State-Level Gambling Legality in Washington
Washington operates a highly restrictive gambling legal system, with its framework primarily centered around tribal-state compacts. The state's strict stance is rooted in its public policy to prevent organized crime and promote social welfare by limiting gambling activities. Online gambling for real money, including online poker, is explicitly prohibited and classified as a Class C felony. However, the state has recently allowed in-person sports betting at tribal casinos.
The Washington State Gambling Commission oversees and licenses all authorized activities, including card rooms, charitable games, and the lottery, while co-regulating tribal gaming. Washington's gambling statutes are codified in the Revised Code of Washington 9.46. This legislation has been in place since 1973 and outlines the state's tight control over the industry. The legal environment is unique in that it prioritizes tribal sovereignty and severely limits other gambling models, resulting in one of the most cautious approaches in the United States.
Gambling Taxes in Washington
The state of Washington does not levy a state-level gambling tax on winnings. However, gambling winnings are still subject to federal income tax, and players must report them on their federal tax returns. At the local level, cities and counties are permitted to tax gambling receipts from licensed operators.
The tax rates vary by locality and the type of gambling activity, with maximums set by state law. For example, card rooms can be taxed up to 20% of their gross revenue, while bingo and raffles face a maximum of 5% of net receipts. This decentralized tax structure puts the burden on local jurisdictions to collect revenue from gambling.