Gambling Tax
(Seattle Municipal Code Chapter 5.52)

What's a gambling tax?

Seattle levies a gambling tax on the gross revenue generated by all people, corporations, associations, or organizations conducting or operating gambling activities within the city limits. Different tax rates, using gross revenue less the amount awarded as cash or merchandise prizes, are levied on all bona fide charitable or nonprofit organizations. Some exemptions are granted; for more information, call (206)684-8484 and ask to speak with a gambling tax inspector.

Is there anything special I have to do before conducting gambling activities in Seattle?

Any person, corporation, association, organization or bona fide charitable or nonprofit organization intending to conduct any amusement games, bingo and raffles, punch boards and pull tabs, and social card games or any other gambling activities must register for gambling activity and a business license with Revenue and Consumer Affairs prior to commencement of such activity. You must also register with the state Gambling Commission.

Are there any exceptions to the gambling tax obligation?

Yes, there are three exceptions:

1. Bingo or amusement games conducted by bona fide charitable or nonprofit organizations that do not pay operating or management personnel and whose net gambling receipts do not exceed $5,000 per year. All revenue should be reported. When the annual net gambling receipts fall under $5,000, no tax is due. Tax is due when the annual net gambling receipts are $5,000 and greater.
   
   
2. On the first $10,000 of net gambling receipts from raffles conducted by any bona fide charitable or nonprofit organization. All revenue should be reported and the exemption is automatically applied during processing.
   
   
3. Bingo or amusement games held at the Seattle Center when a prior concession agreement is made with the City of Seattle.
   
   

How often are the gambling taxes due?

Gambling taxes are due monthly for punchcards and pulltabs, and quarterly or annually for all other games. The tax return and payment is due on the last day of the month following the end of the period when revenue was generated. Revenue from gambling activity is also reported on your business license tax return. Penalties and interest are added on late returns. Click here for details regarding interest and penalties.

The material in this site is intended for general informational purposes only. While it is current at the time of publication, changes to the Seattle Municipal Code (SMC) or state law may invalidate some of this information. In the event of a conflict between this guide and the SMC, the SMC prevails.

City of Seattle
Department of Finance and Administrative Services
700 Fifth Ave., Suite 4250
PO Box 34214
Seattle, WA 98124-4214
Telephone: (206) 684-8484
Fax: (206) 684-5170
Contact us at: rca@seattle.gov