Buying a store that has COAMs

No. A location license is valid only at the named location and is non-transferable, and a new owner can't operate machines under the seller's license. Changing your business structure or getting a new federal tax ID can also require a new application (GLC guide).

If machines were placed at the location at any time in the nine months before your application, you must do one of two things: not place machines for nine months from the date your license is granted, or formally accept an assignment of the prior written agreement. The master licensee may refuse to assign it (O.C.G.A. § 50-27-87).

The Georgia Lottery's guide also describes how a new owner can ask to change master licensees when the existing one certifies it has no dispute (GLC guide). The usual order: meet the current agreement's terms, including its non-renewal notice window. Then a Change of Master form goes to the Georgia Lottery, and the current operator has 5 days to agree or dispute (Change of Master form; GLC FAQ). A dispute goes to arbitration. When it's agreed, the old operator removes the machines on a scheduled date and the new one installs, usually within about a week, so plan on about a week with no machines.

Use this list as a starting point. The Georgia Lottery's rules on ownership changes are in its Location License Holder Guide.

• Ask for the existing written agreement, and find its end date and renewal terms.
• Ask who the master licensee is, and whether any dispute is open.
• Find out when machines were last in place, for the nine-month rule.
• Apply for your own location license, with enough lead time before you take over.
• Confirm what prize setup you'll need: lottery retailer status, gift cards or both.
• Make sure your local license and tax certificates are in your name.
• Plan for the 50% rule using your own expected sales, not the seller's machine numbers.

Agreements entered or renewed after May 3, 2016 run for at least one year, and only one master licensee can hold an agreement for a location (O.C.G.A. § 50-27-87). Look at the term, renewal, assignment, removal and any notice period. The questions to ask before you sign apply here too.

Raise COAMs at the listing stage, not the week of closing. Ask the seller for the agreement and the name of the master licensee, note when machines were last in place, and tell the buyer the license won't transfer. Don't describe machine income as part of what's being sold until the buyer has checked the agreement and the nine-month rule. We're glad to talk through a store before closing. Talk before you close.