1What is HB 353?
House Bill 353 is Georgia legislation that fundamentally changes how Coin Operated Amusement Machine (COAM) operators can pay out winnings to players. The bill was passed to bring greater regulation and oversight to the Georgia skill game industry.
Under HB 353, cash payouts will no longer be permitted for COAM winnings after July 2026. Instead, operators must transition to one of two compliant payout methods:
- Gift cards (including prepaid Visa/Mastercard)
- Georgia Lottery tickets
This represents the most significant regulatory change to Georgia's COAM industry in years and affects thousands of operators, retailers, and locations across the state.
Key Takeaway
After July 2026, any COAM operator paying out cash to players will be in violation of Georgia law. The transition to gift cards or lottery tickets is mandatory, not optional.
2Who is Affected by HB 353?
HB 353 applies to all participants in Georgia's COAM ecosystem:
Location Owners
If you operate a convenience store, restaurant, bar, or any retail location with Class A or Class B COAM machines, you are directly affected. You'll need a compliant payout system in place before the deadline.
Master Licensees
Companies that hold master licenses and distribute machines across multiple locations will need to ensure all their locations are compliant. This includes updating any centralized management systems (CMS) to support gift card payouts.
COAM Operators
Anyone operating coin-operated amusement machines under Georgia Lottery oversight must comply with the new payout requirements.
Players
While players don't have compliance obligations, they will experience a change in how they receive their winnings. Instead of cash, they'll receive gift cards that can be redeemed at participating locations throughout Georgia.
3Key Requirements Under HB 353
HB 353 Compliance Checklist
- No cash payouts – All winnings must be paid via gift card or lottery ticket
- Statewide redemption – Gift cards must be redeemable across Georgia, not just at the winning location
- Proper reporting – All payouts must be tracked and reported to Georgia Lottery
- Licensed payment provider – Must use a properly licensed money transmitter
- Record keeping – Maintain detailed transaction records for audit purposes
4HB 353 Compliance Timeline
2024
HB 353 Passed
Georgia legislature passes HB 353, establishing new COAM payout requirements
Now - June 2026
Transition Period
Operators should begin transitioning to compliant payout systems. Cash payouts still permitted during this period.
July 2026
Compliance Deadline
Cash payouts become illegal. All COAM operations must use gift cards or lottery tickets for player payouts.
Post July 2026
Enforcement Begins
Non-compliant operators face penalties, fines, and potential license revocation.
Don't Wait Until the Last Minute
The July 2026 deadline may seem far away, but implementing a new payout system takes time. Operators who wait until the last minute risk being non-compliant and facing penalties. Start your transition now.
5Compliant Payout Options
Under HB 353, Georgia COAM operators have two legal options for paying out winnings:
Option 1: Gift Cards (Recommended)
Gift cards, including prepaid Visa and Mastercard debit cards, are the preferred payout method for most operators. Here's why:
- Flexibility – Players can use them anywhere Visa/Mastercard is accepted
- Player preference – Most players prefer the flexibility of a prepaid card over lottery tickets
- Easy tracking – Digital transactions are automatically recorded for compliance
- Instant loading – Winnings can be loaded immediately via kiosk or staff
Option 2: Georgia Lottery Tickets
Operators can also pay out winnings in the form of Georgia Lottery tickets. However, this option has limitations:
- Players may not want lottery tickets
- Limited to lottery ticket value denominations
- Requires maintaining lottery ticket inventory
- Less flexible for players
6Gift Cards vs Lottery Tickets: Which is Better?
| Feature | Gift Cards | Lottery Tickets |
|---|---|---|
| Player Preference | High | Low-Medium |
| Redemption Flexibility | Anywhere Visa/MC accepted | Lottery only |
| Exact Amount Payouts | Yes | Limited by ticket values |
| Inventory Required | No (digital) | Yes (physical tickets) |
| Compliance Tracking | Automatic | Manual |
| Player Retention | High | Lower |
Our recommendation: Gift cards are the superior choice for most COAM operators. They offer better player experience, easier compliance tracking, and help retain players at your location.
7How to Get Compliant with HB 353
Getting compliant with HB 353 doesn't have to be complicated. Follow these steps to ensure your operation is ready before the deadline:
Step 1: Assess Your Current Setup
Review your current payout process. How many machines do you have? What's your average daily payout volume? This will help you choose the right solution.
Step 2: Choose a Compliant Payment Provider
Select a payment provider that offers HB 353 compliant gift card payouts. Look for:
- Licensed money transmitter status
- Georgia Lottery COAM compliance
- Automatic reporting capabilities
- Easy integration with your existing systems
Step 3: Set Up Your Payout System
Work with your provider to install kiosks or train staff on loading gift cards. Most providers offer:
- Self-service kiosks for player-initiated payouts
- Staff-assisted loading via tablet or terminal
- Integration with your existing CMS (for master licensees)
Step 4: Train Your Staff
Ensure your staff understands the new payout process and can help players transition from cash to gift cards.
Step 5: Communicate with Players
Let your players know about the upcoming change. Most players adapt quickly, especially when they understand the benefits of gift cards.
Ready to Get Compliant?
Loop Pay provides everything you need for HB 353 compliance. We handle the complexity so you can focus on your business.
Become a Loop Pay Partner8Penalties for Non-Compliance
Failing to comply with HB 353 after the July 2026 deadline can result in serious consequences:
- Fines – Monetary penalties for each violation
- License suspension – Temporary loss of COAM operating license
- License revocation – Permanent loss of operating privileges in severe cases
- Legal liability – Potential civil and criminal liability for illegal cash payouts
Warning
The Georgia Lottery Commission takes compliance seriously. Non-compliant operators will be identified and face enforcement action. Don't risk your business – get compliant now.
9Frequently Asked Questions
When does HB 353 take effect?
The compliance deadline is July 2026. After this date, all COAM operators must use gift cards or lottery tickets for payouts – cash will no longer be permitted.
Can I still pay out cash until the deadline?
Yes, cash payouts are still permitted during the transition period (now through June 2026). However, we recommend transitioning early to ensure a smooth changeover.
What types of gift cards are compliant?
Prepaid Visa and Mastercard gift cards from licensed providers are compliant. The gift cards must be redeemable statewide, not just at the winning location.
Do I need special equipment for gift card payouts?
It depends on your provider. Loop Pay offers both self-service kiosks and staff-assisted loading via tablet, with minimal equipment requirements.
How do players redeem their gift cards?
Players can use their Visa/Mastercard gift cards anywhere those cards are accepted – in-store, online, ATMs (where permitted), and more. They're not limited to redeeming at the location where they won.
What happens if I'm not compliant by July 2026?
Non-compliant operators face fines, license suspension, and potential license revocation. The Georgia Lottery Commission will actively enforce compliance after the deadline.
How long does it take to get set up with Loop Pay?
Most locations can be fully operational within 5 business days. Founding partners receive priority onboarding with dedicated support.