(AsiaGameHub) –   Authored by Rep. Jeff Knight, R-Lebanon, Missouri’s House Bill 3533 aims to shift away from the state income tax by raising casino taxes to offset lost revenue.

Bill Seeks to Increase Revenue from Gambling

This legislation comes as Missouri faces broader debates over scaling back or potentially eliminating the state income tax, a critical source of revenue for local government. At the same time, gaming proceeds fund education, veteran services, historic preservation, local governments, and other state priorities. Recent shortfalls in lottery and casino revenue forecasts have further added to financial strain.

Missouri’s $2 admission fee and its core casino tax framework have remained unchanged since riverboat casinos were first introduced in 1994. Under the new proposal, the fee would be raised to $5.50 and charged every two hours that a patron stays in the gambling area. Starting in fiscal year 2027, the Missouri Gaming Commission would adjust the fee annually to keep pace with inflation using the Midwest Region’s Consumer Price Index (CPI), with these adjustments remaining in place for at least a decade.

Additionally, a new monthly fee equal to 1.5% of total wagers (handle) would replace the standard admission fee for online or remote sports betting offered by casino licensees. The revenue generated would be deposited into the Gaming Commission Fund.

Supporters argue the bill would update these policies to account for inflation and the evolving gaming industry, including the growth of online sports betting.

The bill could also be viewed as another recent step by Missouri to expand its oversight of the gambling sector. Another demonstration of the state’s commitment to further regulating the industry can be seen in Attorney General Catherine Hanaway’s recent announcement to target video lottery terminals (VLTs), which will be made illegal under a new law taking effect in February 2026.

Some Are Against the New Proposition

Unsurprisingly, any legislation proposing tax increases will have its share of opponents. Mike Winter, a lobbyist representing the Missouri Gaming Association, is one such critic. He warned that if the bill passes, his clients could face losses of more than half a billion dollars. He noted that casinos are already dealing with declining revenues due to the widespread availability 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 just casino revenues, but daily operations as well. Additionally, Winter expressed concern that raising taxes on sports betting may not be achievable through legislation alone, as the sport was originally approved via a constitutional amendment.

Chance Hepola, director of government affairs for the Missouri Chamber of Commerce and Industry, also spoke out against the proposal. She noted that caution is warranted when increasing fees and taxes on specific industries, emphasizing the importance of avoiding policies that arbitrarily pick winners and losers.

All told, House Bill 3533 is likely still far from being fully enacted into law, given the slow pace at which other gambling-related legislation has moved through Missouri’s government. One notable sticking point is the state’s proposed casino smoking ban, House Bill 1618, which has been tied up in debate for months now.

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