The Missouri sports betting tax rate has been a hot topic of late. At just 10%, it will be one of the lowest such figures in the country when the industry launches on December 1, 2025.
That number isn’t permanent, and we’ve seen several states change their tax rates in the past year. However, only four states with legal sports betting have lower tax rates on their mobile/online industries than Missouri’s 10% rake.
Missouri sports betting tax rate part of Amendment 2
The 10% tax rate was a specific part of the language of Amendment 2, which narrowly passed at the ballot box last November. The group behind the Missouri sports betting initiative, Winning for Missouri Education, stressed that tax revenue would benefit both in-state schools and the state’s compulsive gambling fund.
Iowa and Nevada’s shared tax rate of 6.75% is the lowest nationally. They’re followed by Michigan, at 8.4%, and Indiana, at 9.5%. Missouri sports betting joins seven other states, including neighboring Kansas, with its 10% clip.
One of the biggest critics of the Missouri sports betting tax rate was then-Sen. Denny Hoskins. A longtime opponent of sports betting bills in the Show-Me State, Hoskins voiced his concerns at a press conference last year.
“I’ve consistently said that the ballot language they are using, I don’t believe, best serves the people of Missouri,” he said at the time. “The tax rate is very low, the fees are very low, and there’s not enough money in there for problem compulsive gambling, which is going to be caused by a legalization of sports betting here in the state.”
Current thoughts on the 10% tax rate
Hoskins is now Missouri’s Secretary of State. When approached by Winners and Whiners earlier this week, spokesperson Rachael Dunn issued the following statement:
“Secretary Hoskins does not have a policy-making role regarding the constitutional sports betting program approved by Missouri voters. His office’s role is administrative only, specifically in reviewing and finalizing any associated rules through the established rulemaking process under Missouri law.
“The framework for the program, including the tax rate, was set through the constitutional amendment approved by voters. While Secretary Hoskins previously shared his views as a legislator, as secretary of state, he does not hold a position on the program’s structure.
“We wish the Missouri Gaming Commission the very best as they move forward with implementing the new program.”
Missouri Gaming Commission PR Coordinator Elizabeth Hoffman, meanwhile, reaffirmed the organization’s role in the process.
“The Missouri Gaming Commission did not write the amendment,” she said. “The Missouri Gaming Commission will regulate sports wagering due to Amendment 2 being approved by the voters in Missouri.”
Could the Missouri sports betting tax rate change?
Judging by activities in other states, the 10% Missouri sports betting tax rate may not be permanent. Several states have opted to revisit their tax rates over the past year. A couple of industries have seen those numbers increase significantly.
Two of those states have launched sports betting fairly recently. Ohio went live with a 10% tax rate on New Year’s Day in 2023. Gov. Mike DeWine doubled it to 20% later that year before attempting to double it again in 2025 as part of the state’s budget process. That initiative was voted down by state lawmakers.
North Carolina, meanwhile, launched with an 18% tax rate in March of 2024. This year’s Senate budget, though, includes doubling that figure to 36%. Such an increase would make that the fifth-largest fixed tax rate nationally.
