Chapter 10.30
GAMBLING CODE

Sections:

Article I. General Regulations

10.30.010    Title.

10.30.015    Repealed.

10.30.020    State statutes adopted by reference.

10.30.030    Unlawful practices.

10.30.040    Nuisances defined.

10.30.050    Repealed.

10.30.060    Repealed.

10.30.070    Repealed.

Article II. Gambling Tax

10.30.090    Punchboards and pull tabs.

10.30.100    Social card games.

10.30.110    Bingo, raffles and amusement games.

10.30.120    Tax payments.

10.30.130    Taxpayer to keep records.

10.30.140    Investigation of returns.

10.30.150    Extension of time – Penalties.

10.30.160    Overpayment or underpayment.

10.30.170    Failure to make return.

10.30.180    Appeal to city council.

10.30.190    Rules and regulations.

10.30.200    Unlawful acts.

10.30.210    License tax additional to others.

10.30.220    Tax constitutes debt.

10.30.230    Violation – Penalty.

Article I. General Regulations

10.30.010 Title.

The ordinance codified in this chapter shall be known as the “Lynnwood Gambling Code.” (Ord. 973 § 8(1), 1978)

10.30.015 State statutes adopted by reference – Scope.

Repealed.

10.30.020 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.

9.46.0282    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.

9.46.0335    Sports pools authorized.

9.46.0341    Golfing sweepstakes authorized.

9.46.0345    Bowling sweepstakes authorized.

9.46.0351    Social card, dice games – Use of premises of charitable, nonprofit organization.

9.46.0356    Promotional contest 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.

9.46.170    False or misleading entries or statements, refusal to produce records.

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 – Defined.

9.46.1962    Cheating in the second degree.

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.

9.46.225    Professional gambling – Penalties not applicable to authorized activities.

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 leasehold 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. 3404 § 3 (Att. A), 2021; Ord. 2556 § 1, 2005; Ord. 2209 § 1, 1998; Ord. 973 § 1, 1978)

10.30.030 Unlawful practices.

In addition to the unlawful offenses contained in the state laws adopted by reference in LMC 10.30.010, and in accordance with RCW 9.46.295, (1) engaging in or conducting gambling activities, (2) possessing or permitting gambling devices to be used or placed in any building, or (3) permitting a building to be used or intended to be used for gambling or gambling activity shall be unlawful within the city, and each violation thereof constitute a gross misdemeanor, except it shall not be unlawful:

A. To engage in activities, authorized by Chapter 9.46 RCW, as now or hereafter amended, which activities are exempted from regulation or licensing by said Chapter 9.46 RCW;

B. For bona fide charitable or nonprofit organizations to conduct activities authorized by Chapter 9.46 RCW, as now or hereafter amended, when licensed, conducted or operated pursuant to state law, including rules and regulations of the Washington State Gambling Commission;

C. For any person, association or organization operating an established business primarily engaged in the selling of food or drink for consumption on premises to utilize punch boards and pull tabs as a commercial stimulant to such business, when licensed, conducted and operated pursuant to state law, including rules and regulations of the Washington State Gambling Commission; or

D. To operate, conduct or engage in amusement games, when licensed, conducted, and operated in accordance with state law, including rules and regulations of the Washington State Gambling Commission. (Ord. 2982 § 1, 2013)

10.30.040 Nuisances defined.

The conducting of bingo games, amusement games, 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, 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. 2982 § 2, 2013; Ord. 2209 § 1, 1998)

10.30.050 Possessing or permitting gambling devices prohibited – Exception.

Repealed by Ord. 2209.

10.30.060 Permitting building to be used for gambling prohibited – Exception.

Repealed by Ord. 2209.

10.30.070 Permitted activities.

Repealed by Ord. 2209.

