Chapter 5.20
GAMBLING

Sections:

5.20.010    State statutes adopted by reference.

5.20.020    State law applicable.

5.20.030    Unlawful practices.

5.20.050    Nuisances defined.

5.20.060    Tax levied upon gambling activities – Exemptions – Use of revenues.

5.20.070    Administration and collection of tax.

5.20.080    Declaration of intent – Statement of receipts.

5.20.090    Payment of tax.

5.20.100    Annual council review.

5.20.010 State statutes adopted by reference.

The following statutes of the state of Washington, as now existing or as they may be hereafter amended, are adopted by reference:

RCW

9.46.010    Legislative declaration.

9.46.0201    “Amusement game.”

9.46.0205    “Bingo.”

9.46.0209    “Bona fide charitable or nonprofit organization.”

9.46.0213    “Bookmaking.”

9.46.0217    “Commercial stimulant.”

9.46.0221    “Commission.”

9.46.0225    “Contest of chance.”

9.46.0229    “Fishing derby.”

9.46.0233    “Fund raising event.”

9.46.0237    “Gambling.”

9.46.0241    “Gambling device.”

9.46.0245    “Gambling information.”

9.46.0249    “Gambling premises.”

9.46.0253    “Gambling record.”

9.46.0257    “Lottery.”

9.46.0261    “Member,” “bona fide member.”

9.46.0265    “Player.”

9.46.0269    “Professional gambling.”

9.46.0273    “Punch boards,” “pull-tabs.”

9.46.0277    “Raffle.”

9.46.0281    “Social card game.”

9.46.0285    “Thing of value.”

9.46.0289    “Whoever,” “person.”

9.46.0305    Dice or coin contests for music, food, or beverage payment.

9.46.0311    Charitable, nonprofit organizations – Authorized gambling activities.

9.46.0315    Raffles – No license required, when.

9.46.0321    Bingo, raffles, amusement games – No license required, when.

9.46.0325    Social card games, punch boards, pull-tabs authorized.

9.46.0331    Amusement games authorized.

9.46.0335    Sports pools authorized.

9.46.0341    Golfing sweepstakes authorized.

9.46.0345    Bowling sweepstakes authorized.

9.46.0355    Promotional contests of chance authorized.

9.46.0361    Turkey shoots authorized.

9.46.110    Taxation of gambling activities – Limitations – Restrictions on punch boards and pull-tabs.

9.46.120    Restrictions as to management or operation personnel – Restriction as to leased premises.

9.46.130    Inspection and audit of premises, paraphernalia, books, and records – Reports for the commission.

9.46.150    Injunctions – Voiding of licenses, permits, or certificates.

9.46.185    Causing person to violate rule or regulation.

9.46.190    Violations relating to fraud and deceit.

9.46.195    Obstruction of public servant in administration or enforcement as violation – Penalty.

9.46.196    Cheating.

9.46.198    Working in gambling activity without license as violation – Penalty.

9.46.200    Action for money damages due to violations – Interest – Attorneys’ fees – Evidence for exoneration.

9.46.210    Enforcement – Commission as a law enforcement agency.

9.46.217    Gambling records – Penalty – Exceptions.

9.46.222    Professional gambling in the third degree.

9.46.231    Gambling devices, real and personal property – Seizure and forfeiture.

9.46.235    Slot machines, antique – Defenses concerning – Presumption created.

9.46.240    Gambling information, transmitting or receiving as violation – Penalty.

9.46.250    Gambling property or premises – Common nuisances, abatement – Termination of mortgage, contract, or lease-hold interests, licenses – Enforcement.

9.46.260    Proof of possession as evidence of knowledge of its character.

9.46.270    Chapter as exclusive authority for taxation of gambling activities.

9.46.293    Fishing derbies exempted.

9.46.295    Licenses as legal authority to engage in activities for which issued – Exception.

9.46.350    Civil action to collect fees, interest, penalties, or tax – Writ of attachment – Records as evidence.

9.46.400    Wildlife raffle.

One or more copies of the above-referenced statutes shall be kept on file in the office of the city clerk for use and examination by the public. (Ord. 1807 § 1, 2000).

5.20.020 State law applicable.

Any license issued under the authority of state law to engage in any legal activities shall be legal authority to engage in the gambling activities for which the license was issued throughout the city, except that the city, in accordance with RCW 9.46.295 as the same now exists or may hereafter be amended, prohibits the following gambling activities within the city:

A.    The conduct or operation of social card games in nonprofit organizations, cardrooms, and businesses primarily engaged in selling of food or drink for consumption on the premises as a commercial stimulant. (Ord. 1807 § 1, 2000).

5.20.030 Unlawful practices.

In addition to the unlawful offenses contained in the state laws adopted by reference in BMC 5.20.010, the following practices shall be unlawful within the city, and each violation thereof constitutes a gross misdemeanor:

A.    Conducting gambling activities prohibited by the city. (Ord. 1807 § 1, 2000).

5.20.050 Nuisances defined.

The conducting of any amusement game, bingo game, or raffle, as defined in this chapter, without a license or beyond the scope of a license as required under state law or the conduct of any gambling activity prohibited by this chapter, is declared a common nuisance and shall be subject to abatement by injunction or as otherwise provided by law. All gambling devices in such cases are common nuisances and shall be subject to seizure immediately upon detection and to confiscation and destruction by order of a superior court or district court, except when in the possession of officers enforcing this chapter. No property right in any such gambling device shall exist or be recognized in any person, except the possessory right of officers in enforcing this chapter. (Ord. 1807 § 1, 2000).

