HB 353 Explained: What Georgia COAM Operators Need to Know

If you operate coin-operated amusement machines (COAM) in Georgia, House Bill 353 is about to change everything about how you pay out winnings. Starting July 2026, the cash payouts that have been standard in the industry will no longer be legal.

This isn't a small regulatory tweak—it's a fundamental shift in how Georgia's COAM industry operates. In this post, we'll break down exactly what HB 353 means for your business, what you need to do to comply, and how to make the transition as smooth as possible.

What is HB 353?

House Bill 353 is Georgia legislation that restructures how COAM operators can distribute winnings to players. The bill was passed to bring greater oversight, transparency, and regulation to the state's skill game industry.

The key provision that affects operators: after July 2026, cash payouts for COAM winnings will be prohibited. Instead, operators must use one of two compliant payout methods:

• Gift cards (including prepaid Visa/Mastercard debit cards)
• Georgia Lottery tickets

This applies to all Class A and Class B machines operating under Georgia Lottery oversight.

Why Did Georgia Pass This Law?

The Georgia legislature had several motivations for passing HB 353:

• Improved tracking and reporting – Digital payments create automatic audit trails
• Tax compliance – Gift card transactions are easier to track for tax purposes
• Consumer protection – Reduces potential for disputes over cash payouts
• Industry legitimization – Moves the industry toward more regulated payment infrastructure

Who Does HB 353 Affect?

The law impacts everyone involved in Georgia's COAM ecosystem:

Location Owners

If you have COAM machines in your convenience store, restaurant, bar, or retail location, you'll need a compliant payout system. This might mean installing a kiosk, training staff on gift card loading, or working with your master licensee to implement a solution.

Master Licensees

Companies that manage machines across multiple locations have the most work to do. You'll need to ensure all your locations are compliant, potentially update your CMS systems, and may need to renegotiate contracts with location owners.

Players

While players don't have compliance obligations, they'll experience the change directly. Instead of walking away with cash, they'll receive a gift card that can be used anywhere Visa/Mastercard is accepted (if using that payout method).

The July 2026 Deadline

Mark your calendar: July 2026 is when cash payouts become illegal. After this date, any operator still paying out cash will be in violation of Georgia law.

This might seem like plenty of time, but consider what's involved in transitioning:

• Evaluating and selecting a payment provider
• Negotiating contracts and pricing
• Installing equipment or integrating systems
• Training staff on new procedures
• Communicating changes to players
• Working out any technical issues

Operators who wait until early 2026 to start this process risk missing the deadline and facing penalties.

What Are Your Options?

HB 353 gives you two choices for compliant payouts:

Option 1: Gift Cards (Recommended)

Prepaid Visa/Mastercard gift cards are the preferred choice for most operators. Players can use them anywhere those cards are accepted—in stores, online, at ATMs (where permitted), and more. They offer flexibility that players appreciate and create automatic compliance records.

Option 2: Lottery Tickets

You can also pay out winnings as Georgia Lottery tickets. However, this limits what players can do with their winnings and requires maintaining physical ticket inventory.

Key Requirements Under HB 353

Beyond just switching from cash to gift cards, HB 353 has several requirements operators must meet:

• Statewide redemption – Gift cards must be redeemable across Georgia, not just at the winning location
• Licensed provider – You must use a properly licensed money transmitter for gift card services
• Reporting – All payouts must be tracked and reported to Georgia Lottery
• Record keeping – Maintain detailed transaction records for audit purposes

What Happens If You Don't Comply?

The Georgia Lottery Commission takes compliance seriously. Operators who continue cash payouts after July 2026 face:

• Monetary fines for each violation
• Suspension of COAM operating license
• Potential revocation of operating privileges
• Civil and criminal liability

How to Prepare Your Operation

Here's what we recommend for a smooth transition:

1. Start now – Don't wait until 2026 to begin the process
2. Assess your needs – How many machines? What's your payout volume? Do you need kiosks or staff-assisted loading?
3. Evaluate providers – Look for licensed, compliant solutions with good support
4. Plan your rollout – Create a timeline for implementation and staff training
5. Communicate with players – Let regular players know about the upcoming change

The Bottom Line

HB 353 is coming whether you're ready or not. The operators who start preparing now will have a competitive advantage—they'll be fully compliant, their staff will be trained, and their players will be comfortable with the new system by the time the deadline hits.

Those who wait risk scrambling at the last minute, dealing with implementation issues under pressure, and potentially facing penalties for non-compliance.

The choice is yours, but the deadline isn't moving.