In the state of Georgia, businesses hosting Coin-Operated Amusement Machines (COAMs) are held to strict regulatory standards concerning the redemption of route gaming winnings. The law is clear: Cash payouts are off-limits.
The Georgia Bureau of Investigation’s Commercial Gambling Unit warns explicitly, “Based on Georgia law, customers who play the machines may ONLY redeem credits for in-store merchandise, fuel, or lottery tickets. Redeeming credits for cash payouts is NOT LEGAL in Georgia, and violators will be prosecuted.”
We’ve outlined these mandates in an easy-to-reference guide to assist Location License holders in avoiding legal troubles while still capitalizing on skill gaming’s opportunity for business growth.
Georgia COAM Redemption and Cash Out Regulations
Georgia’s no-cash framework challenges business owners who aim to keep patrons engaged with their game rooms because their prize options are limited.
However, staying within these COAM regulations and legal boundaries cannot be overstated, as failure to comply risks financial penalties of up to $25,000, 1-5 years of imprisonment, and the potential loss of COAM, lottery, and other state licenses.
Permissible COAM Redemption Prizes
GA Code § 16-12-35 specifies, “A player may redeem accumulated tokens, vouchers, or tickets for noncash merchandise, prizes, toys, gift certificates, or novelties so long as the amount of tokens, vouchers, or tickets received does not exceed $5.00 for a single play.”
In layperson’s terms, this code allows the following, so long as the value is not more than $5 for a single play:
- Gift cards and gift certificates from the specific location in which the prize is won
- Noncash store merchandise, including fuel
- Services offered by the business
Additionally, all COAM Location Licensees can award Georgia lottery tickets per RU 13.3, though the rules vary based on whether the location is an approved lottery retailer.
For lottery retailers, both online and instant tickets at any price point are permissible prizes, so long as:
- The instant games have not expired
- None of the draws have expired for the online draw game tickets before awarding the prize
On the other hand, non-lottery retailers must purchase instant tickets from an authorized lottery retailer to award as COAM prizes. They are also responsible for:
- Maintaining records that verify the purchase occurred at an authorized lottery retailer
- Referring players to authorized lottery retailers to obtain cash payouts for instant ticket wins
Businesses participating in the Georgia COAM Gift Card Pilot Program allow for an additional means of redemption: A Georgia Lottery Corporation-branded Mastercard gift card.
Non-Permissible COAM Redemption Prizes
The list of prizes not allowed as prizes for COAM redemption includes the following:
- Cash
- Alcohol
- Firearms
- Gift cards for other businesses unless participating in the Georgia COAM Gift Card Pilot Program
- Utility payments