5.20.060 Tax levied upon gambling activities – Exemptions – Use of revenues.

A.    A tax at the rates specified in this section is levied on all persons, associations and organizations who engage in the following activities:

 

Activity

Tax Rate

1

Conduct of any bingo game or raffle

Five percent of the gross revenue received after the amount paid for prizes or as prizes is deducted

2

Conduct or operation of any amusement game

Two percent of the gross revenue received after the amount paid as prizes is deducted

3

Operation of pull-tabs or punch boards as a
commercial stimulant

Five percent of the gross revenue received

4

Operation of pull-tabs or punch boards by bona fide charitable or nonprofit organization

Ten percent of the gross revenue received after the amount paid for prizes or as prizes is deducted

5

Fundraising activities by bona fide charitable or nonprofit organization

Ten percent of the gross revenue received after the amount paid for prizes or as prizes is deducted

B.    Provided, however, that the following exemptions shall apply to the tax levied by subsection A:

1.    No tax shall be imposed on bingo or amusement games when such activities or any combination thereof are conducted by a bona fide charitable or nonprofit organization which organization has no paid operating or management personnel and has gross receipts from bingo or amusement games, or a combination thereof, not exceeding $5,000 per year, less the amount awarded as cash or merchandise prizes.

2.    No tax shall be imposed on the first $10,000 of gross receipts less the amount awarded as cash or merchandise prizes from raffles conducted by a bona fide charitable or nonprofit organization.

3.    An amount equal to 50 percent of the tax upon bingo and amusement games conducted by bona fide charitable or nonprofit organizations will be waived upon satisfactory proof submitted by the organization showing that the proceeds of such gambling activity are used entirely within the city for community or charitable purposes.

4.    No tax shall be imposed upon lower volume licensees, as defined by WAC 230-04-065, conducting gambling activities under subsections (A)(1) and (A)(5) of this section. The license officer, as defined in BMC 5.04.040, is directed to adopt reporting requirements to ensure the effective administration of license holders exempt from payout of the taxes imposed by this section.

C.    Pursuant to RCW 9.46.113, the city shall use the revenue collected from the taxes levied on the authorized gambling activities in this section primarily for the purpose of enforcement of the provisions of this chapter by the city police department. (Ord. 1807 § 1, 2000).

5.20.070 Administration and collection of tax.

The administration and collection of the tax imposed by this chapter shall be by the license officer pursuant to rules and regulations as may be adopted by the Washington State Gambling Commission. In this connection, the license officer’s office shall have the authority to adopt, publish and enforce such rules and regulations not inconsistent with this chapter as are necessary to enable the collection of the tax imposed by this chapter, and prescribe and issue the appropriate forms for determination and declaration of the amount of tax to be paid. It shall be the responsibility of all officers, directors and managers of any organization conducting gambling activities to provide access to such financial records as the license officer, his or her authorized representative, or law enforcement officers, may require in order to determine compliance with this chapter. (Ord. 1807 § 1, 2000).

5.20.080 Declaration of intent – Statement of receipts.

A.    For the purpose of identifying who shall be subject to the tax imposed by this chapter, any person, association or organization intending to conduct or operate any gambling activities authorized by Chapter 9.46 RCW not prohibited by this chapter shall, prior to commencement of any such activity, file with the license officer a sworn declaration of intent to conduct or operate such activity together with a copy of the license issued by the Washington State Gambling Commission. Thereafter, for any period covered by such license or any renewal thereof, any person, association or organization shall, on or before the last day of each April, July, October and January which follows the end of the quarterly period in which the tax accrued, file with the license officer a sworn statement on a form to be provided and prescribed by the license officer, reporting the gross revenue received for the purpose of ascertaining the tax due for the preceding quarterly period.

B.    A bona fide charitable or nonprofit organization must file with the license officer a copy of the letter from the Internal Revenue Service, Department of the Treasury, noting exemption from federal income tax due to its status as a bona fide charitable or nonprofit organization, a copy of its Washington State gambling license, if such license is required, and any forms provided or prescribed by the license officer.

C.    Holders of lower volume licenses shall maintain records as required by the Washington State Gambling Commission and shall file with the license officer a duplicate copy of the summary of these records as required by WAC 230-08-015. (Ord. 1807 § 1, 2000).

5.20.090 Payment of tax.

A.    The tax imposed by this chapter shall be due and payable on a quarterly basis, and remittance therefor shall accompany each return and be in the Finance Department by 5:00 p.m. PST on or before the last day of each April, July, October and January for the preceding quarter in which the tax accrued.

B.    For each payment due, if such payment is not made by the due date and time thereof, there shall be added penalties as follows:

1.    One to 15 days delinquency, 10 percent with a minimum penalty of $10.00;

2.    After 15 days delinquency, 15 percent with a minimum penalty of $10.00.

C.    In addition to the late payment penalties set forth herein, any quarterly tax payment not paid by the due date shall bear interest at 12 percent per annum or the maximum legal rate, whichever is greater. (Ord. 1807 § 1, 2000).

5.20.100 Annual council review.

This chapter shall be reviewed annually by the city council to determine whether the allowed gambling activities and the rate of taxation remain appropriate in the city. (Ord. 1807 § 1, 2000).