Update to the Georgia COAM Gift Card Program Legislation
The COAM Gift Card Program is the hottest topic in Georgia right now – and for good reason! Coin-operated amusement machines (COAMs) have become a profitable fixture in many Georgia businesses, offering entertainment and a chance to win prizes for customers. However, prize redemption previously had limitations, with players restricted to choosing merchandise on-site only.
Now, there’s a significant change in redemption options: the Georgia COAM Gift Card Program has transitioned from a pilot program to a feature that’s here to stay. This move brings exciting benefits for both businesses and players, which fosters a more legitimate and flexible COAM experience in Georgia.
From Pilot to Permanent: A Legislative Victory
The Georgia COAM Gift Card Program began as a pilot program in 2021 with the aim of evaluating the sustainability of allowing gift cards as a form of prize redemption for COAM machines. The COAM Gift Card program has had immediate success, which paved the way for the recent legislation decision to make the program permanent. Georgia House Bill 353 also:
- Defines key terms related to COAM operations
- Introduces multi-year licenses for COAM operators
- Sets limits on the value of non-cash prizes
- Enables self-service redemption devices under specific conditions
- Establishes procedures for COAM auctions
- Mandates quarterly reports on COAM operations
- Clarifies that specific practices by COAM operators are not unfair competition
Key Benefits of COAM Gift Card Program
The new COAM Gift Card legislation marks a significant victory for the COAM industry. Here are some of the key benefits:
Increased Legitimacy and Regulation:
The legislation brings COAM operations under close scrutiny, requiring the Georgia Lottery Commission (GLC) to adhere to standard procedures for regulation adoption. This helps create a more transparent and accountable environment for businesses and players alike.
Discouraging Illegal Cash Payouts:
By allowing gift cards as a legitimate form of redemption, the legislation discourages the illicit practice of offering cash prizes. Above all, this protects both businesses and players from potential legal ramifications.
Provides Players with More Flexibility and Purchasing Power:
Players can now redeem their winnings for gift cards, granting them greater flexibility and purchasing power beyond the limitations of on-site merchandise. Because of this flexibility, the overall player experience is signficantly enhanced and incentivizes more participation.
Benefits for Businesses: A Win-Win Situation
The new legislation regarding the Georgia COAM Gift Card Program promises benefits to all, leading to satisfied customers and a boost to your bottom line. Here are some of the positive changes it brings with it:
Streamlined Prize Redemption Process:
Gift cards eliminate the need for businesses to manage a vast inventory of merchandise for prize redemption. This simplifies the redemption process, saving you valuable time, resources, and space. Imagine the ease of handling a single gift card instead of juggling various merchandise options.
Reduced Risk of Non-Compliance with Regulations:
The new legislation provides clear guidelines for COAM operations, minimizing the risk of accidentally falling out of compliance. This offers more peace mind for business owners, allowing you to focus on running your business without worrying about non-compliance.
Potentially Attracting New Customers:
The gift card redemption option adds a level of appeal to your COAM offerings. Players want more flexibility and broader purchasing power with their winnings. In states that offer cash redemption, there is increased game play. With the COAM Gift Card offering the flexibility and spending power similar to cash, there is already increased foot traffic and revenue generation.
Additional Benefits for Players
The Georgia COAM Gift Card Program isn’t just good news for businesses. Players win big, too! Here’s how this change allows players to get more out of their COAM experience:
Increased Purchasing Power Beyond Merchandise:
No longer limited to the selection of on-site merchandise, players can now redeem their winnings for gift cards. This gives them many more purchasing options, allowing them to choose items they truly want, when they want.
More Freedom and Flexibility in Prize Usage:
Gift cards offer players the freedom to use their winnings wherever the gift card is accepted. This flexibility empowers them to make purchases that align with their personal preferences, whether it’s treating themselves to a nice meal, getting a new outfit, or stocking up on essentials.
A Better Overall COAM Experience:
The ability to redeem winnings for something they truly value adds a layer of satisfaction and excitement to the COAM experience. Players are more likely to feel rewarded for their gameplay, potentially leading to increased engagement and enjoyment.
A Brighter Future for Georgia COAMs: The Permanent Gift Card Advantage
The Georgia COAM Gift Card Program‘s transition from pilot to permanent status marks a significant step forward in the industry. This legislative victory brings a wave of positive changes for both businesses and players. Businesses benefit from streamlined operations, reduced compliance risks, and the potential to attract new customers. Players gain increased purchasing power, greater flexibility in redeeming prizes, and a better COAM experience overall.
Here at Inamax, we are committed to supporting a thriving COAM industry in Georgia. As we navigate this exciting new chapter, we are here to provide resources and support to businesses. For any questions or guidance regarding the GA COAM Gift Card Program and navigating the new regulations, call us at (770) 449-0400 ext. 700 or fill out our convenient contact form.