2024 Seattle Gambling Tax Notice
Effective December 26, 2024, the Seattle City Council enacted legislation signed by the Mayor that made changes to the Seattle Gambling Tax. (SMC 5.52) Ordinance 127144 eliminated the Seattle Gambling Tax imposed upon business activities of bingo games and raffles conducted by bona-fide nonprofit organizations.
Gambling Tax
Gambling tax is paid on the revenue earned from pull-tabs, punch boards, amusement games and fund-raising events.
Both for-profit businesses and nonprofits must pay the Seattle Gambling Tax. Nonprofits, however, are subject to gambling tax only when engaging in the following activities:
- Fund-raising events other than a bingo game or raffle,
- amusement game activities and
- selling pull-tabs and punch boards.
Further, with respect to amusement games, the Seattle Gambling Tax only imposes tax upon bona-fide nonprofit organizations when the revenue they earn exceeds $5,000 per year.
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 | |
| Pull-tabs and punch boards | 0.10 (10%) |
| Fundraising event (that is not a bingo game or raffle) | 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.
Nonprofit gambling proceeds from fundraising events other than bingo or raffles must be reported manually; they cannot be reported using the online system, FileLocal. 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.