(1) "Base license fee" is the fee you pay us when you:

(a) Apply for an organization license or permit; or

(b) Renew your organization's license or annual permit.

(2) "Base license fee" is the minimum annual license fee a licensed organization or permit holder will pay for operating an authorized activity.

"Maximum annual license fee" is the most you will pay to operate an authorized activity for the license year, which includes the:

(1) Base license fee; and

(2) Quarterly license fees.

"Quarterly license fees" means the licensee's gross gambling receipts from the previous quarter multiplied by the gross gambling receipts rate.

"Gross gambling receipts rate" is the rate listed in this chapter that licensees use to calculate their quarterly license fees, if applicable. This also is the rate used for quarterly license reports.

(1) "Gross gambling receipts" means the amount due to any operator of an authorized activity as described in subsection (5) of this section.

(2) The amounts must be stated in U.S. currency.

(3) The value must be before any deductions for prizes or other expenses, such as over/short.

(4) "Gross gambling receipts" does not include fees from players to enter player-supported jackpots. However, any portion of wagers deducted for any purpose other than increasing current prizes or repayment of amounts used to seed prizes are "gross gambling receipts."

(5) Gross gambling receipts for authorized activities:

"Net win" means gross wagers received from gambling activities or fund-raising events minus the:

(1) Amount paid to players for winning wagers; and

(2) Accrual of prizes for progressive jackpot contests; and

(3) Repayment of amounts used to seed guaranteed progressive jackpot prizes.

"Quarterly license report" means the report:

(1) Filed by each licensed organization, annual permit holder and fund-raising event licensee thirty days after the end of each quarter; and

(2) Which includes the licensee's gross gambling receipts from the previous quarter multiplied by the gross gambling receipts rate to calculate the quarterly license fee due to the commission.

(1) All licensed organizations will pay annual license fees. The annual license fee will be up to five payments and includes:

(a) A base license fee paid with your:

(i) Initial application for a new license or permit; or

(ii) License renewal or annual permit application; and

(b) Quarterly license fees, if applicable, based on the gross gambling receipts reported on your quarterly license report.

(2) Licensed organizations starting a new activity will begin paying quarterly license fees, if applicable, on that activity upon completion of the first quarter, whether a partial or full quarter, after your license or annual permit was issued.

(3) Individual licensees will pay an annual license fee with their initial application or license renewal application.

(1) The quarterly license fee is calculated based on the gross gambling receipts from the previous quarter as reported on your quarterly license report.

(2) Each license year, the quarterly license fees will be offset by the base license fee. (For example, if your base license fee is sixty-five dollars and your quarterly license fee is forty-five dollars for the first quarter, no additional amount is due for the first quarter. You would offset any future quarterly license fees by the remaining twenty dollars of your base license fee.)

Licensed organizations must submit quarterly license reports. Licensed organizations must also submit quarterly license fees to us, if applicable, for each licensed gambling activity beginning with the first quarter of their license year. The quarterly license fee is due with the quarterly license report.

The quarterly license reports must be in the format we require and must:

(1)

(2) Be received online at our administrative office or postmarked no later than the dates indicated in the table in subsection (1) of this section; and

(3) Be submitted even if there is no quarterly license fee payable to us; and

(4) Be accurate; and

(5) Be completed by the highest ranking executive officer or a designee. If someone other than the licensee or an employee prepares the report, the preparer must include his or her name and business telephone number on the report; and

(6) Be submitted for any period of time the license was valid, even if there was no gambling activity or the gambling license was not renewed.

(1) You must report your gross gambling receipts for each of your licensed gambling activities during the previous quarter on your quarterly license report.

(2) You must submit a quarterly license report even if you:

(a) Only need to pay your base license fee;

(b) Have paid the maximum annual license fee for your license year;

(c) You do not owe a quarterly license fee for the quarter;

(d) Have no gross gambling receipts to report;

(e) Close your business;

(f) Surrender your license;

(g) Do not renew your license; or

(h) Your license is revoked or suspended.

(1) All licensees must submit the following online, where applicable:

(a) Renewal application and base license fees; and

(b) Quarterly license fees; and

(c) Quarterly license reports.

(2) We may waive these requirements if a licensed organization can show good cause. The reasons for good cause include:

(a) You do not have access to the internet using your own computer or similar equipment; or

(b) You do not have a bank account; or

(c) Your bank is unable to send electronic fund transactions; or

(d) Some other circumstance or condition exists that, in our judgment, prevents you from submitting online.

(3) We may waive these requirements if a licensed individual can show good cause. The reasons for good cause include:

(a) You do not have access to the internet using your own computer or similar equipment; or

(b) You do not have a bank account or credit card; or

(c) Your bank is unable to send electronic fund transactions; or

(d) Some other circumstance or condition exists that, in our judgment, prevents you from submitting online.

(4) You must request a waiver when applying for a new license or permit.

(5) A waiver will cover all fees and reports required under subsection (1) of this section.

