Wagering Tax

PURPOSE: This rule establishes standards for the wagering tax. (1) For the purposes of this rule, “wagering tax” means the tax assessment due pursuant to Article III, Section 39(g), of the Missouri Constitution. Each Retail and Mobile licensee is subject to a tax liability assessment. Wagering tax shall be calculated on a cash basis, meaning wagers shall be reported when received by the licensee and deductions for winning wagers shall only be reported when the patron has been paid or when funds have been remitted to the Gaming Commission Fund in accordance with the rules. (2) Wagering taxes shall be paid via an electronic funds transfer system employing an Automated Clearing House Debit method (ACH-Debit). Each Retail and Mobile licensee shall maintain an account with sufficient funds to pay, in a timely fashion, all tax liabilities due. The account shall be maintained at a financial institution capable of making electronic funds transfer payments to the state. (3) The commission will provide a computer program for the input of tax calculation information for the monthly sports wagering tax remittal. Each Retail and Mobile licensee shall enter the required data for the calculation of the tax liability for each monthly reporting period by the due date. (4) The monthly sports wagering tax remittal shall be submitted to the commission no later than 12:00 noon Central time on the due date. Wagering tax payments shall be transferred electronically to the commission’s designated financial institution no later than 12:00 noon Central time on the due date. For purposes of tax schedules and tax payments, the due date shall be the fifteenth day of the month following the calendar month in which the adjusted gross revenue was received and the wagering tax obligation was accrued. The tax payment shall be remitted by the due date regardless of whether or not the fifteenth day falls on a banking day. (5) The wagering tax imposed on the Retail or Mobile licensee shall be based on adjusted gross revenue from sports wagering. Adjusted gross revenue for a given month equals the total value of all cash and cash equivalents received by the licensee for sports wagers minus the total of— (A) All cash and cash equivalents paid out as winnings to sports wagering patrons; (B) The actual cost paid by a licensee for anything of value provided to and redeemed by patrons, including merchandise or services distributed to sports wagering patrons to incentivize sports wagering; (C) Voided wagers; (D) Cancelled wagers; (E) The cost of free play or promotional credits provided to and redeemed by the applicable licensee’s patrons, provided that the aggregate amount of such cost of free play or promotional credits that may be deducted under this subsection in any calendar month shall not exceed twenty-five percent (25%) of the total of all cash and cash equivalents received by the applicable licensee for such calendar month; (F) Any sums paid as a result of any federal tax, including federal excise tax; and (G) Uncollectible sports wagering receivables, not to exceed two percent (2%) of the total of all sums, less the amount paid out as winnings to sports wagering patrons. (6) If the amount of adjusted gross revenue in a calendar month is a negative number, the licensee shall remit no sports wagering tax for that calendar month. Any negative adjusted gross revenue shall be carried over and calculated as a deduction in the subsequent calendar months until the negative balance has been brought to zero. (7) The sports wagering tax remittal shall include all information necessary for adjustments and reconciliation of tax liability and shall be subject to audit by the commission. Adjustments to previously reported tax information shall be made by the licensee, except that no adjustment of twenty-five thousand dollars ($25,000) or more shall be made to previously reported adjusted gross revenue without the prior written approval of the commission. AUTHORITY: section 39(g) of Article III, Mo. Const., section 313.004, RSMo 2016, and sections 313.800–313.850, RSMo 2016 and Supp. 2025.* Original rule filed May 14, 2025, effective Nov. 30, 2025. *Original authority: 313.004, RSMo 1993, amended 1994, 2014, and 313.800-313.850, see Revised Statutes of Missouri, 2016 and Supp. 2025.