Under HB 353, Georgia COAM operators must choose between gift cards and lottery tickets for payouts. Here's everything you need to know to make the right decision for your operation.
For most COAM operators, gift cards are the superior choice. They offer exact payouts, universal acceptance, instant delivery, and zero inventory management. Unless you have an existing lottery terminal relationship and process very few payouts, gift cards will provide a better experience for both operators and players.
Bottom line: Gift cards eliminate the pain points of lottery tickets while keeping you fully HB 353 compliant.
| Criteria | Gift CardsRecommended | Lottery Tickets |
|---|---|---|
| Player Experience | Excellent - Digital wallet, app-based, modern UX | Basic - Physical ticket, traditional redemption |
| Payout Flexibility | Exact amounts - Load $47.32, $123.50, any amount | Limited to ticket denominations ($5, $10, $20, etc.) |
| Where Players Can Spend | Anywhere Visa/Mastercard accepted nationwide | Only at GA Lottery retailers (limited locations) |
| Setup Requirements | Simple integration, kiosk or tablet, done in days | Lottery terminal, existing account required |
| Inventory Management | None - Digital cards generated on demand | Must stock physical tickets, track inventory |
| Compliance Reporting | Automated - Real-time dashboards, handled for you | Manual reporting through lottery system |
| Player Retention Impact | High - Players love the convenience and flexibility | Neutral - Standard redemption experience |
| Cost to Operator | Transaction-based, competitive rates | Varies by lottery commission and volume |
| Speed of Payout | Instant - Loads in seconds | Fast, but depends on terminal availability |
There are a few scenarios where lottery tickets might be the right choice:
If you're already a lottery retailer with an existing terminal and relationship, adding lottery ticket payouts may be simpler than onboarding a new system.
Small operations with only a few machines and infrequent payouts might not see enough benefit from a digital gift card system.
In rare cases, if your specific player demographic overwhelmingly prefers physical lottery tickets and you've validated this through direct feedback.
Gift cards are the superior choice if any of these apply:
Easier to deploy and manage at scale
No inventory to manage, infinite supply
Don't want to deal with lottery commission
Want to offer best-in-class experience
Want real-time compliance dashboards
Planning to expand your operation
Players are increasingly digital-first. They expect mobile experiences, instant access, and flexibility. Gift cards align with these expectations. Lottery tickets feel outdated to most players under 50.
Gift cards eliminate physical inventory management, reduce staff training time, and provide instant reporting. No more counting tickets, tracking serial numbers, or reconciling inventory at the end of the day.
Players will choose locations that offer better payout experiences. If your competitor offers gift cards while you're stuck with lottery tickets, you're at a disadvantage. First-mover advantage matters.
Gift card systems are built for digital evolution. They can integrate with loyalty programs, mobile apps, and future payment innovations. Lottery tickets are constrained by legacy infrastructure.
Yes, both are approved under HB 353 as legal payout methods for Georgia COAM operators. The law allows either option, so the choice comes down to operational fit and player experience.
Yes. Loop Pay issues Visa and Mastercard gift cards that work everywhere those networks are accepted - millions of locations nationwide including grocery stores, gas stations, restaurants, online shopping, and more. Lottery tickets can only be redeemed at Georgia Lottery retailers.
You can keep using it! Many operators use both methods - lottery tickets for some payouts and gift cards for others. However, even operators with existing lottery terminals often prefer gift cards for the flexibility and better player experience once they try both.
Costs are competitive and often comparable. Gift cards typically have a small per-transaction fee, while lottery tickets may have activation costs and commission structures. The key difference is that gift cards eliminate inventory costs, staff time for reconciliation, and manual reporting - making them more cost-effective overall for most operators. Contact us for detailed pricing.
Yes, absolutely. Many operators start with lottery tickets and switch to gift cards once they see the benefits. However, it's easier to start with gift cards from the beginning rather than training staff and players twice. With the July 2026 deadline approaching, now is the perfect time to make the right choice.
Loop Pay provides everything you need. You can choose between self-service kiosks or staff-assisted systems using a simple tablet. Setup is fast and hardware costs are minimal or zero for qualified locations. Compare kiosk options.
Make the right choice for your operation before the July 2026 deadline. Loop Pay makes gift card payouts simple, compliant, and profitable.
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