For small, independent location business owners in Georgia, the coin-operated amusement machine (COAM) industry represents an exciting and promising opportunity for an additional stream of revenue. However, as many businesses with Class B COAMs already know, one of the overarching challenges involves redeeming winnings.
This is because most players prefer cash, but cash payouts are illegal and can lead to severe legal repercussions for businesses—they don’t just lose their COAM license, they lose their whole business.
Fortunately, in an effort to better support local businesses and reduce illegal activities, the state of Georgia has proposed a new bill: The 2024 COAM Reform Bill, or House Bill 353. Particularly of note is Section 5, which introduces an innovative amendment regarding options for players to redeem their winnings in the form of a gift card.
While Bill 353 has been passed by the House and Senate, it’s still awaiting Governor Kemp’s signature. So, in the meantime, businesses interested in Class B COAM gift cards can apply to participate in Georgia’s COAM Gift Card Program.
If you’re a small, independent location owner in Georgia with Class B COAMs, you can use the following steps to guide you through the program’s application process.
What Is the COAM Gift Card Program?
Backed by the Georgia Lottery Corporation (GLC), this innovative new program empowers businesses with COAM Class B licenses to provide winnings via a Georgia Lottery-branded gift card. The gift cards are supplied by InComm, a leading payment company and provider of gift cards.
As alluded to above, this innovative new program aims to combat illegal payouts by incentivizing COAM players to redeem and spend their winnings via a gift card at any establishment that accepts Visa or Mastercard.
How to Register for the COAM Gift Card Program
To participate in this program, both COAM Class B license-holding parties must meet eligibility requirements. The business owner and the master license holder (MLH) must possess an approved 2023 Class B COAM license and be in good standing with the GLC.
It’s extremely important to understand the exclusivity of the COAM Gift Card Program at this stage. Only COAM Class B MLHs are eligible to register. This means that business owners with a Class B location license have a unique opportunity to discuss participation with their MLH.
Once eligibility is confirmed, the MLH can proceed with the registration process on behalf of the location license holder. Once the application is approved, the MLH will receive detailed instructions on implementing and managing the gift card system at participating Class B locations.
Step 1: Platform Registration
If you’re a location license holder, your first step is to contact your COAM master license holder and ask them to register as a reseller of the Georgia Lottery’s COAM Gift Card. You can expect registration processing time to take about two business days.
Remember, it’s essential to partner with the right MLH to ensure both a smooth transition into the Gift Card Program and a reliable, positive experience with the program itself.
If your MLH is INAMAX, you’re in luck! INAMAX was at the forefront of entering the market with the necessary technology to support COAM gift cards and clerkless solutions. Not only is INAMAX conveniently already registered on the platform, but INAMAX also offers the proprietary Titan Redemption System as well as a patent-pending all-in-one solution that redeems COAM gift cards right on the game machine. This means your business won’t need a kiosk, freeing up valuable store space for more products.
Step 2: Paperwork and Signing the Contract
After your MLH is registered on the COAM Gift Card platform, InComm will send them paperwork and a contract to sign. Depending on how quickly your MLH completes the paperwork and sends it back to InComm, you can expect processing to generally take somewhere between two and four weeks.
Step 3: Wait to Onboard and Begin the Program
Once InComm has processed your MLH’s contract and paperwork, your MLH will be added to a first-come-first-serve schedule to receive COAM gift cards, which they can then distribute to their Class B COAM location owners like you.
Depending on the COAM Gift Card Program’s backlog of interested participants, you can expect your MLH to receive their gift cards as soon as about two weeks.
However, it may take much longer for your MLH to receive their stock of gift cards. These delays are due to global supply chain issues, limited gift card inventory, and the significant volume of interest in the program from COAM Class B license holders.
Apply to Georgia’s COAM Gift Card Program Today
It’s not surprising that Class B COAM location license holders and master license holders alike are excited about Georgia’s Gift Card Program. And if the Governor passes Bill 353, the gift card redemption option will be here to stay.
Now is the time to do your part and express your interest and support in both the program and the bill by registering for the COAM Gift Card Program!