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Missouri lawmakers are reviewing a gambling tax bill that would raise casino fees, add new charges for remote wagering, and pull more revenue from sports betting receipts.
Good to Know
House Bill 3533, sponsored by Rep. Jeff Knight, R-Lebanon, targets the 13 casinos in Missouri and sports betting platforms. The debate comes as lawmakers look at fee-based revenue while discussing how Missouri could replace income tax revenue.
Casino companies already pay the current $2 admission fee for customers. HB 3533 would raise that charge to $5.50, apply it every two hours, and tie future increases to inflation. Rep. Barry Hovis, R-Whitewater, said a basic consumer price index adjustment would put the original 1994 fee at $4.31 today.
“(The casinos) are still getting extra money out of it, but we as a state haven’t seen as much, so would they be opposed to matching CPI?” Hovis asked. “We’re looking to get rid of the income tax and shift to a fee-based structure. How do we make up (for) those differences when they start looking at making sure that we’re keeping up our fees?”
The bill also includes a 1.5% “remote wagering access fee.” The first $35 million from that fee would go to the Department of Natural Resources Historic Preservation Revolving Fund. Another $15 million from the gaming commission fund would also go to the same fund.
Rep. Tim Taylor, R-Bunceton, backed the proposal by pointing to older gambling revenue streams that, in his view, have not kept up with state needs. “Revenue from lottery and from casinos has all been down, I think maybe currently it’s up slightly, but it’s been woefully inadequate,” Taylor said in support of the bill. “This is the original fee from way back when, so we haven’t addressed it in a long time.”
The casino industry pushed back hard. Mike Winter, a lobbyist with the Missouri Gaming Association, said the bill would cost his clients more than $500 million. He also said casinos already lose revenue to slot machines in convenience stores and gas stations.
Winter tied his warning to market stability, not only tax costs. “We came into Missouri when we built our facilities looking for a stable gambling market, and I think that’s what we’ve got,” Winter said. “But when you have bills like this … there may be more favorable markets out there than what this bill would allow Missouri to be.”
Sports betting adds another complication. HB 3533 would place an extra 24% tax on sports wagering receipts, along with a 13% added tax on gambling receipts. Winter questioned whether lawmakers can change sports betting taxes through a regular bill because voters authorized sports wagering through a constitutional amendment. Committee chair Rep. Jeff Myers, R-Warrenton, said lawmakers would handle that issue separately.
Chance Hepola, director of government affairs for the Missouri Chamber of Commerce and Industry, also testified against HB 3533. “From our perspective, we just want to be careful about raising some of those fees and taxes on specific industries,” Hepola said.