(1) You must renew online, unless you have received a waiver as outlined in this chapter and allow enough time to:

(a) Print the license prior to midnight before the license expires; or

(b) Have us print the license and mail it to you so you receive it before your license expires.

(2) If you have a waiver and are not renewing your license online, you must ensure a properly completed renewal application and all applicable license fees are received at our administrative office in Lacey at least 30 days before the expiration date on the license.

(3) If you do not submit a properly completed renewal application and all fees and your license expires, you must immediately stop the gambling activity covered by your license.

(4) If your license expires, you must submit an application and you must not operate any gambling activity until a new license is issued.

(1) Licensees who do not file their quarterly license reports and/or pay quarterly license fees within thirty days from the end of each quarter are in violation of this chapter.

(2) Licensees will be afforded one thirty-day late filing and payment period after their quarterly license reports and quarterly license fees are due. However, a twenty-five dollar fee will be charged for each day a licensee fails to file a quarterly license report or pay quarterly license fees during the thirty-day late filing and payment period.

(3) A licensee's failure to file quarterly license reports or pay quarterly license fees during the thirty-day late filing and payment period could result in administrative action against your licenses.

(4) Licensees will be responsible for paying any outstanding license fees including, but not limited to, late fees and any additional costs associated with the collection of these fees before a license suspension is lifted or a new licensing application is approved.

(1) You must amend any previously submitted quarterly license reports immediately upon discovering a discrepancy in reporting your gross gambling receipts or quarterly license fees paid.

(2) Any additional quarterly license fees due as a result of an amended quarterly license report will be due immediately upon filing your amended quarterly license report. You may face administrative action against your license for failing to accurately report. If you overpaid your quarterly license fees, you may receive a refund after we deduct our processing costs.

(3) You must submit amended quarterly license reports and any related payments to us online unless you have a waiver.

(1) We will not prorate or refund fees when:

(a) You discontinue your gambling activities; or

(b) You voluntarily surrender your license or permit; or

(c) We suspend or revoke your license.

(2) We keep a portion of your application or license fees for processing costs when:

(a) We deny or administratively close your application; or

(b) You withdraw your application; or

(c) You overpaid us; or

(d) We received duplicate license fees.

(1) If your bank returns your payment to us for any reason, you must:

(a) Pay us in full, by certified check, money order, or cash, within five days of notification; and

(b) Reimburse our processing costs which would include, but not be limited to, time spent notifying you and seeking payment.

(2) If you fail to pay within five days of notification:

(a) We will administratively close your application; or

(b) Your license expires and all gambling activity must stop; or

(c) Administrative action may be taken against your license(s).

(3) If we administratively close your application or your license expires, you must give us a new application with fees paid by certified check, money order, or cash in order to be considered for a license.

(1) You must pay all outstanding fees assessed and owed if you:

(a) Stop operating the gambling activity; or

(b) Close your business; or

(c) Surrender your license; or

(d) Do not renew your license; or

(e) Your license is revoked.

(2) If you do not pay, we may take action against other licenses you hold or refer the debt to collections, or both.

(3) Licensees will be responsible for paying any outstanding license fees, including late fees, and any additional licensing or processing costs associated with the collection of these fees before a licensing suspension is lifted or any new licensing application is approved.

(1) You must apply to us if you want to submit gambling equipment, supplies, services, or games for our review.

(2) You must pay the application deposit before we perform the review.

(3) You must also reimburse us for any additional costs of the review.

Bona fide charitable and nonprofit organizations must pay the following fees:

(1) Annual licenses:

(2) Event licenses or permits:

(3) Change fees:

(4) Other fees:

All commercial stimulant organizations must pay the following fees:

(1) Annual licenses:

(2) Change fees:

(3) Other fees:

All other business organizations must pay the following fees:

(1) Annual licenses or permits:

(2) Events or permits:

(3) Change fees:

(4) Other fees:

Individuals must pay the following fees:

(1) Annual license and additional employer fees:

(2) Class B card room employees must pay the out-of-state application fee if over the last ten years the applicant lived outside of Washington for six nonconsecutive months or more.

(3) Other service fees:

(4) Military personnel returning from service. If a license expires while an individual is on active military service, the individual may apply to have their license reissued at the renewal fee. The application must be received within six months after completing their active military service. The applicant must provide evidence of the completion date of active military service.

(1) As used in this section, "organization" means a charitable or nonprofit organization holding one or more licenses listed in WAC 230-05-160, a commercial stimulant organization holding one or more licenses listed in WAC 230-05-165, and other businesses holding one or more licenses listed in WAC 230-05-170.

(2) For organizations renewing their license with a license effective date between October 1, 2024, and April 1, 2025, the base license fee will be prorated as follows:

(3) Organizations that renewed before the effective date of this rule will receive a refund of 25 percent of the base fee paid. All other organizations renewing will pay a reduced base fee amount.

(4) This rule is only effective through June 30, 2025.