1What Are COAM Gift Card Payouts?
COAM gift card payouts are the modern, HB 353-compliant method of distributing winnings from Coin Operated Amusement Machines (COAM) in Georgia. Under the new regulations effective July 2026, cash payouts are no longer permitted.
Instead of receiving cash, players now get their winnings loaded onto prepaid Visa or Mastercard gift cards. These aren't store-specific gift cards – they're universal payment cards accepted anywhere Visa or Mastercard is taken, including:
- Grocery stores and supermarkets
- Gas stations
- Restaurants
- Online retailers
- Bill payments
- ATM withdrawals (where permitted)
The HB 353 Context
Georgia's House Bill 353 mandates that all COAM operators transition from cash payouts to either gift cards or Georgia Lottery tickets by July 2026. Gift cards have emerged as the preferred option due to their flexibility and player preference.
2How Gift Card Payouts Work
The gift card payout process is straightforward and designed to be as seamless as cash payouts were:
Step-by-Step Process
Player Wins
Player wins on a Class A or Class B COAM machine. The machine displays their winnings total just like before.
Payout Request
Player requests payout either at a self-service kiosk or from staff. They provide their Loop Pay card or phone number (for first-time players, a new card is issued instantly).
Instant Loading
Winnings are loaded onto the player's card in seconds. The exact amount is credited to their balance.
Spend Anywhere
Player can immediately use their card anywhere Visa/Mastercard is accepted across Georgia and beyond.
Automatic Compliance
All transactions are automatically logged and reported to Georgia Lottery for compliance. No manual paperwork required.
3Types of Gift Card Systems
COAM operators have several options for how they implement gift card payouts:
Self-Service Kiosk
Players handle the entire payout process themselves at a dedicated kiosk terminal:
- Pros: Reduces staff workload, faster for high-volume locations, 24/7 availability
- Cons: Higher upfront equipment cost, requires floor space
- Best for: High-volume locations with 10+ machines
Staff-Assisted via Tablet
Staff members use a tablet or terminal to process payouts:
- Pros: Lower equipment cost, personal touch, flexible placement
- Cons: Requires staff availability, slightly slower
- Best for: Smaller locations with 1-9 machines
Hybrid Approach
Combination of self-service kiosk and staff-assisted options:
- Pros: Maximum flexibility, accommodates all player preferences
- Cons: Higher total cost
- Best for: Large operations with diverse player base
Reloadable vs Non-Reloadable Cards
Card Type Comparison
Reloadable Cards (Recommended): Players keep the same card and add winnings to it over time. Better player experience, builds loyalty, reduces plastic waste.
Non-Reloadable Cards: New card issued for each payout. Simpler compliance tracking, but less convenient for players.
4Gift Cards vs Lottery Tickets
HB 353 allows two compliant payout methods. Here's a detailed comparison:
| Feature | Gift Cards (Loop Pay) | Lottery Tickets |
|---|---|---|
| Exact Value Payouts | Yes - Any amount | No - Fixed denominations only |
| Where Players Can Use | Anywhere Visa/MC accepted | Georgia Lottery retailers only |
| Inventory Management | None - Digital | Yes - Physical tickets |
| Player Satisfaction | High - Universal use | Lower - Limited utility |
| Setup Complexity | Simple - One provider | Complex - Lottery terminal required |
| Compliance Tracking | Automatic | Manual record keeping |
| Transaction Speed | Instant (<10 sec) | Slower (terminal processing) |
Industry Consensus
Over 85% of Georgia COAM operators surveyed plan to use gift cards over lottery tickets due to superior player experience, operational simplicity, and better retention rates.
5Cost of Gift Card Payout Systems
Transparent pricing is essential when choosing a provider. Here's what to expect:
Setup Costs
- Hardware (Kiosk): $0 - $500 (Loop Pay: $0 for qualified locations)
- Integration: $0 - $250 (varies by CMS complexity)
- Training & Onboarding: Typically included
Monthly Fees
Most providers charge either a flat monthly fee or per-transaction pricing:
- Flat Monthly: $50 - $200/month per location
- Transaction-Based: $0 monthly + 2-4% per transaction
- Loop Pay Model: $0 monthly + competitive per-transaction fee
Per-Transaction Fees
Industry Range: 2.5% - 4.5% per payout
Example: $100 payout = $2.50 - $4.50 fee
Note: Often lower than cash handling costs when you factor in security, theft risk, and staff time.