Article II. Gambling Tax

10.30.090 Punchboards and pull tabs.

There is levied upon and shall be collected from and paid as hereinafter provided:

A. By every commercial stimulant operator utilizing punch boards and pull tabs games as authorized by this chapter, a tax of five percent of the gross receipts from such punch boards and pull tabs;

B. By bona fide charitable and nonprofit organizations a tax of 10 percent of gross receipts from the operation of the games less the amount awarded as cash or merchandise prizes. (Ord. 2157 § 1, 1997; Ord. 1227 § 2, 1981; Ord. 973, 1978)

10.30.100 Social card games.

There is levied upon and shall be collected from and paid as hereinafter provided, by every person, association or organization conducting social card games as authorized by this chapter, a tax of 20 percent of the gross revenue received from the conducting of social card games. (Ord. 1227 § 3, 1981; Ord. 973, 1978)

10.30.110 Bingo, raffles and amusement games.

There is levied upon and shall be collected from and paid as hereinafter provided, by every person, association or organization conducting as authorized by this chapter:

A. Bingo: a tax of five percent of the gross revenue received therefrom, less the amount paid for as prizes; and/or

B. Raffles: a tax of five percent of the gross revenue received therefrom, less the amount paid for as prizes; provided, however, that no tax shall be imposed on the first $10,000 of net proceeds from raffles conducted by any charitable or nonprofit organization as defined in this chapter;

C. Amusement games: a tax of two percent of gross revenue received therefrom, less the amount paid for as prizes.

Provided, that no tax shall be imposed under the authority of this chapter on bingo, raffles, or amusement games when such activities, or any combination thereof, are conducted by any bona fide charitable or nonprofit organization as defined in RCW 9.46.020(3), as now or hereafter amended, which organization has no paid operating or management personnel and had gross income from bingo, raffles, or amusement games, or any combination thereof, not exceeding $5,000 per year, less the amount paid for as prizes. (Ord. 2556 § 2, 2005; Ord. 2083 § 1, 1996; Ord. 1227 § 4, 1981; Ord. 973, 1978)

10.30.120 Tax payments.

A. Quarterly. Quarterly payments of tax imposed by this chapter shall be due and payable in quarterly installments, and remittance therefor shall be made on or before the fifteenth day of the month next succeeding the end of the quarterly period in which the tax accrued. The remittance shall be made by bond draft, certified check, cashier’s check, money order, or in cash, and shall be accompanied by a return on a form to be provided and prescribed by the city finance officer. The taxpayer shall be required to swear or affirm that the information given on the tax return is full and true and that the taxpayer knows the same to be so.

B. Annual Return. Whenever the total tax for which any person is liable under this chapter does not exceed the sum of $2.00 for any quarterly period, an annual return may be made upon written request and subject to the approval of the city finance officer.

C. Partial Periods. Whenever a taxpayer commences to engage in business during any quarterly period, his first return and tax shall be based upon and cover the portion of the quarterly period during which he is engaged in business.

D. First payments and returns under this chapter shall be made on or before April 15, 1982. (Ord. 1227 § 5, 1981; Ord. 973, 1978)

10.30.130 Taxpayer to keep records.

It shall be the duty of each taxpayer taxed pursuant to this chapter to keep and enter in a proper book or set of books or records an account which shall accurately reflect the amount of the gross revenue received from punchboards, pull tabs and/or social card games. (Ord. 1227 § 6, 1981; Ord. 973, 1978)

10.30.140 Investigation of returns.

If any taxpayer fails to make his return, or if the city finance officer is dissatisfied as to the correctness of the statements made in the return of any taxpayer, the officer, or his authorized agent, may enter the premises of such taxpayer at any reasonable time for the purpose of inspecting his books or records of account to ascertain the amount of the tax or to determine the correctness of such statements, as the case may be. (Ord. 1227 § 7, 1981; Ord. 973, 1978)

10.30.150 Extension of time – Penalties.

The city finance officer for good cause shown may extend the time for making the filing and return as required under this chapter and may grant such reasonable additional time within which to file such return as he may deem proper; provided, that any extension in excess of 30 days shall be conditioned upon payment of interest of one percent for each 30 days, or portion thereof, on the amount of the tax from the date upon which the tax becomes due. If tax returns and/or payment are not received within 15 days of due date, a penalty must be included as follows:

