Georgia COAM Rules in 2026
The rules every Georgia store with skill game machines must follow now: what winnings can be redeemed for, how revenue is split, and the limits on machines and receipts.
Last updated October 2026. Based on HB 353 (signed May 6, 2024) and O.C.G.A. Title 50, Chapter 27, Article 3. This page is general information, not legal advice. Your master licensee and the Georgia Lottery COAM Division have the latest guidance.
Redemption: replays, lottery products and gift cards only
HB 353 added a new section to Georgia law (O.C.G.A. 50-27-71.1). Since July 1, 2026, Class B machines may only be redeemed for:
- Replays on the machine
- Georgia Lottery products
- Nonreloadable gift cards
- Reloadable gift cards
No other form of redemption is allowed. Before July 1, 2026, stores could also redeem winnings directly for merchandise and other items. That has ended. A gift card can still be spent on anything the player is legally allowed to buy, at the store or somewhere else.
Gift card rules
- The card can only hold value the player won on the machine.
- It must be loaded at the location, by the store's staff or a self-service gift card redemption device on the premises.
- It can never be exchanged for cash, change or currency.
- Self-service gift card devices may be provided by the store, the master licensee or both.
Penalties: a store that redeems anything other than replays, lottery products or gift cards gets a warning for the first violation, then civil penalties sized to the amount wrongly redeemed.
Revenue split
The Georgia Lottery collects the net receipts from every Class B machine through its central accounting system. Since May 12, 2024:
- 13% to the Georgia Lottery Corporation
- 43.5% to the location owner
- 43.5% to the Class B master licensee
Before that date the split was 10% / 45% / 45%. The store must deposit the machine proceeds into a segregated, FDIC insured account by the close of the next banking day.
The 50 percent rule
A location may not derive more than 50 percent of its gross retail receipts from Class B machines. HB 353 changed the period from monthly to quarterly. Revenue due to the master licensee or the GLC, and noncash redemption earned by players, is not counted as machine revenue. See our gross receipts rule guide and worksheet.
Machine limits and license fees
- Machines per location: up to nine Class B machines (not applicable to amusement or recreational establishments). Cities and counties may set a limit of six.
- Location license: $125 per Class B machine per year. One, two or three year licenses are available.
- Late renewal: $1,000 late fee for Class B licenses. A license expired more than 90 days cannot be renewed.
- Class A machines (no carry-over points): $25 per machine, and the noncash prize per play is capped at a $50 wholesale value.
- Who can place machines: only a Class B master licensee, under a written agreement with the store. See the master license explained.
Frequently asked questions
What can Class B skill game winnings be redeemed for in Georgia?
Since July 1, 2026, only replays, Georgia Lottery products, and reloadable or nonreloadable gift cards. No other form of redemption is allowed for Class B machines (O.C.G.A. 50-27-71.1, added by HB 353).
Can a store pay out cash, gas or merchandise for skill game winnings?
No. Cash has never been allowed. Since July 1, 2026, a store also cannot redeem winnings directly for merchandise, gas or other goods. Those can only be bought with a gift card the player won. A store that redeems anything other than replays, lottery products or gift cards gets a warning for the first violation and civil penalties after that.
Can a gift card be exchanged for cash?
No. A COAM gift card can be honored by the store but cannot be exchanged for cash, change or currency. It can only hold value the player won on the machine, and it can only be loaded at the location by the store or a self-service gift card redemption device on the premises.
What is the revenue split for Georgia COAMs?
13 percent to the Georgia Lottery Corporation, 43.5 percent to the location owner and 43.5 percent to the Class B master licensee, since May 12, 2024.
What is the 50 percent rule?
A store may not get more than 50 percent of its gross retail receipts from Class B machines. HB 353 changed the measurement from monthly to quarterly. Money owed to the master licensee or the GLC, and noncash redemption earned by players, does not count as machine revenue.
How many Class B machines can one location have?
Up to nine per business location, unless it is an amusement or recreational establishment. Local ordinances can lower the limit to six.
How much is a Georgia COAM location license?
$125 per Class B machine per year ($25 per Class A machine). Licenses can be issued for one, two or three years. A late renewal costs a $1,000 late fee for Class B, and a license expired more than 90 days cannot be renewed.