Missouri House Bill Seeks to Increase Casino Taxes and Entry Fees

Sponsored by Rep. Jeff Knight, R-Lebanon, Missouri’s House Bill 3533 seeks to shift away from income tax by raising taxes on casinos to make up for the difference in revenue.

Bill Seeks to Increase Revenue from Gambling

The bill comes amid wider debates in Missouri about cutting back or potentially eliminating the state income tax, a key source of revenue for the local government. At the same time, gaming revenues help fund education, veterans’ services, historic preservation, local governments, and other priorities. Recent underperformance in lottery and casino revenue projections, however, has added to financial strain.

Missouri’s $2 admission fee and its core casino tax framework have stayed the same since riverboat casinos were introduced way back in 1994. Under the new proposal, the fee would be raised to $5.50 and would be applied every two hours a person remains in the gambling area. Beginning in fiscal year 2027, the Missouri Gaming Commission would increase it annually to keep pace with inflation, using the Midwest Region’s Consumer Price Index (CPI), with these adjustments continuing for at least a decade.

In addition, a new monthly fee equal to 1.5% of total wagers (handle) would take the place of the standard admission fee for online or remote sports betting conducted through casino licensees. The revenue generated would be directed to the Gaming Commission Fund.

Supporters argue the bill would update these policies to reflect inflation and the evolution of the gaming industry, including the rise of online sports betting.

The bill could also be seen as another measure that Missouri has taken in recent times to broaden its control over the gambling scene. Another act signifying the state’s commitment to further regulating the industry could be seen in the recent announcement by Attorney General Catherine Hanaway to go after video lottery terminals (VLTs), which have become illegal in a new law from February 2026.

Some Are Against the New Proposition

Naturally, any law that proposes an increase in taxes has its fair share of opponents. One of them is Mike Winter, a lobbyist representing the Missouri Gaming Association. He warned that its passage could cost his clients more than half a billion dollars. He noted that casinos are already dealing with revenue declines due to the spread 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 day-to-day operations as well. Additionally, Winter expressed concern that raising taxes on sports betting might not be achievable through legislation alone, since it was originally approved through a constitutional amendment.

Chance Hepola, director of government affairs for the Missouri Chamber of Commerce and Industry, also commented against the proposal. She said there is a need for caution when increasing fees and taxes on particular industries, emphasizing the importance of avoiding policies that effectively pick winners and losers.

In any case, the House Bill 3533 is likely a long way away from being fully written into law, if we look at the slow speed at which other gambling-related legilsations have been handled in Missouri. One issue is the state’s proposed smoking ban in casinos, House Bill 1618, which has been stuck in discussion for months now.

In other gambling news from Missouri, A Powerball player has become the state’s latest millionaire after winning $1 million from the drawing that took place on April 20.