Reloadable Gift Cards Are Coming to Georgia COAMs on July 1 — Here's How They Work

When Georgia COAM operators think about July 1, 2026, they typically think about one thing: cash payouts ending. And that's accurate — after June 30, any Class B operator making cash payouts is in direct violation of Georgia law. But there's a second change taking effect on the same date that's received far less attention.

Starting July 1, reloadable gift cards become a legal payout method for both Class A and Class B COAMs in Georgia. That's a meaningful operational shift. Right now, during the HB 353 transition period that began May 6, 2024, only non-reloadable cards are permitted. On July 1, that changes — and the difference between a reloadable and non-reloadable card is not cosmetic. It affects your infrastructure, your staff processes, and the experience you offer returning players.

With 63 days until the deadline, here's what operators need to understand.

Non-Reloadable vs. Reloadable: The Practical Difference

The distinction matters more than it might seem at first.

A non-reloadable gift card is issued once with a fixed value — exactly what the player won. The player takes the card, spends it, and when the balance hits zero, the card is done. If they win again on a future visit, they receive a new card.

A reloadable gift card maintains a running balance. A player can return to the same location, win again, and add value to the card they already have rather than receiving a new one each visit. Over time, a regular player might carry a single card that accumulates and is spent across many sessions at your location.

For operators, reloadable cards have real operational implications. Your payout system needs to support top-up transactions, not just initial card issuance. Staff need to know how to load an existing card versus issuing a new one. And the card — because it's persistent — needs a management process for lost or damaged cards.

None of that is insurmountable. But it requires deliberate setup, not just having a card reader on the counter.

What O.C.G.A. § 50-27-71.1 Actually Requires

Regardless of card type, the rules under Georgia Code § 50-27-71.1 govern every COAM gift card transaction. These apply equally to reloadable and non-reloadable cards, and they are non-negotiable:

1. Won Value Only

Cards can only be loaded or reloaded with value that was won through successful play of a COAM at your location. You cannot load a card with a "bonus," a promotional amount, or any value not directly tied to won credits. Each load must correspond to actual COAM winnings.

2. Location-Specific Loading

Cards can only be loaded or reloaded at the place where the COAM is played. A player cannot take their reloadable card to a different COAM location and add their winnings from there. Every load ties to a specific licensed location.

This rule is significant for multi-location operators. If a player is a regular at two of your locations, they cannot consolidate their winnings onto one card across both sites. Each location's winnings load onto that location's cards.

3. No Cash Exchanges

Cards cannot be exchanged for cash, change, or currency. This applies at initial issuance and at every subsequent reload. A player who holds a reloadable card and asks for cash instead is making a request your staff must decline — not as a policy choice, but as a statutory requirement.

This is also where the GLC's active enforcement posture in 2026 matters. The Georgia Lottery Corporation has documented complaints against Location License Holders who "discount" prize redemptions — reducing the payout value, charging fees, or imposing commissions. That practice is a violation regardless of whether the payout is cash or gift card. With COAM inspectors actively fielding these complaints, your processes need to be clean before July 1.

4. Who Can Load a Card

Cards can be loaded by the location licensee, their employees, or an approved self-service gift card redemption device (kiosk). Players cannot load their own cards. This is a deliberate design — it ensures every load is authorized by the licensee and tied to documented COAM winnings, which supports the audit trail the GLC expects.

5. Use Is Not Location-Restricted

While loading is restricted to the location where the COAM was played, spending is not. Once loaded, a gift card works like any other prepaid card — players can use it at grocery stores, gas stations, restaurants, and anywhere the card network is accepted. This is a genuine player benefit, and one worth communicating clearly when you make the transition.

Class A vs. Class B: Different Rules, Same New Option

Both machine classes gain access to reloadable gift cards on July 1, but the surrounding rule sets differ in ways operators need to keep straight — especially if you run both types at the same location.

Class B: A Closed List

For Class B COAMs — the skill-game redemption devices that make up the core of Georgia's regulated COAM market — the July 1 redemption list is exhaustive and closed. The only legal forms of redemption will be:

• Replays
• Georgia Lottery products
• Non-reloadable gift cards
• Reloadable gift cards

Cash is not on that list. Neither is merchandise, store credit, or any other form of value. Any Class B operator still making cash payouts after June 30 is in direct violation of Georgia law and exposed to license suspension or revocation.

