Missouri’s gambling scene faces potential changes as House Bill 3533 proposes increased casino taxes and new entry fees. Read on for details.
Key Takeaways
* House Bill 3533 aims to raise casino taxes and introduce new fees to offset state income tax cuts and boost revenue for various state services.
* The bill proposes increasing the casino admission fee to $5.50, applied bi-hourly, and a new 1.5% monthly handle fee for online sports betting.
* Industry representatives warn of substantial financial losses for casinos, citing existing revenue pressures and operational concerns.
Proposed Changes to Missouri’s Gambling Revenue
Rep. Jeff Knight, R-Lebanon, has introduced Missouri House Bill 3533, a legislative effort to adjust the state’s revenue streams by focusing on the gambling sector. The bill proposes raising taxes on casinos to compensate for potential reductions or the elimination of the state income tax, a primary funding source for local government and other state priorities.
Currently, gaming revenues contribute to funding education, veterans’ services, historic preservation, and local governments. This legislative push follows recent underperformance in lottery and casino revenue projections, which has added to the state’s financial strain.
Admission Fee Overhaul
Missouri’s $2 casino admission fee has remained unchanged since riverboat casinos were introduced in 1994. Under House Bill 3533, this fee would be increased to $5.50. A significant change is the proposed application of this fee every two hours a patron remains in the gambling area.
Beginning in fiscal year 2027, the Missouri Gaming Commission would implement annual adjustments to this fee. These adjustments would be tied to the Midwest Region’s Consumer Price Index (CPI) to keep pace with inflation and are slated to continue for at least a decade.
New Structure for Online Sports Betting
For online or remote sports betting conducted through casino licensees, the bill introduces a new monthly fee. This fee would be equivalent to 1.5% of total wagers (handle) and would replace the standard admission fee for these digital activities. Revenue generated from this new charge would be directed to the Gaming Commission Fund.
Supporters of the bill argue these updates are necessary to reflect current inflation rates and the evolving landscape of the gaming industry, particularly the growth of online sports betting.
Industry Concerns and Opposition
The proposed tax and fee increases have drawn criticism from various industry stakeholders. Mike Winter, a lobbyist representing the Missouri Gaming Association, has warned that the bill’s passage could lead to over half a billion dollars in losses for his clients.
Winter highlighted that casinos are already contending with declining revenues, partly attributed to the proliferation of slot machines in convenience stores and gas stations. He also pointed out that the proposed shift to a bi-hourly fee structure could impact not only casino revenues but also day-to-day operational logistics.
Furthermore, Winter expressed concern that raising taxes on sports betting might not be achievable solely through legislation, noting that its initial approval involved a constitutional amendment.
Chance Hepola, director of government affairs for the Missouri Chamber of Commerce and Industry, also commented on the proposal. Hepola emphasized the need for caution when imposing higher fees and taxes on specific industries, advocating against policies that could inadvertently favor certain businesses over others.
Broader Regulatory Context and Legislative Outlook
House Bill 3533 aligns with other recent actions by Missouri to expand its oversight of the gambling sector. For instance, Attorney General Catherine Hanaway recently announced efforts to address video lottery terminals (VLTs), which are set to become illegal under a new law effective February 2026.
Despite the urgency expressed by some, the legislative path for House Bill 3533 appears to be lengthy. Other gambling-related legislation in Missouri, such as House Bill 1618 concerning a smoking ban in casinos, has faced prolonged discussions, indicating a slow pace for such reforms.
Other Missouri Gambling News
In unrelated news, a Powerball player in Missouri recently secured a $1 million prize from the drawing held on April 20.
I remember the first time I saw Kai Tak, Hong Kong’s gambling city, I thought I was in a fairy tale. All the lights blinking, the music and the monumental buildings, what 9-year-old wouldn’t think they’ve come to a magical place? It was my father who brought me, dragging me along and when inside I was hit by the smell of frying duck. As soon as I hit 21 I returned to Kai Tak, A bit nervous to see if my mind had embellished the memory, but it hadn’t. Kai Tak was still a magical place. I decided I wanted to spend as much time as I could at this place, so I did.
