What do kiddie rides, mechanical horses, claw machines, jukeboxes, and those Vegas-style redemption games you see in bars, restaurants, and gas stations all have in common?
All of these devices typically require someone to put in money to make them work. In fact, they all fall under the general category of Coin Operated Amusement Machines (COAM). This is true even when the machines themselves don’t actually accept coins – which is the case with many machines these days.
While the general definition of a COAM is that it provides entertainment (and sometimes offers the opportunity to win something), different jurisdictions may have their own rules and definitions when it comes to laws and regulations that govern these machines. In the State of Georgia, for example, there are two types of COAM machines as defined by Georgia statute: Class A machines and Class B machines.
What Are the Different Types of COAM Machines?
Class A COAM machines, at least in Georgia, are defined as things like kiddie rides, pinball and other arcade games, jukeboxes and pool tables or other skill games that require money to operate. Class B games, on the other hand, are redemption games that are also games of skill where players who win can carry over their points to subsequent plays. While these classifications are specific to the state, the distinction is pretty clear across the board. While all of the games exist for the enjoyment of players, Class B games have the added benefit of offering users the opportunity to earn credits that can be redeemed for more gameplay and, in some cases, for merchandise or even gift cards.
The Las Vegas-style game machines that you most typically see in convenience stores, restaurants, and bars are Class B COAM games. They tend to look like the slot machines you’ll find in places like Vegas, Atlantic City, and any number of other gambling destinations that have sprung up across the U.S. While you can still find some games with the traditional bars, cherries, and jackpot symbols, today’s machines tend to be much more sophisticated and feature more entertaining themes and gameplay. Some are even based on familiar game shows like Wheel of Fortune.
How Do Redemption Games Work?
In most places (Georgia, for example) you must be at least 18 to play Class B COAM games. This is similar to rules that govern lotteries – the laws are in place to make sure that people are of the age to make their own decisions regarding where they spend their money.
And, much like the lottery, Class B games offer you the chance to win prizes – though not straight-up cash. Instead, playing Class B machines offer you the opportunity to collect points that can be used for further play or redeemed for various items of value. Even though these machines very much resemble the games you might play in Las Vegas, they differ in that they do require some skill. This typically involves the player making decisions during game play that impact whether they win or not, and the amount of those winnings.
If a player wins enough points while playing one of these skill machines, those points can then be converted into something tangible. In Georgia, players can redeem points or vouchers for things like:
- Food
- Beverages
- Fuel
- Other store merchandise
- In-store gift cards and gift certificates
Note that there are some things that are expressly forbidden to be offered as prizes. These include cash, alcohol, tobacco, and firearms.
How Can Offering COAM Games Benefit a Business?
Offering COAM redemption games to customers can benefit businesses in a variety of ways. First and foremost, installing gaming terminals is an easy way to increase revenue with very little work on the part of the business owner. In fact, INAMAX has found that establishments who offer this type of gaming can generate an extra $5,000 per month on average.
Another benefit of offering redemption games to customers is that businesses can attract a wider audience than they might otherwise. People who enjoy playing skill machines might patronize a store they otherwise might not because of the game offerings – and often end up spending more money in the establishment.
Having modern and attractive games can also improve the overall atmosphere and brand image of a location, positioning it as a fun and dynamic place. This, in turn, can lead to free word-of-mouth advertising and more positive online reviews.
Who Regulates Redemption COAM Games?
Regulation of COAM games that offer redemption generally falls to the state in which the games are played. In Georgia, for example, the Georgia Lottery Corporation (GLC) regulates the COAM industry. In fact, there is an entire arm of the GCL that is charged with making sure everyone who offers these machines to their customers does so within the bounds of the law.
In Georgia, business owners who offer redemption games lease them from gaming companies and purchase a license to operate from the Lottery Corporation. In turn, any profits from operating the machines are shared between the business owner, the gaming company that is leasing out the machines, and the Lottery Corporation. All of the proceeds that go to the Lottery Corporation are dedicated to the HOPE Scholarship fund, which helps Georgia students who have demonstrated academic achievement pursue their post-secondary education.
Where Can I Play Coin Operated Redemption Games?
As we mentioned earlier, you’ll most typically find redemption games in gas station convenience stores, restaurants and bars, but you might also find machines in places like arcades, bowling alleys, laundromats, golf clubs, and fraternal clubs like VFWs.
There’s no central directory of locations that offer redemption games, but in Georgia you’ll typically find them in locations that also offer the chance to play the lottery. You can identify those locations nearest to you here, then either call them up or stop in to see if they offer the games. If you don’t see the games immediately, it doesn’t hurt to ask – sometimes they’ll be in a dedicated room that’s not immediately obvious.
Happy gaming!