New Missouri Gambling Bill Targets Casino Revenue
A fresh Missouri gambling bill would raise money for local services while replacing income tax under the new rules.
Rep. Jeff Knight (R–Lebanon) introduced House Bill 3533 this week, aimed at filling the state coffers with gambling tax revenue. At the same time, the bill would reduce state income tax on earners.
At a Glance:
- Casino taxes would rise under the new House Bill
- HB 3533 aims to pivot away from state income tax
- Tax rise would pay for education and other services
- Rise in admission fees for riverboat casinos to $5.50
- Additional fees on legal sports betting in Missouri
Boosted riverboat casino admission among new taxes
Among the gambling entities hit by the proposed new tax are the state’s riverboat casinos. There are 13 riverboat casinos in the Show-Me State, the most recent of which opened in 2024.
You must pay a small admission fee if you visit any riverboat casino. Under Rep. Knight’s proposals, this would increase from $2 to $5.50.
Additionally, a 1.5% monthly fee on total handle will be imposed on the state’s online sports betting companies. Missouri legalized sports betting in late 2025.
Missouri is in the middle of a drive to slash its state income tax. There’s a desire to increase sales tax to help bring down income taxes. However, opponents argue that this will unfairly hit the poorest in Missouri. The proposed constitutional amendment goes to Missouri voters later this year.
Bill support isn’t universal in Missouri
The Missouri Gaming Commission, naturally, is nonplussed by the thought of even more taxation on its licensees. Plus, a proposed smoking ban for Missouri casinos is being mulled over by senators.
In the most recent reports, the MGC reported net revenue of over $160 million for its 13 casinos. That marked an 8% year-over-year increase.
However, that’s of no comfort to casino operators who see their control being steadily eroded. In February, Video Lottery Terminals (VLT) were declared illegal in a wide-ranging Missouri gambling bill. That, coupled with the smoking ban and this new tax proposal, marks a wider crackdown, operators say.
Missouri sports betting enjoys its biggest month
Missouri’s fledgling sports betting operators took in over $20 million last month, just four months after the state went live. It was the best month for Missouri sportsbooks since the state legalized online sports betting in December.
Total sports betting handle was $329.3 million, with the majority of that coming via regulated online sportsbooks. State tax revenue totaled $2.1 million for the month. It’s those sorts of figures that opponents of the bill to raise the gambling tax will point to in the months ahead.
