"Sec. 1   RCW 9.46.295 and 2011 c 134 s 1 are each amended to read as follows:
     (1) Any license to engage in any of the gambling activities authorized by this chapter as now exists or as hereafter amended, and issued under the authority thereof ((shall be)) is legal authority to engage in the gambling activities for which issued throughout the incorporated and unincorporated area of any county, except that a city located therein with respect to that city, or a county with respect to all areas within that county except for such cities, may absolutely prohibit, but may not change the scope of license, any or all of the gambling activities for which the license was issued.
     (2)(a) A city or town with a prohibition on house-banked social card game licenses that annexes an area that is within a city, town, or county that permits house-banked social card games may allow a house-banked social card game business that was licensed by the commission as of July 26, 2009, to continue operating if the city or town is authorized to impose a tax under RCW 82.14.415 and can demonstrate that the continuation of the house-banked social card game business will reduce the credit against the state sales and use tax as provided in RCW 82.14.415(7).
     (b) A city or town that allowed a house-banked social card game business in an annexed area to continue operating under (a) of this subsection before July 15, 2010, ((shall)) must allow all social card game businesses in the annexed area that were operating and licensed by the commission as of January 1, 2011, to continue operating.
     (c) A city or town that allows a social card game business in an annexed area to continue operating is not required to allow additional social card game businesses.
     (d) A city or town with a prohibition on house-banked social card game businesses that annexes an area that is within a city, town, or county, where the annexed city, town, or county: (i) Permits house-banked social card games; and (ii) is not eligible for the tax under RCW 82.14.415, the annexing city or town may allow a house-banked social card game business that was licensed by the commission prior to January 1, 2013, to continue operating if the annexing city or town annexes all of the established urban growth area within a county for the city or town."