Missouri HB 3533 Targets Sports Betting Tax Loopholes

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Mon Mar 09, 2026, 8:00 am ET

Read Time: 3 minutes

Missouri HB 3533 Targets Sports Betting Tax Loopholes

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Missouri lawmakers are reconsidering the state's sports betting tax framework after introducing House Bill 3533 (HB 3533). This new bill proposes a new structure to increase tax revenue from the newly launched market. 

The measure targets promotional deductions and adds new fees affecting US online sportsbooks operating in the state.

Missouri launched legal sports betting on Dec. 1, 2025, after voters approved a constitutional amendment in 2024. However, early revenue figures from the Missouri gambling market have disappointed state officials.

During December and January, bettors placed roughly $928 million in wagers. Despite that activity, Missouri collected only about $659,120 in tax revenue. The results prompted lawmakers to reconsider whether the current tax structure allows US online sportsbooks to minimize their tax obligations.

What Missouri's HB 3533 Proposes for Sports Betting Taxes

Missouri Representative Jeff Knight introduced HB 3533 in late February to overhaul the state's sports betting tax model. Currently, Missouri taxes sportsbooks at 10% of net gaming revenue. Operators can deduct promotional credits, free bets, and other incentives before calculating taxable income.

HB 3533 would add a 24% tax on adjusted gross receipts, calculated before promotional deductions are applied.

Importantly, the new tax would not replace the existing 10% tax on net revenue. Instead, the measure would create a layered tax structure that significantly increases the financial burden on US online sportsbooks operating in the state.

If enacted, the combined framework would effectively create one of the highest sportsbook tax burdens in the country. The structure also specifically targets revenue before operators can offset their costs with large promotional campaigns.

Supporters argue the change is necessary to ensure the expanding Missouri gambling market delivers meaningful tax revenue.

Missouri's Promo Credit Deductions and Revenue Impact

Promotional spending has played a major role in Missouri's early tax shortfall. During the first two months of legal wagering, sportsbooks distributed nearly $160 million in promotional credits to attract bettors.

These offers helped drive wagering activity but sharply reduced taxable revenue. Under the current rules, operators can deduct the full value of those promotions from their reported profits.

As a result, the state collected less than $700,000 in taxes despite nearly $1 billion in wagers.

HB 3533 attempts to address this issue by applying the proposed 24% tax before promotional deductions are taken. Lawmakers believe this structure would prevent operators from using aggressive promotions to eliminate most of their tax liability.

Additional 1.5% Remote Wagering Access Fee

The bill also introduces a 1.5% remote wagering access fee tied to total betting handle. Unlike the other taxes, this fee would apply to the total monthly volume of bets, not sportsbook revenue.

Retail casinos partnering with US online sportsbooks would pay this fee for access to Missouri's digital betting market.

The provision could add another financial layer to sportsbook partnerships. As a result, casinos may reassess how they structure agreements with mobile betting operators.

Status and Next Steps for HB 3533

HB 3533 is still in the early stages of Missouri's legislative process. The bill received its second reading on March 2, 2026, in the Missouri House. It is currently awaiting assignment to a legislative committee for further review.

Once assigned, the committee will evaluate the proposal and determine whether it should advance to a full House vote.

If the House approves the bill, the Missouri Senate would then consider the measure. Finally, the governor would need to sign the legislation for it to become law.

Lawmakers may move quickly if the proposal gains support. Missouri's legislative session is relatively short and is scheduled to end on May 15, 2026.

The coming weeks will determine whether lawmakers move forward with a tax overhaul that could significantly reshape the economics of US online sportsbooks operating in the Missouri gambling market.

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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