Missouri HB 3533 Stalls Amid Sportsbook Pushback

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Wed Apr 22, 2026, 7:00 am ET

Read Time: 3 minutes

Missouri HB 3533 Stalls Amid Sportsbook Pushback

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Missouri lawmakers have stalled House Bill 3533 (HB 3533) amid rising industry resistance, structural tax concerns, and political caution following the state's recent sports betting launch. The proposal seeks to adjust how taxable revenue is calculated for US online sportsbooks operating in Missouri. 

Meanwhile, debate continues across Missouri gambling policy as officials reassess early revenue performance and regulatory limits.

Why Missouri Lawmakers Stalled HB 3533 Discussions

Lawmakers remain divided on how to proceed with HB 3533. Some support raising the sports betting tax rate. Others argue the state should first fix structural flaws in the current framework. As a result, negotiations have slowed significantly.

However, a major political constraint shapes the discussion. Missouri legalized sports betting through Amendment 2, a constitutional measure approved by voters. That amendment established a 10% tax rate. Consequently, some lawmakers hesitate to alter a structure voters recently approved.

This "ballot box" issue creates political risk. Officials worry that changing the rules so soon after launch could appear like a bait-and-switch. Both operators and voters could view rapid tax changes as inconsistent with the original approval. Therefore, lawmakers tread carefully when considering adjustments.

At the same time, industry influence has also played a major role. DraftKings and FanDuel spent tens of millions of dollars supporting Amendment 2. Their investment helped secure voter approval for legalization.

Since then, both companies have maintained a strong lobbying presence in Jefferson City. Their influence has contributed to the stalled status of HB 3533. Lawmakers face pressure from operators who argue that structural changes could undermine a newly established market. As a result, momentum for reform has weakened.

In addition, policymakers continue balancing competing goals. They want higher revenue from Missouri gambling activity. However, they also want to preserve a competitive environment for US online sportsbooks. This tension has further complicated progress.

Missouri's Current Sports Getting Landscape

Missouri taxes sports betting at 10% of adjusted gross revenue under Amendment 2. Despite strong wagering activity, tax collections have fallen short of expectations.

Lawmakers expected stronger fiscal returns. However, early results have disappointed officials. Betting volumes remain high, but state revenue has not matched projections.

One key factor drives this gap. Sportsbooks can deduct promotional credits, commonly known as free bets. These deductions significantly reduce taxable revenue. As a result, operators report lower adjusted earnings for tax purposes.

Moreover, promotional spending remains aggressive in competitive markets. US online sportsbooks rely heavily on bonuses to attract customers. While effective for growth, these incentives reduce taxable income. Therefore, Missouri collects less revenue than anticipated.

HB 3533 Aims to Close Key Tax Loopholes

HB 3533, sponsored by Jeff Knight, seeks to address these structural issues. The bill proposes limits on how sportsbooks deduct promotional credits. It also targets accounting practices that allow operators to offset taxable income over time.

These changes matter in Missouri's current environment. By tightening deduction rules, the state could stabilize revenue without raising the 10% rate. Importantly, the bill focuses on redefining taxable revenue rather than increasing taxes directly.

However, industry stakeholders continue to push back. Operators argue that restricting deductions could weaken promotional strategies and reduce competitiveness. Consequently, resistance from major sportsbooks has slowed legislative progress.

What Comes Next for Missouri Sports Betting Legislation?

Lawmakers now face several options. They could revise HB 3533 to reduce industry concerns. Alternatively, they may revisit the idea of a direct tax increase.

A hybrid approach also remains possible. Missouri could adjust deduction rules while keeping the 10% rate intact. This may offer a middle ground between revenue growth and market stability.

For now, uncertainty persists. The combination of voter-approved tax structure, strong industry lobbying, and revenue shortfalls continues to shape the debate. 

As a result, future changes to Missouri gambling policy and US online sportsbooks regulation remain unresolved.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

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