
Frequently Asked Questions
Have Questions About COAM Gaming? We've Got Answers.
Explore our comprehensive FAQ section to learn about COAM gaming, revenue expectations, and regulatory requirements. If you need further assistance, our team is here to help.
FAQ:
How long does the process take?
Answer: With Double Down Gaming's expert guidance, the process typically takes between 4 to 6 weeks. Our experienced team streamlines every step, ensuring a faster and smoother experience to get your operations up and running swiftly.
How much money can my location make?
Answer: The revenue made at a location varies greatly and depends on several key factors. These include location, player profile, hours of operation, etc. The Georgia Lottery Corporation publishes some year-end statistics that show monthly net revenue per machine around $1,200 per machine per month. This net revenue is then split per the breakdown listed below. This data would extrapolate to an average location monthly revenue, assuming 6 games, of approximately $3,132 per month.
What is the revenue split?
Answer: Georgia Lottery Corporation recently implemented revenue split change due to GA House Bill 353. As of May 2024, the net revenue split is:
Georgia Lottery Corporation = 13%
Location Owner = 43.5%
Master Operator = 43.5%
This will remain as is for the foreseeable future unless legislation dictates otherwise.
What is COAM?
Answer: COAM stands for Coin Operated Amusement Machine, and in Georgia, there are two categories defined by state law: Class A and Class B. Class A COAMs include traditional arcade games like kiddie rides, skeeball, claw machines, pinball, coin or bill-operated pool tables, and jukeboxes. Class B COAMs typically are skill-based redemption games that permit players to accumulate points over multiple plays.
Who regulates COAMs?
Answer: Starting April 10, 2013, the Georgia Lottery Corporation (GLC) has been the regulatory authority overseeing the industry.
Do I have to be licensed to operate COAMs in Georgia?
Answer: Yes, any venue hosting COAMs for public enjoyment requires a valid COAM Location License from the Georgia Lottery Corporation (GLC). The Location License Holder is typically the owner or operator of the establishment where COAMs are made available to the public. Similarly, anyone who places COAMs in a venue for public play, like Double Down Gaming—a licensed Master Class B holder in Georgia—must have a valid COAM Master License from the GLC. Furthermore, any manufacturer or distributor who sells or distributes COAMs for public use must also possess a valid COAM Manufacturer or Distributor License issued by the GLC. These licenses ensure that all parties involved meet the necessary regulatory requirements for providing COAMs. If you need assistance navigating these regulations or want to enhance your venue with Class B COAMs, contact Double Down Gaming today. We’re here to help you with expert guidance and top-quality gaming solutions.
Where can I find COAM laws, rules, and regulations?
Answer: The Georgia Lottery Corporation has established rules and regulations for COAMs, which are available on the COAM licensing and reporting website under the Services and Support/Documents section. Georgia COAM Website
What is the GA COAM Gross Receipts Rule (50 Percent Rule)?
Answer: The GA COAM 50 Percent Rule requires that no location owner or operator derive more than 50 percent of their monthly gross receipts from Class B machines at any business location. This includes only the revenue directly generated by these machines and excludes non-cash redemptions earned by players, and revenue from sales where the business only earns a commission. Gross retail receipts are defined as all revenue from the sale of goods and services at a location, excluding wholesale transactions and sales where the business acts solely as a commission-based agent. Double Down Gaming ensures that all our clients understand and comply with this rule, guiding them through the process to maintain ongoing compliance and optimize their operations.
What is the GA Coin Operated Amusement Machine 9-Month Rule?
Answer: The "9 month rule" introduced in the COAM law amendments on May 3, 2016, addresses the replacement of Class B COAMs in a new owner's location. If COAMs were previously located there within the last 9 months and the new owner applied for a COAM license on or after May 3, 2016, the rule applies. According to OCGA 50-27-87 (b)(3)(C), a new location licensee must either wait 9 months from the approval of their COAM license to place new machines, or accept a written agreement transfer from the previous owner and the master licensee. If the master licensee who placed the machines in the last 9 months refuses to sign the assignment, the new owner must wait the 9 months. Additionally, if a location owner wishes to switch master licensees and there is no dispute with the current master licensee, they can submit a 'no dispute certification' to the GLC. If the GLC confirms there is no dispute, a change of master licensee may be approved. However, if there is a dispute or the master licensee does not respond, the new owner must again wait 9 months.
Examples include:
If a new owner was approved before May 3, 2016, and wants to replace machines removed prior to that date, the rule does not apply but they must still submit a certification.
If COAMs were not present in the last 9 months prior to the new owner's application, the rule does not apply.
If an owner applies after removing machines and is approved, they must wait 9 months unless they accept the previous agreement.
These scenarios illustrate the application of the rule, but are not legal advice. Specific situations may vary. If you need assistance understanding how this rule applies to your situation, please contact Double Down Gaming. We provide expert guidance to ensure all our clients remain compliant with these regulations.