Questions to Ask Before Signing a Georgia COAM Agreement

Questions to ask before signing a COAM agreement

Ask about the term and renewal, service response, redemption setup, accounting, removal and license help, and get the answers in the written agreement. Your agreement is exclusive with one master licensee per location, so read it before you sign, and consider having an attorney review it.

By Justin Gilmore Last reviewed: November 5, 2026 3 min read

What does Georgia law already require?

A written agreement with a master licensee, kept on file at your business. Agreements entered after April 10, 2013 are exclusive between one master licensee and one location, and agreements entered or renewed after May 3, 2016 run for at least one year (O.C.G.A. § 50-27-87). Your share of net revenue is set by law, so it isn't up for negotiation. See the 2026 rules.

Term and renewal

How long is the initial term?
Does it renew automatically? For how long?
How and when do I give notice if I don't want to renew?

Service response

Who do I call when a machine is down, and at what hours?
How quickly do you respond and repair? Is that written down?
What happens if machines stay down?

The Georgia Lottery tells locations to contact their master licensee first, then its COAM Division if repairs aren't timely (GLC guide).

Redemption setup

How will prizes work here: lottery products, gift cards or both?
What do you set up, and what's on me?
Will you train my staff, and how do new hires get trained?

See how prize redemption works now.

Accounting and payment timing

Walk me through how money moves, from the machine to my account.
What reports will I see, and where?
Who collects cash from the machines, and how often?

Each location deposits proceeds in a dedicated COAM account, and the Georgia Lottery sweeps the shares due each week (GLC guide).

Removal and assignment

Under what conditions can either of us remove the machines or end the agreement?
What happens if I sell the business? Is the agreement assignable?
What happens if we disagree?

Before machines are removed or replaced, both sides must certify to the Georgia Lottery whether there's a dispute, and a dispute goes to arbitration (GLC FAQ). If you're buying, see buying a store that has COAMs.

License help

What's your Class B Master License number?
Will you help me with the location license application?
Who handles decals, signs and scheduling the connection?

Before you sign, you can check the operator's license with the Georgia Lottery's COAM Division. You can also look for its legal name or license number in the approved Class B license list. See what installation involves.

Treat any signing bonus as a red flag

Georgia law prohibits giving a location anything of value as an incentive to place machines. That includes loans, gifts, procurement fees, lease payments, revenue sharing and paying your license fees. Asking for or accepting one is a violation too: a location can lose its state business licenses for one to five years per incident, and be fined up to $50,000 (O.C.G.A. § 50-27-87.1).

There's a narrow exception for branded signs, seating and similar items that remain the master licensee's property. If an offer sounds like a bonus, ask an attorney before you accept.

Should an attorney read it?

We suggest it. These are multi-year business agreements, and we aren't lawyers. An attorney can tell you what the term, renewal and removal language means for your business.