What is HB 353 and how does it affect COAM operators?

HB 353 is Georgia legislation requiring COAM operators to transition from cash payouts to gift cards or lottery tickets by July 2026. Loop Pay provides compliant Visa/Mastercard gift card payouts that meet all HB 353 requirements.

When do COAM operators need to be compliant with HB 353?

The deadline for HB 353 compliance is July 2026. After this date, cash payouts will no longer be legal for COAM operations in Georgia.

How do Loop Pay gift card payouts work?

Players win on COAM machines, and winnings are loaded onto a Loop Pay Visa/Mastercard via kiosk or staff. Players can then redeem their gift card at any participating location across Georgia.

Is Loop Pay compliant with Georgia Lottery COAM regulations?

Yes, Loop Pay is fully compliant with HB 353 and Georgia Lottery COAM regulations. We handle all reporting and compliance requirements so operators can focus on their business.

Georgia COAM's Double Deadline: License Renewal AND Gift Card Compliance Converge in 55 Days

Most Georgia COAM operators know about July 1, 2026. That's the date when cash payouts become illegal under HB 353, and gift cards become the only compliant way to pay out Class B winnings. Operators have been preparing for it — some urgently, some not urgently enough.

What's less widely discussed is that a second major deadline lands just one day earlier. As of May 4, 2026, the Georgia Lottery Corporation's 2027 license renewal window is open. Operators who renew by June 30 pay no late fee. Those who wait until July 1 or later will owe a non-refundable late fee of $1,000 per Class B Location, Class B Master, Distributor, and Manufacturer license — or $100 per Class A Location and Class A Master license. After September 28, 2026, renewals close entirely and you cannot legally operate COAMs for the remainder of the period.

That means the same stretch of days — the last few weeks of June — is when operators need to finalize their renewal paperwork and get gift card payout systems live and tested. For operators managing multiple locations, this is a significant coordination challenge.

Understanding the License Renewal Timeline

Georgia COAM licenses run on an annual cycle from July 1 to June 30. The renewal window for the 2027 license year (July 1, 2026 – June 30, 2027) opened on May 4, 2026. Here's how the dates break down:

May 4 – June 30, 2026: Standard renewal period. No late fee.
July 1 – September 28, 2026: Late renewal period. Non-refundable $1,000 fee for Class B Location, Class B Master, Distributor, and Manufacturer licenses; $100 for Class A Location and Class A Master licenses.
After September 28, 2026: Renewals close. You cannot operate COAMs for the remainder of the 2027 license year.

Operators who submitted a Multiple Year Licenses Application and remitted payment to the GLC will receive an email by June 2, 2026, with instructions on the next steps to receive their 2027 license. If you haven't checked whether you're on a multi-year license, now is the time.

What Changes on July 1, 2026

July 1, 2026 is not just a licensing milestone — it's the enforcement date for HB 353's payout mandate. Under Georgia law, the rules differ by machine class:

Class A Machines

Legal forms of redemption beginning July 1, 2026, will include replays, nonreloadable and reloadable gift cards, and any other form of redemption allowed by law or authorized by the Georgia Lottery Corporation. Class A machines (prize limit raised to $50 under HB 353) have somewhat more flexibility, but cash payouts are still phased out as the sole redemption method in practice.

Class B Machines

This is where the mandate is strictest. Beginning July 1, 2026, only replays, lottery products, and nonreloadable and reloadable gift cards are legal forms of redemption for Class B machines — and no other form of redemption shall be allowed. Cash is gone. Full stop. Gift cards issued for COAM payouts can only be loaded or reloaded at the location where the machine is played, whether by the licensee, an employee, or a self-service gift card redemption kiosk.

The Convergence Risk

An operator who waits until late June to handle gift card compliance will be doing that work at exactly the same time they need to complete license renewal. If either task slips, they face a $1,000 late fee, operating without a valid license, or both.

A New Administrative Change You May Have Missed

On top of these two deadlines, the GLC also changed how EFT Authorization Forms must be submitted. As of February 2026, EFT forms are no longer accepted by fax or email. They must now be uploaded directly through the COAM website at gacoam.com.

The process: log in at gacoam.com with your email and password, navigate to Account > Upload Documents, select your business from the dropdown, choose EFT Authorization Form as the document type, and upload the file. Forms submitted after 12:00 PM EST on Fridays are processed the next business day. If you're still submitting EFT forms by fax or email, they're no longer being accepted — which could affect your license renewal if the GLC doesn't have a valid EFT form on file.

