Missouri lawmakers moved to revisit the state’s sports betting tax structure shortly after launch, but the effort has stalled with no clear path forward. House Bill 3533, introduced in February 2026, proposed raising taxes on Missouri sportsbook operators and limiting promotional deductions.
Strong Betting Handle, Weak Tax Returns
The push for change comes as Missouri sports betting has delivered strong betting volume, but limited tax revenue. The market launched on December 1, 2025, and quickly generated more than $543 million in wagers in its first full month.
Despite that activity, the state collected just over $500,000 in tax revenue. A key reason is the current structure, which allows operators to deduct promotional spending, including bonus bets, from taxable revenue. Those deductions have significantly reduced what Missouri receives from betting operators.
Missouri’s framework, including the 10% tax rate and deduction rules, was approved by voters, making changes more complex.
What HB 3533 Proposed
House Bill 3533 aimed to address those concerns by raising the tax rate from 10% to 34% and limiting how much promotional spending operators could deduct.
The goal was to increase returns from Missouri betting apps without relying solely on higher betting volume.
However, changing a voter-approved system presents legal and political challenges, which likely contributed to the bill’s lack of progress.
Where the Bill Stands
HB 3533 has not advanced. The bill was pulled from a scheduled hearing and has yet to receive a committee vote, the first step in the legislative process.
With the 2026 session nearing its end, time is running out for any movement. There is currently no clear timeline for when the bill could return or whether similar legislation will be introduced in the near future.
What It Means Moving Forward
For now, Missouri’s tax structure remains unchanged. Operators will continue to be taxed at 10% while maintaining the ability to deduct promotional spending, meaning early revenue trends are likely to continue.
Lawmakers have shown interest in revisiting the issue, but with this bill stalled, any meaningful changes to Missouri sports betting are likely to be pushed to a future session.
