The confusion between skilled gaming and slot machine gambling casts a long shadow over the former, unjustly lumping it with activities in which winners are determined by chance rather than the user’s ability.
It’s understandable to some extent—Class B COAMs look like slot machines, so there might be some confusion at a glance.
However, the extent of their similarities ends there, and the stigma attached to skilled gaming affects how successfully corporations can take advantage of this opportunity to quickly grow new verticals of revenue in locations where they’re still not permitted by law.
Enterprises must work with small business owners, state legislators, and the communities where their locations operate to change the narrative around skill gaming into one that more accurately reflects the reality of COAM devices and their positive economic impact.
Differentiating Between Slot Machines and COAMs
In 2013, Georgia passed Georgia Code 50-27-70, which clearly delineates the difference between a skilled game machine, also known as a Class B Coin-Operated Amusement Machine (COAM), and a traditional slot machine.
Put simply, skill game machines put the power in the player’s hand, and they’ll need to make decisions throughout gameplay that will influence the final “payout.” Then, rather than receiving a cash payout like a slot machine win, they can redeem accumulated points for a limited list of prizes: Georgia lottery tickets, food and beverages, store merchandise, fuel, and gift cards.
Slot machines, on the other hand, run on random number generators that leave winning completely to chance. The player has zero control over the outcome, and nothing they do during gameplay will alter whether they win or lose.
While Georgia’s laws are clearly defined, that’s only the case in some states, making it particularly complicated for multi-state corporations to install this low-effort revenue source across all locations.
Furthermore, this legislative vagueness leaves room for a gray area in which bad actors can benefit from COAMs without contributing back to the state economy and only furthering the perception of skilled gaming as a shady, illegal operation.
Legalized Betting Benefits the Economy
Under the rules and regulations of GA COAM license laws, customers spent $5 billion on COAM machines in 2022, directly contributing to the ongoing financial health of the state’s businesses by diversifying revenue streams and bringing in an average of $5,000 per month in each location. However, corporations and small businesses aren’t the only ones benefitting from legal skilled gaming.
In the same year, COAM operations contributed $141 million to Georgia’s HOPE Scholarship and Pre-K programs, directly impacting the education of 2,000,000 students pursuing post-secondary education and 1,600,000 4-year-olds who attended the statewide pre-kindergarten program.
Other states see similar boons to their local economies, including Virginia. During the single year that the state legalized skilled gaming, it brought in $140 million in tax revenue that went on to support educational programs, public work projects, and the businesses hosting skill games.
In Arkansas, skill games at Southland Park and Gaming, a greyhound racing track, earned $92 million during their first six months of operation after they were legalized in 2007. The 18% privilege tax saw nearly $1.7 million of that poured back into the state.
Sports betting is another example, becoming legal in the majority of US states after the federal law banning it was struck down in May 2018. As of March 2023, the economic impact of legalized betting has been massive, totaling $220 billion spent on bets. Of that, $3.6 billion went to local, state, and federal taxes.
However, a dozen states (as of June 2023) still explicitly ban all forms of wagering over the outcome of a game: Alabama, Alaska, California, Georgia, Hawaii, Idaho, Minnesota, Missouri, North Dakota, South Carolina, Texas, and Utah.
How Corporations Can Help Remove the Stigma From Skilled Gaming
For corporations to see continued community and state-level support of skilled gaming, Location license holders have to do their part to improve public perception, and that starts within retail spaces.
Proper Training for All Staff
Every staff member should be well-informed about the distinctions between skilled gaming and gambling so they can communicate effectively with customers using language that doesn’t conflate COAMs with gambling devices, such as slot machines.
Complying With Each Jurisdiction’s Legal Guidelines
Corporations should be exemplars for adherence to state laws, including the regulations around registering each machine in accordance with the GA COAM guidelines and operating within the legal framework outlined in Georgia Code 50-27-70. However, multi-state enterprises must also consider the various legislation around skilled gaming in each location, including taxation rates, licensing fees, and renewal dates.
Additionally, businesses must display all the proper signage, clearly informing patrons that games are skill-based and transparently outlining the rules concerning prize redemption and payouts.
Maintaining a Presentable Gaming Space
The way that a gaming area looks will significantly impact public perception, so it is imperative that every business keep the space clean, well-lit, and within line of sight to the patrons. Not only does this challenge the negative perception of skilled gaming, but it also reflects the enterprise’s dedication to fostering a respectable, professional gaming community.
Selecting a Reputable Master License Holder
To operate with confidence that skilled gaming operations align with their values and brand integrity, businesses must partner with a Master License holder who shares their commitment to ethical practices and legal compliance. While the stigma may never completely disappear, this level of transparency between all parties can begin to change minds and solidify skilled gaming as a legitimate form of diversified income.
At INAMAX, we strive to be the best in the industry by working with our partners through planning, installation, reporting, bookkeeping, and service, all while remaining in complete compliance with the law in every jurisdiction. Our Culture of Compliance and Culture of Support reflects our commitment to helping our partners succeed and changing the conversation about skilled gaming to one that more accurately reflects its value to businesses and communities.
Contact us today to learn more about our work with chain enterprises and how we’ve helped top retailers bring in an average of $5,000 per month in each of their locations.