A. If 16 to 45 days delinquent: 10 percent of the tax with a minimum penalty of $1.00;

B. If 46 to 75 days delinquent: 15 percent of the tax with a minimum penalty of $2.00;

C. If 76 or more days delinquent: 20 percent of the tax with a minimum penalty of $3.00. (Ord. 1227 § 8, 1981; Ord. 973, 1978)

10.30.160 Overpayment or underpayment.

If the city finance officer, upon investigation or upon checking returns, finds that the tax paid on any of them is more than the amount required of the taxpayer, he shall refund the amount overpaid by a warrant upon the general fund. If the city finance officer finds that the tax paid is less than required, he shall mail a statement to the taxpayer showing the balance due, who shall within 10 days pay the amount shown thereon. (Ord. 1227 § 9, 1981; Ord. 973, 1978)

10.30.170 Failure to make return.

If any taxpayer fails, neglects or refuses to make his return as and when required in this chapter, the city finance officer is authorized to determine the amount of the tax payable, and by mail to notify such taxpayer of the amount so determined. The amount so fixed shall thereupon become the tax and be immediately due and payable. (Ord. 1227 § 10, 1981; Ord. 973, 1978)

10.30.180 Appeal to city council.

Any taxpayer, aggrieved by the amount of the tax found by the city finance officer to be required under the provisions of this chapter, may appeal to the city council from such finding by filing a written notice of appeal with the city treasurer within 14 days from the time such taxpayer was given notice of such amount. The city finance officer shall, as soon as practicable, fix a time and place for the hearing on such appeal, which time shall be not more than 30 days after the filing of the notice of appeal, and he shall cause a notice of hearing, and notice of the time and place thereof to be mailed to the applicant. At such hearing the taxpayer shall be entitled to be heard and to introduce evidence in his own behalf. The city council shall thereupon ascertain the correct amount of the tax by resolution and the city finance officer shall immediately notify the appellant thereof by mail, which amount, together with costs of the appeal, if appellant is unsuccessful therein, must be paid within 10 days after such notice is given. (Ord. 1227 § 11, 1981; Ord. 973, 1978)

10.30.190 Rules and regulations.

The city finance officer shall have the power, and it shall be his duty, from time-to-time, to adopt, publish and enforce rules and regulations not inconsistent with this chapter or with law for the purpose of carrying out the provisions of this chapter, and it is unlawful to violate or fail to comply with any such rule or regulation. (Ord. 1227 § 12, 1981; Ord. 973, 1978)

10.30.200 Unlawful acts.

It is unlawful for any person liable to tax under this chapter to fail or refuse to make the returns as and when required or to pay the tax when due, or for any person to make any false or fraudulent return or any false statement or representation in, or in connection with, any such return, or to aid or abet another in any attempt to evade payment of the tax, or any part thereof. (Ord. 1227 § 13, 1981; Ord. 973, 1978)

10.30.210 License tax additional to others.

The tax levied in this chapter shall be additional to any license fee or tax imposed or levied under any law or any other ordinance of Lynnwood, a municipal corporation, except as otherwise expressly provided in this chapter. (Ord. 1227 § 14, 1981; Ord. 973, 1978)

10.30.220 Tax constitutes debt.

Any tax due and unpaid under this chapter, and all penalties thereon, shall constitute a debt to Lynnwood, a municipal corporation, and may be collected by court proceedings in the same manner as any other debt in the like amount, which remedy shall be in addition to all other existing remedies. The right of recovery by the city from the taxpayer for any tax provided under this chapter shall be outlawed after the expiration of three years and the right of recovery against the city because of overpayment of tax by any taxpayer shall be outlawed after the expiration of three years after which time the taxpayer shall have no right of recovery against the city. (Ord. 1227 § 15, 1981; Ord. 973, 1978)

10.30.230 Violation – Penalty.

Except as otherwise provided, any person, association, business or corporation violating or failing to comply with any of the provisions of this chapter, or any lawful rule or regulation adopted by the city finance officer pursuant thereto, upon conviction thereof, shall be guilty of a criminal misdemeanor and punished according to LMC 10.02.080. (Ord. 1403 § 4, 1984; Ord. 1227 § 16, 1981; Ord. 973, 1978)