Federal Way, WA Gambling & Gaming: Card Room Licensing (2026)
Key Facts
- Card game tax rate
- 10% of annual gross receipts
- Governing section
- FWRC 3.40.020 and 3.40.040(1)(d)
- Reporting period
- Quarterly under $10,000/yr, else monthly
- Late penalty
- 10-15% of tax, $5-$10 minimum
- Interest on unpaid tax
- 12% per year, compounded daily
- Administered by
- City clerk under State Gambling Commission rules
Summary
Federal Way lets any established food-or-drink business run social card games as a commercial stimulant once state-licensed under RCW 9.46, but taxes the activity at 10 percent of annual gross receipts under FWRC 3.40.040, with the city clerk administering collection under State Gambling Commission rules.
The city authorizes any person operating an established business primarily engaged in the selling of food or drink for consumption on the premises to conduct social card games and to utilize punchboards and pull-tabs as a commercial stimulant to such business when licensed and utilized or operated pursuant to the provisions of Chapter 9.46 RCW. [...] In accordance with RCW 9.46.110, there is levied upon all persons a tax on every gambling activity permitted by this chapter at the following rates: [...] (d) Any social card game at a rate of 10 percent of the annual gross receipts;
Official source re-checked September 8, 2026: no newer edition of the code had been published (publisher’s edition: current through Ordinance 26-1049, passed August 11, 2026).
Full Breakdown
46 RCW, the state gambling statute. Federal Way does not run its own separate card room license; it piggybacks on the state license and layers a local excise tax on top. 040(1)(d) sets that tax at 10 percent of the annual gross receipts generated by any social card game, distinct from the 3 percent rate charged to commercial stimulant operators on punchboards and pull-tabs and the 10 percent rate charged to nonprofits on the same devices. 050, applying State Gambling Commission rules and regulations. 070: quarterly for an establishment whose gambling tax collections in the preceding year totaled $10,000 or less, monthly for anything above that.
080 available to the city clerk at all reasonable times to verify compliance. 40 traces to Ordinance No. 90-15 (1990) and was last amended for tax rates by Ordinance No. 10-663 (2010); it is codified at former Code 2001 § 14-144.
Violations & Fines
Late gambling tax returns draw a 10 percent penalty (minimum $5.00) if filed by the 15th of the second month after the reporting period, rising to a 15 percent penalty (minimum $10.00) if filed any later but before the second month ends, per FWRC 3.40.070(2). Unpaid tax accrues interest at 12 percent per year, compounded daily, on the combined principal, interest and penalties. Failing to pay by the last day of the second month following the reporting period is both a criminal and a civil violation of the chapter under FWRC 3.40.070(2)(d).
Frequently Asked Questions
Can any bar or restaurant in Federal Way run a card room?
How much tax does Federal Way charge on card games?
What happens if a card room operator files the gambling tax late?
Who collects and enforces Federal Way's gambling tax?
Sources & Official References
Other rules in Federal Way
Compare Federal Way to another location·View the Washington gambling & gaming overview
See something wrong?
Help us keep this page accurate. If you notice an error or outdated information, let us know.
Card Room Licensing in Nearby Cities
How other cities in King County handle card room licensing.