Questions on the EFT process can be directed to the Retailer Services COAM Helpline at 1-800-746-8546 (Option 6 & 2).

More Transparency in GLC Rulemaking Going Forward

One positive development for the industry: HB 74 restored COAM rulemaking under the Georgia Administrative Procedure Act (APA). This means the GLC must now publish proposed COAM rules for public comment and allow the legislature to review adopted regulations before they take effect. Previously, the GLC's COAM division had operated with an exemption from the APA, limiting operators' ability to weigh in on new rules.

Representative Phillip Powell, who championed HB 74, cited the need for transparency for affected businesses. For COAM operators, this means future regulatory changes will come with advance notice and a comment window — giving the industry more runway to adapt. It's a meaningful protection as the sector transitions to a fully gift-card-based payout model.

Managing Both Deadlines: A Practical Game Plan

With 55 days until both deadlines converge, here's how to structure the work:

This Week (Early May)

Verify your EFT Authorization Form is on file at gacoam.com — not submitted by fax or email, which are no longer accepted
Check whether you hold a Multiple Year License (email from GLC arrives by June 2 with next steps)
If you don't have a gift card payout solution contracted, start that process immediately — implementation timelines vary by provider

May 15 – June 1

Begin the 2027 license renewal application at gacoam.com — don't leave this for the final week
Confirm your gift card provider's go-live timeline and lock in training dates for staff
If deploying a kiosk, confirm installation scheduling with your vendor

June 2 – June 15

Complete renewal applications for all locations — Class B Location, Class B Master, Distributor, and Manufacturer licenses all carry the $1,000 late fee if not submitted by June 30
Run a soft launch of your gift card payout system and test the full payout flow with real cards
Train all staff who will handle gift card loading

June 16 – June 30

Confirm all renewals are submitted and accepted by the GLC
Your gift card system should be fully live and tested — June 30 is the last full day of cash payouts being technically in a gray zone
Post player-facing signage explaining the July 1 change

July 1, 2026

Gift card payouts go live exclusively for Class B machines. Cash is no longer a legal form of redemption.
Your 2027 license is valid. You're operating cleanly on both fronts.

Don't Let Compliance Fall Through the Cracks

Loop Pay helps Georgia COAM operators get gift card payouts live quickly — so you can check that box and focus on license renewal without scrambling to do both at the last minute.

Get a Compliance Assessment

What Happens If You Miss Either Deadline?

Missing the June 30 renewal deadline doesn't immediately shut you down — you have until September 28 to renew, but you'll pay a minimum of $1,000 per Class B license in non-refundable late fees. For operators with multiple Class B locations, those fees stack fast.

Missing the July 1 payout mandate is more severe. Operating a Class B machine with cash payouts after July 1 is a direct violation of HB 353. The Georgia Lottery Commission has enforcement authority and can levy fines, suspend your COAM license, or — in repeat cases — revoke it entirely. Unlike a late renewal fee, enforcement actions can end your operation permanently.

There is also an interaction risk: if an enforcement action against your payout practices leads to license suspension, your renewal becomes moot until the suspension is lifted. The safest path is to treat both deadlines with equal urgency.

For Master Licensees Managing Multiple Locations

The coordination challenge is magnified for master licensees overseeing many sites. Each Class B Location License carries its own renewal requirement and potential late fee. A portfolio of 10 Class B locations that misses the June 30 deadline faces up to $10,000 in non-refundable late fees before a single gift card compliance violation is even considered.

If you manage multiple locations, build a tracking spreadsheet now: list every location, its license number, renewal status, and gift card go-live status. Assign ownership of each renewal and schedule weekly check-ins through June. For gift card compliance, a staged rollout — starting with highest-volume locations in May and completing all sites by June 15 — gives you buffer before both deadlines hit.

Read our Master Licensee's Guide to HB 353 for a deeper look at managing compliance across a multi-location portfolio.

The Bottom Line

The next 55 days are the most consequential stretch in recent Georgia COAM history. Two independent compliance obligations — one administrative, one operational — land within 24 hours of each other. Operators who plan for both now will clear both cleanly.

Those who focus only on gift card compliance and overlook the renewal window risk arriving at July 1 fully payout-compliant but $1,000 poorer per license — or worse, in a scramble during the most important operational transition the industry has seen. And those who focus only on renewal while putting off the gift card transition will face enforcement on July 2 with a freshly renewed license that's immediately at risk of suspension.

Handle both. Start this week.