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Missouri lawmakers have backed away from a large sports betting tax increase only months after the state opened legal online wagering. The change keeps the current sportsbook tax rate in place while officials review early market data.
Good to Know
Missouri will not raise online sports betting taxes for now. A House committee stripped the proposed increase from a wider gaming bill on Tuesday, choosing instead to leave sportsbook tax policy alone while the market remains new.
The removed language would have raised the effective sportsbook tax rate from 10% to 34%. That level would have placed Missouri near the top of the tax table among the 39 states with legal sports betting.
Rep. Jeff Myers said lawmakers need more time with the numbers before changing the law. He said during Tuesday’s hearing that he supported removing the sports betting tax hike so the state could better evaluate sports betting data before making more decisions.
The debate comes after Missouri sportsbooks produced a $1.5 billion handle but only $4 million in tax revenue. Handle means the total amount bettors wager, not the amount sportsbooks keep. That gap gave lawmakers a reason to ask questions, but it did not produce enough support for a quick tax increase.
Instead, the committee kept its focus on riverboat casinos. The substitute version of the bill raises the per-admission tax from $2 to $5.50 and also increases licensing fees.
The committee approved the revised measure by a 9-7 vote. The close result showed a split over gambling taxes, with some lawmakers open to higher fees and others wary of raising so-called “sin taxes” too quickly.
Missouri now joins a wider national discussion over sports betting revenue. Several states have looked again at tax rates after legal markets matured, but Missouri lawmakers appear set to wait for more local results before reopening the sportsbook tax debate.