s Constitution to permit both retail and online sports betting, contingent upon a “10% wagering tax on revenues” allocated to education.

The revised HB3533 continues to propose an increase in the riverboat admission fee from $2 to $5.50.

Missouri Casino Smoking 

Players and casino staff hoping for smoke-free environments may find their expectations unmet in 2026.

House Bill 1618 was introduced in January by a bipartisan coalition of seven state representatives, including Reps. Bruce Sassmann (R-Montgomery), Terri Violet (R-St. Peters), Tricia Byrnes (R-Wentzville), Adrian Plank (D-Columbia), Anthony Ealy (D-Grandview), Gregg Bush (D-Columbia), and Michael Burton (D-Lakeshire). The bill aims to modify the Missouri Clean Indoor Air Law of 1993 by removing exemptions that allow smoking in casinos.

Currently, the law permits gaming facilities to designate up to 30% of their gaming area for tobacco consumption. HB1618 seeks to abolish this indoor smoking allowance.

However, after two readings on the House floor in January, the casino smoking ban measure has stalled. It is not on the House agenda, and no hearing has been scheduled to discuss it further. Additionally, the text has yet to be assigned to a House committee for review.

The Missouri legislature plans to adjourn for 2026 next Friday, May 15.

Challenges of Implementing Smoking Bans

While smoking rates in the United States are on the decline, state legislators remain hesitant to revisit smoking regulations in order to close loopholes that permit indoor smoking in casinos. Advocates for anti-smoking legislation have urged lawmakers in several states, including Missouri, New Jersey, Rhode Island, Pennsylvania, Virginia, Kansas, Nevada, and Michigan, to take action, but with little success.

Casino representatives argue that imposing smoking bans could negatively impact gaming revenues, as smokers might seek alternative venues where they can gamble while smoking.

According to the American Lung Association, less than 12% of adults are current smokers, a significant decrease from 42% in 1965 and 15% a decade ago. A study conducted in 2008 at the University of Nevada, Reno, revealed that the percentage of gamblers who smoke aligns closely with the national smoking rate.



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