The decision to install coin-operated amusement machines (COAM) is an exciting and lucrative prospect for business owners. Not only does it offer an opportunity to net thousands of dollars in passive income by offering customers exciting gameplay, but it can also boost foot traffic and increase the chance of repeat business. The average INAMAX customer makes around $5,000 per month from their games, with some making tens of thousands per month,
While that’s enough to excite any business owner, the Georgia Lottery Corporation’s (GLC) GA COAM license application can feel overwhelming, and it’s easy to get bogged down with legislative legalese.
With this guide, you’ll learn everything you need to know before applying for your GA COAM license so you can confidently diversify your income streams and entice more customers.
Know Which Type of License to Apply For
Small business owners need to apply for a Location license, which grants permission for a licensee who owns retail space to host COAMs for public use.
Obtaining a COAM Location license gives Georgia business owners the legal authorization to operate Class A and/or Class B COAMs according to what kind of entertainment devices the business intends to install:
- Class A licenses authorize businesses to operate machines that accept coins or bills in exchange for an interactive experience, such as a kiddie ride, claw machine, pinball game, pool table, or jukebox.
- Class B licenses are for “redemption” or “skill-based” devices, in which a player can accrue points on the machine and then carry those points over to subsequent plays. Depending on their score, they are then rewarded with a ticket that they can trade in for various rewards that comply with the GLC Rules & Regulations Manual, which might include additional game plays, in-store merchandise, COAM lottery-branded gift cards, Georgia lottery tickets, and gasoline.
Only a Class B license is required for those who plan to operate both Class A and Class B COAMs.
Review the Financial Requirements
It doesn’t cost a lot of money to get started with COAMs, but you’ll need some level of investment.
Class B redemption machines require a $125 annual fee per machine, in addition to the $100 yearly payment-processing and administrative fee due when you submit or renew your application. Retail locations are limited to nine machines, so business owners can expect to pay anywhere from $225 to $1,225 annually.
Georgia business owners who work with INAMAX can recoup that cost (and then some) in no time. Our partners average $5,000 in revenue monthly!
Ensure All Tax Liabilities Are Paid
Before being eligible to apply for a GA COAM license, individuals must fulfill all taxes and other state financial obligations. Business owners can find out whether they’re missing any tax returns or have tax liabilities by contacting the Georgia Department of Revenue. Once all state financial obligations are met, the application process can continue.
Set Up an Account on the Georgia COAM Licensing and Reporting Website
The first step toward obtaining a GA COAM license is registering through the COAM website, as the online portal is the only way to apply. To create an account:
- Go to https://wwww.gacoam.com and click “Register” in the top right.
- Fill out the registration form with the name, email, username, password, and security questions. Click “Create Account.”
- Wait for an activation email containing a link and an activation code.
- Click the link, input the activation code, and click “Activate.”
Once the account is set up, users can access their application by clicking the “Login” button from the GA COAM homepage.
Gather the Appropriate Documentation
During the application process, the GLC asks business owners to provide the following information:
- Federal Employer Identification Number (FEIN)
- State Taxpayer Identification Number (STI)
- Alcohol License, if applicable
- Georgia Lottery Retailer Number, if applicable
- Driver’s License & Social Security Number to verify lawful presence in the United States
Because you’ll need to upload a copy of your driver’s license, GA COAM recommends taking photos of the front and back and emailing them to yourself to submit as an attachment along with your application.
Prepare for the Class B Location Compliance Check
Before you’re granted a Class B Location license, the GLC reviews your application and conducts any necessary compliance checks to ensure that you meet all eligibility requirements. That process may require applicants to submit additional information, and the more timely you are in providing it, the faster you can start earning passive revenue with skills-based game machines.
Be prepared for the following requests:
- Criminal background checks for all owners, officers, and shareholders to check for any past or pending legal issues that may prohibit licensure.
- Credit checks for all owners, officers, and shareholders to mitigate the financial risk for the COAM. Depending on their determination of creditworthiness, potential licensees may be required to provide a refundable security deposit of $2,500-7,500.
- A Georgia Department of Revenue check for any outstanding liabilities, address or owner discrepancies, and missing tax returns.
- A Georgia Secretary of State check to ensure the business is in good standing and that all owners/officers are up-to-date.
- A Systematic Alien Verification for Entitlements (SAVE) check for the immigration status of applications.
- A copy of a valid and current form of identification for all owners, officers, and shareholders, which can include a driver’s license, state ID, US Armed Forces ID, signed US passport, or US Resident Alien card.
- A review of any outstanding COAM fines.
Business owners should only provide correct and true information on all applications and for all officers, owners, and shareholders.
If the GCL finds that any provided information is incorrect, such as the use of a home address instead of a business address or the use of an accountant’s contact information rather than the owner of record, it may result in them denying a COAM application.
Partner With INAMAX, the Industry-Leading GA COAM Master License Holder
Just like with any aspect of running your business, the right partner can make all the difference. At INAMAX Powered by Ultra, we’re experts in the GA COAM licensure process and will help you every step of the way, all while honoring our commitment to compliance with the Georgia Lottery Corporation’s COAM regulations.
Once you’ve received your GA COAM license, you’ll have access to our industry-leading service and support, with technicians available to resolve tickets within 4-6 hours. And, thanks to our proprietary Titan Redemption System, you can deliver a frictionless route gaming experience that performs 17% better than our competitor’s clients, ensuring you maximize your profits while minimizing the effort spent on managing game operations.
Learn more about COAM gaming and the potential growth for your business by contacting INAMAX today!