Total Cost of Ownership
For a typical 5-machine location processing $10,000 in monthly payouts:
- Setup (one-time): $0 with Loop Pay
- Monthly transaction fees: $300 - $400
- No monthly subscription with transaction-based pricing
- Annual cost: ~$3,600 - $4,800
6Implementation Timeline
Here's what to expect from signup to going live with gift card payouts:
Week 1
Discovery & Contract
Initial consultation, site assessment, provider selection, and contract signing. Provider reviews your operation and recommends the best setup.
Week 2
Equipment & Integration
Kiosk installation (if applicable), tablet setup, integration with your CMS or management system, testing of all connections.
Week 3
Training & Testing
Staff training sessions, test transactions, process documentation, signage installation, and player communication materials.
Week 4
Soft Launch & Go Live
Begin processing live payouts, monitor for issues, provider support on standby, full launch once everything runs smoothly.
Faster for Founding Partners
Loop Pay's founding partners receive priority onboarding and can often go live within 5 business days with dedicated support throughout the process.
7Choosing a Provider
Not all gift card payout providers are created equal. Here's what to look for:
Essential Requirements
- HB 353 Compliance: Must meet all Georgia COAM requirements
- Licensed Money Transmitter: Must have proper state and federal licensing
- Automatic Reporting: Should handle all Georgia Lottery compliance reporting
- Statewide Network: Cards must work across all of Georgia
Nice-to-Have Features
- CMS Integration: Seamless connection to your existing management system
- Real-time Analytics: Dashboard showing payout volumes, player activity, compliance metrics
- White-label Options: Brand the cards and experience under your name
- Player Loyalty Tools: Built-in rewards and retention features
- 24/7 Support: Round-the-clock technical assistance
Red Flags to Avoid
- Provider can't prove HB 353 compliance
- No money transmitter license
- Hidden fees or unclear pricing
- No references from other Georgia COAM operators
- Requires long-term contracts with no exit clause
- Doesn't offer automatic compliance reporting
Why Operators Choose Loop Pay
- Zero setup costs for qualified locations
- Full HB 353 compliance with automatic reporting
- Licensed money transmitter with GA Lottery approval
- Transparent, competitive pricing
- Statewide redemption network
- Dedicated support team based in Georgia
- Fast implementation (5-day average for founding partners)
8Frequently Asked Questions
How quickly can players access their winnings?
Instantly. The gift card is loaded in seconds and can be used immediately at any location that accepts Visa/Mastercard.
Do players need a smartphone to use gift cards?
No. While Loop Pay offers a mobile app for convenience, players can also receive physical cards or use a card number without any smartphone required.
What happens if a player loses their card?
With reloadable cards, players can report lost or stolen cards and have a replacement issued with their balance intact. This is one key advantage over cash payouts.
Can players combine multiple payouts on one card?
Yes. With reloadable cards, players can accumulate winnings from multiple sessions on a single card, building their balance over time.
Do gift cards expire?
Under federal law, prepaid cards cannot expire for at least 5 years. Loop Pay cards have no inactivity fees and maintain full balance for the regulatory minimum period.
What if my location doesn't have reliable internet?
Loop Pay's system works with standard broadband or cellular connections. We can also provide backup connectivity solutions for locations with connectivity challenges.
Can master licensees integrate this with their CMS?
Yes. Loop Pay offers API integration with major COAM management systems, allowing master licensees to manage payouts across all their locations from a single dashboard.
How does Loop Pay handle compliance reporting?
All transactions are automatically logged and submitted to Georgia Lottery in the required format. Operators receive compliance reports and can access full transaction history at any time.
Ready to Implement Gift Card Payouts?
Loop Pay makes HB 353 compliance simple. Get started with zero setup costs and join Georgia's premier gift card payout network.