Georgia COAM rules for 2026

Replays, lottery products, and non-reloadable or reloadable gift cards. Cash is never allowed (GLC notice). A location chooses lottery products, gift cards or both, and offering both isn't required.

A gift card holds only what the player won. It can be used elsewhere, but it can't be exchanged for cash, change or currency (O.C.G.A. § 50-27-71.1), and locations can't give cash back on one (GLC letter).

Net receipts split three ways: 43.5 percent to the location, 43.5 percent to the master licensee and 13 percent to the Georgia Lottery (Lottery for Education Act). Because the split is set by law, no operator can offer a location a larger share. See what those shares can look like in dollars.

Up to nine Class B machines in one business location. That limit doesn't apply to an amusement or recreational establishment (O.C.G.A. § 50-27-84). A county or city can lower it to six by ordinance (O.C.G.A. § 50-27-86), and several have. Check the local limits table.

A location can't derive more than 50 percent of its "quarterly gross retail receipts" from Class B machines (O.C.G.A. § 50-27-84). The limit is checked over each calendar quarter, so the three months are taken together. You or your accountant enter your sales on the COAM website each month (GLC FAQ), and the Georgia Lottery can compare those figures with the sales tax returns (Form ST-3) your business already files each month. The Georgia Lottery compares your share of machine revenue with your business sales, and it calls this one of the most significant COAM laws (GLC notice). See the 50% rule, explained.

The annual location license fee is $125 for each Class B machine. Online payments also carry a non-refundable payment processing and administrative fee of $100 (GLC guide). Renewing after the due date brings a $1,000 late fee. See the location license steps and checklist.

The licensing year runs July 1 to June 30. The Georgia Lottery's guide says new location applications can be submitted anytime during the licensing year (GLC guide), and its website lists a late-May deadline for applying under the year about to end (gacoam.com).

State law lets a local government lower the cap to six, require notices and employee training on the prohibitions, and suspend or revoke an alcohol or other local license as a penalty after certain convictions (O.C.G.A. § 50-27-86). The Georgia Supreme Court has limited how far a local ban can go (Gebrekidan v. City of Clarkston). See COAMs and your liquor license. See Savannah, Perry, Lilburn, Powder Springs, Macon-Bibb and Atlanta.

No. Georgia law prohibits offering or accepting anything of value as an incentive to locate machines, including loans, gifts, revenue sharing beyond the set split and payment of license fees. Penalties reach $50,000 per incident and loss of state business licenses (O.C.G.A. § 50-27-87.1). See questions to ask before you sign.

Adult entertainment businesses can't host Class B machines (GLC rules). The Georgia Lottery says no Class B license will be issued to a retailer of distilled spirits, or to a business conducting or allowing nudity. Its list isn't all-inclusive (GLC guide). Local rules can add their own requirements, so check yours. Laundromats can hold a location license, with staffing to work out first.