The True Cost of Non-Compliance: What Happens If You Miss the HB 353 Deadline

Some Georgia COAM operators are taking a "wait and see" approach to HB 353. Maybe the deadline will get pushed back. Maybe enforcement will be lax. Maybe it won't be that big a deal.

This is a dangerous gamble. The Georgia Lottery Commission takes compliance seriously, and the consequences of non-compliance are severe. In this post, we'll break down exactly what you're risking if you miss the July 2026 deadline.

Penalty #1: Monetary Fines

The most immediate consequence of non-compliance is financial penalties. Operators caught making cash payouts after July 2026 face fines for each violation.

These aren't slaps on the wrist. Depending on the severity and frequency of violations, fines can quickly add up to tens of thousands of dollars. For smaller operations, this alone can be devastating.

What This Means For You:

• Each cash payout after the deadline is a separate violation
• Fines accumulate quickly with high-volume operations
• Repeat violations result in escalating penalties
• Fines must be paid regardless of intent or awareness

Penalty #2: License Suspension

Beyond fines, the Georgia Lottery Commission has the authority to suspend your COAM operating license. A suspended license means you cannot legally operate your machines—period.

During suspension:

• All your machines must be shut down
• You earn zero revenue from COAM operations
• You still have ongoing costs (rent, utilities, staff)
• Your players go to competitors
• Your reputation suffers

Even a short suspension can cause lasting damage. Players who find other locations during your downtime may not come back.

Penalty #3: License Revocation

In severe cases or for repeat offenders, the ultimate penalty is permanent revocation of your COAM license. This ends your ability to operate in Georgia's COAM market entirely.

License revocation isn't just losing a piece of paper—it's losing your business. Years of building relationships, establishing locations, and developing your operation, gone.

Penalty #4: Legal Liability

Beyond regulatory penalties, non-compliance exposes you to potential legal liability. This can include:

• Civil liability – Lawsuits from players, partners, or other parties
• Criminal liability – In serious cases, potential criminal charges
• Contract violations – Breach of agreements with location owners or partners
• Insurance issues – Your insurance may not cover non-compliant operations

The Hidden Costs of Non-Compliance

Beyond the direct penalties, non-compliance carries significant hidden costs:

Reputation Damage

Word travels fast in the COAM industry. Getting flagged for non-compliance damages your reputation with location owners, partners, and players. Even after you become compliant, that reputation hit lingers.

Competitive Disadvantage

While you're dealing with compliance issues, your competitors are running smooth operations and attracting your players. The longer you're non-compliant, the more ground you lose.

Emergency Implementation Costs

If you wait until enforcement begins to scramble for a solution, you'll pay premium prices for expedited implementation. Providers have less incentive to negotiate when you're desperate.

Stress and Distraction

Dealing with regulatory issues, fines, and potential legal problems takes time and energy away from running your business. The mental cost of non-compliance shouldn't be underestimated.

"But Maybe They Won't Enforce It..."

Some operators hope that enforcement will be lax or that the deadline will be extended. This is wishful thinking for several reasons:

• The law is clear – HB 353 has specific requirements and deadlines
• Georgia Lottery has enforcement authority – They have both the power and motivation to enforce
• Digital tracking makes enforcement easy – Cash payouts will be obvious compared to compliant operations
• Industry pressure – Compliant operators will push for enforcement against non-compliant competitors

Betting your business on non-enforcement is not a strategy—it's gambling with your livelihood.

The Real Question: Is It Worth the Risk?

Let's do the math. Implementing a compliant payout system costs money—transaction fees, equipment, implementation time. But compare that to:

• Thousands in fines for a single month of violations
• Lost revenue during license suspension
• Potential permanent loss of your license
• Legal fees and liability
• Reputation damage

The cost of compliance is a predictable business expense. The cost of non-compliance is an existential threat to your operation.

What Smart Operators Are Doing

The savviest Georgia COAM operators aren't waiting to see what happens. They're:

1. Starting now – Getting compliant well before the deadline
2. Choosing proven solutions – Working with established, compliant providers
3. Training staff early – Ensuring smooth operations from day one
4. Communicating with players – Preparing their customer base for the transition
5. Using compliance as a competitive advantage – Marketing their forward-thinking approach

The Bottom Line

HB 353 compliance isn't optional—it's the law. The consequences of non-compliance are severe and can threaten your entire operation. The cost of compliance is manageable and predictable.

The question isn't whether to get compliant. It's how soon you'll start.

Every day you wait is a day closer to the deadline with less time to prepare. Don't let July 2026 catch you off guard.