Washington Revised Code Title 82. Excise Taxes § 82.04.285. Tax on contests of chance

(1) Upon every person engaging within this state in the business of operating contests of chance; as to such persons, the amount of tax with respect to the business of operating contests of chance is equal to the gross income of the business derived from contests of chance multiplied by the rate of 1.5 percent.

(2) An additional tax is imposed on those persons subject to tax in subsection (1) of this section. The amount of the additional tax with respect to the business of operating contests of chance is equal to the gross income of the business derived from contests of chance multiplied by the rate of 0.2 percent through June 30, 2024, and 0.26 percent thereafter. The money collected under this subsection (2) shall be deposited in the problem gambling account created in RCW 41.05.751. This subsection does not apply to businesses operating contests of chance when the gross income from the operation of contests of chance is less than $50,000 per year.

(4) “Gross income of the business” does not include the monetary value or actual cost of any prizes that are awarded, amounts paid to players for winning wagers, accrual of prizes for progressive jackpot contests, or repayment of amounts used to seed guaranteed progressive jackpot prizes.