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 License Requirements 2025: Complete Operator Guide

Operating coin-operated amusement machines (COAMs) in Georgia requires proper licensing through the Georgia Lottery Corporation. With HB 353 changing the payout landscape, understanding your licensing requirements is more important than ever.

Types of COAM Licenses in Georgia

Georgia's COAM licensing system includes several categories:

Master License

Master licensees own and operate COAM machines, placing them at various retail locations. This is the most common license for COAM operators.

Can own unlimited machines
Contracts with location owners
Responsible for machine maintenance and compliance
Handles payout systems

Location License

Location owners who host COAM machines on their premises need this license. Common location types include:

Convenience stores
Restaurants and bars
Truck stops
Arcades
Other retail establishments

Manufacturer License

Companies that manufacture COAM machines or machine components must hold this license to sell in Georgia.

Distributor License

Entities that distribute COAM machines from manufacturers to operators need this license.

License Application Requirements

Applying for a COAM license in Georgia involves several steps:

Background Check

All applicants must pass a background check conducted by the Georgia Bureau of Investigation. This includes:

Criminal history review
Financial background check
Verification of business credentials

Financial Requirements

Master licensees must demonstrate financial stability and may need to provide:

Proof of business registration
Financial statements
Surety bond (amount varies by machine count)
Proof of insurance

Application Fees

License fees vary by type and are subject to change. Current fee structures are available through the Georgia Lottery Corporation website.

Important Note

Always verify current requirements directly with the Georgia Lottery Corporation. Regulations and fees may change, and this guide is for general informational purposes.

How HB 353 Affects Your License

HB 353 doesn't change the fundamental licensing requirements, but it does add new compliance obligations that affect license holders.

Payout Compliance

After July 1, 2026, license holders must:

Use only compliant payout methods (gift cards or lottery tickets)
Document all payouts properly
Maintain records for regulatory review

Enforcement and Penalties

Non-compliance with HB 353 can affect your license status:

First violations may result in warnings and fines
Repeated violations can lead to license suspension
Severe or persistent violations may result in license revocation

Reporting Requirements

The Georgia Lottery Corporation may require additional reporting related to payout methods. Working with a compliant payout provider like Loop Pay can help automate this reporting.

Protect Your License with Compliant Payouts

Loop Pay provides fully HB 353-compliant gift card payouts with automated reporting, helping you maintain your license in good standing.

Get Compliant Now

License Renewal Process

COAM licenses must be renewed annually. The renewal process typically includes:

Submit renewal application before expiration
Pay renewal fees
Update any changed information (locations, ownership, etc.)
Confirm continued compliance with all regulations

Renewal Timeline

Start your renewal process well before expiration—typically 60-90 days in advance. This allows time to address any issues that arise.

Common License Issues to Avoid

Operating Without Proper License

Each location where you operate machines must be properly licensed. Ensure all your locations are covered before placing machines.

Failing to Report Changes

You must report changes to:

Business ownership or structure
Location addresses
Number of machines
Key personnel

Compliance Violations

Beyond HB 353 payout requirements, ensure compliance with:

Machine placement rules
Age restrictions
Operating hour regulations
Signage requirements

Resources for Georgia COAM Operators

Stay informed through official channels:

Georgia Lottery Corporation - Primary regulatory authority
Georgia Department of Revenue - Tax-related requirements
AMOA Georgia - Industry association and advocacy

Preparing for 2026 and Beyond

As the July 2026 deadline approaches, license holders should:

Review current compliance status
Select a compliant payout provider
Train staff on new procedures
Update internal documentation
Plan for reporting requirements

The Bottom Line

Your COAM license is the foundation of your operation. Protecting it means staying current on all requirements—including the new HB 353 payout rules.

Don't let compliance issues threaten the license you've worked to obtain. Start your transition to compliant payouts now, well before the deadline.