On April 30, 2026, a Missouri House committee began reviewing House Bill 3533, introduced by Republican Representative Jeff Knight, aiming to raise taxes and fees on the gaming sector for the first time since casinos began operating in the state in 1994. Missouri launched sports betting in December 2025 and is already facing a gap between betting volume and actual tax revenue.
The bill outlines some changes; first, it increases the casino admission fee from $2 to $5.50 per two-hour entry, with authority for annual inflation adjustments. Second, it introduces a 1.5% fee on remote sports betting handle, designed to secure revenue even when operators reduce taxable income through promotions. Third, it adds an additional 13% tax on casino adjusted gross revenue (AGR) and up to 24% on sports betting AGR, significantly reshaping the sector’s tax burden.
Executive Director Mike Leara
The current system is governed by the Chapter 313 Revised Statutes of Missouri, under oversight of the Missouri Gaming Commission, led by Executive Director Mike Leara and operating within the Department of Public Safety. The existing framework imposes a 21% tax on AGR, with 90% allocated to the state education fund and 10% to local jurisdictions.
Governor Mike Kehoe
Missouri recorded $543 million in sports betting handles in its first month, but generated only $521,000 in tax revenue, largely due to aggressive promotional deductions. Meanwhile, the state’s 13 casinos contributed approximately $363 million in taxes in 2025, based on an AGR of about $1.91 billion. Under the proposed changes, the state could capture up to $248 million in additional revenue, although the final allocation of those funds remains under discussion.
The proposal demonstrates a change for the casino sector with higher state revenue potential versus tighter operator margins.
The bill must advance through committee, pass votes in both the House and Senate, and ultimately reach Governor Mike Kehoe. With the 2026 World Cup and NFL season approaching, Missouri is moving to ensure that betting growth translates into tangible fiscal returns rather than pure wagering volume.
