Gambling Tax
Gambling tax is paid on the revenue earned from bingo, raffles, pull-tabs, punch boards and amusement games.
Both for-profit businesses and nonprofits must pay the Seattle gambling tax. Nonprofits, however, only pay when the revenue they earn exceeds a certain amount.
Tax rate
The Seattle gambling tax rate varies depending on the gambling activity and the type of organization conducting the activity.
| Gambling activities: for-profit businesses | Tax rate |
|---|---|
| Amusement games | 0.02 (2%) |
| Pull-tabs and punch boards | 0.05 (5%) |
| Gambling activities: nonprofit organizations | |
| Bingo and raffles | 0.05 (5%) |
| Pull-tabs and punch boards | 0.10 (10%) |
| Fundraising event | 0.10 (10%) |
Guidelines to follow
Before you conduct gambling activities in Seattle, you must:
- Register with the Washington State Gambling Commission.
- Complete the notice of intent to conduct gambling activity form and email it to tax@seattle.gov with a copy of your valid state gambling license.
Nonprofits don't pay the gambling tax if their yearly gambling revenue is less than $5,000 for bingo or amusement games, or less than $10,000 for raffles.
Nonprofit gambling proceeds from bingo, raffles or fundraising must be reported manually; they cannot be reported using the online system. Contact us at tax@seattle.gov if you have questions about conducting gambling activities as a nonprofit.
Read the code
You can read the Seattle Municipal Code (SMC) for legal details about the gambling tax.
SMC Chapter 5.52 covers the gambling tax.