Class A: More Flexibility

Class A machines — mechanical amusement devices like cranes and coin pushers — operate under a slightly broader framework. Starting July 1, legal redemption includes replays, non-reloadable and reloadable gift cards, plus "any other legal form of redemption" — meaning merchandise, toys, novelties, and similar prizes remain permissible.

It's also worth noting that the 2024 HB 353 legislation increased the Class A prize limit from $5 to $50, putting Georgia in line with most other states. That expanded prize potential makes the new reloadable card option more meaningful for Class A operators who are now running higher-value prizes.

For locations running both machine classes, you need separate redemption processes: Class B machines must use gift cards or lottery products, while Class A machines can use either cards or physical prizes. A payout system that handles both scenarios cleanly — without staff confusion about which rule applies to which machine — is important to get right before July 1.

Which Card Type Is Right for Your Location?

The choice between non-reloadable and reloadable cards isn't purely technical — it's a business decision based on your player base and operational complexity.

Reloadable cards tend to make more sense when:

• You have returning regulars. Neighborhood convenience stores, local bars, and any location with a consistent customer base benefit most from reloadable cards. Regular players build a balance over time without accumulating a stack of depleted cards.
• Your players care about the experience. A persistent card is simply more convenient. Players don't need to keep track of multiple small-balance cards or ask staff for a new one each session.
• You have staff capacity to manage the system. Reloadable cards require slightly more staff attention — knowing how to top up, handle card replacements, and maintain the loading log.

Non-reloadable cards may be simpler when:

• Your location has high turnover or transient traffic. For highway rest stops, tourist-heavy locations, or venues where players rarely return, the accumulating-balance benefit of reloadable cards matters less.
• Simplicity is the priority. Non-reloadable cards are a straightforward transaction: win, issue card, done. There's less system infrastructure required and less risk of staff error.

Many operators will ultimately offer both — issuing non-reloadable cards to new or infrequent players and reloadable cards to regulars who return often enough to benefit. Your payout system needs to support whichever approach fits your location.

The Setup Timeline: 63 Days Is Real, but Not Generous

As of April 29, 2026, the July 1 deadline is 63 days away. That sounds like plenty of time. But the actual timeline from "I need to get compliant" to "my system is installed and my staff is trained" is shorter than most operators expect:

• Provider selection and outreach: 3–7 days
• Broker agreement issued and signed: 2–4 business days after initial contact
• Installation scheduling: 1–2 weeks depending on provider capacity and geographic location
• Physical installation and system setup: 1–3 days on-site
• Staff training: 1–3 days
• Testing and go-live buffer: 1 week

Running those numbers: an operator who begins today and moves without delays is looking at a mid-to-late May go-live, which is tight but achievable. An operator who waits until June is cutting it very close and will be competing with every other late-mover for provider installation slots.

The Georgia Lottery Corporation has been explicit in its guidance to Location License Holders: register now to ensure you have cards in place before July 1. The providers amplifying that message are the ones who have seen demand surge compress their installation calendars in previous regulatory transitions.

Compliance Is More Than Having a Card

A common mistake is treating "compliance" as synonymous with "having a gift card on hand." That's necessary but not sufficient. The GLC's compliance framework looks at the entire payout process:

• Is the card loaded with exactly the won amount — no more, no less?
• Is every load performed by an authorized person or device?
• Is there a transaction log showing when each card was loaded, for how much, and by whom?
• Is the location ensuring no fees, commissions, or "discounts" are applied to redemptions?
• Are staff trained on what to do if a player requests a cash exchange?

For reloadable cards specifically, the audit trail requirement is especially important. Because a single card can be loaded multiple times across multiple visits, each transaction needs to be logged individually — including the machine played, the amount won, and the load transaction. A proper payout system handles this automatically; a manual process creates gaps that become compliance problems.

For a complete overview of the compliance steps, see our Georgia COAM Compliance Checklist.

The Bottom Line

July 1 is simultaneously a deadline and a starting line. The deadline: cash payouts end, and there's no grace period. The starting line: reloadable gift cards become available, opening a payout option that's genuinely better for returning players and that creates a more modern, data-rich operation.

The operators who approach July 1 as only a deadline — scrambling to get any compliant system in place — will likely end up with something that works technically but misses the operational opportunity. The operators who approach it as both will implement reloadable cards thoughtfully, train their staff properly, and emerge from the transition with a payout system that improves their business rather than just checking a compliance box.

Sixty-three days is enough time to do this right. It is not enough time to delay.