Committee advances COAM cleanup bill after industry and regulator testimony
March 23, 2026 | 2026 Legislature Georgia, Georgia
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A committee substitute aimed at updating rules for coin-operated amusement machines (COAM) and related noncash redemptions was presented as a cleanup and modernization effort and won committee approval after sponsors and industry representatives explained key provisions.
Representative Powell (presenter) told the committee the substitute mirrors language in a House bill and addresses hybrid machines that combine kiddie games with noncash redemption features, which sponsors said would undercut a six-machine limit and risk returning the industry to past problems. He described section-by-section provisions covering competitive tournament redemption cards, a prohibition on revenue sharing with manufacturers or distributors, a progressive-discipline system similar to alcohol enforcement, and permitting the lottery corporation and COAM advisory board to study non-COAM lottery products and unredeemable winnings.
Industry representative Les Schneider of the Georgia Amusement and Music Operators Association said the bill preserves lottery revenue streams — noting the lottery commission's 15% share raised over $200 million last fiscal year — discourages frivolous arbitration and helps streamline enforcement by allowing business-court appeals in some OSHA-like disputes.
Senators asked for clarification on how revenue is split (presenter: even split of the remaining 85% between location owners and master license holders, i.e., 42.5% each) and how progressive discipline is different from current practice; sponsors pointed to specific bill pages and said the bill sets warning, fines, suspensions and revocation, with notice earlier in the enforcement process.
The committee moved and passed the substitute unanimously.
Why it matters: Sponsors framed the bill as protecting the state's lottery revenue, clarifying licensing and enforcement, and preventing circumvention through hybrid machines; industry witnesses emphasized revenue protections and discouraging abusive litigation or arbitration.
Next steps: Committee passed the substitute to be carried to the Senate floor.
Representative Powell (presenter) told the committee the substitute mirrors language in a House bill and addresses hybrid machines that combine kiddie games with noncash redemption features, which sponsors said would undercut a six-machine limit and risk returning the industry to past problems. He described section-by-section provisions covering competitive tournament redemption cards, a prohibition on revenue sharing with manufacturers or distributors, a progressive-discipline system similar to alcohol enforcement, and permitting the lottery corporation and COAM advisory board to study non-COAM lottery products and unredeemable winnings.
Industry representative Les Schneider of the Georgia Amusement and Music Operators Association said the bill preserves lottery revenue streams — noting the lottery commission's 15% share raised over $200 million last fiscal year — discourages frivolous arbitration and helps streamline enforcement by allowing business-court appeals in some OSHA-like disputes.
Senators asked for clarification on how revenue is split (presenter: even split of the remaining 85% between location owners and master license holders, i.e., 42.5% each) and how progressive discipline is different from current practice; sponsors pointed to specific bill pages and said the bill sets warning, fines, suspensions and revocation, with notice earlier in the enforcement process.
The committee moved and passed the substitute unanimously.
Why it matters: Sponsors framed the bill as protecting the state's lottery revenue, clarifying licensing and enforcement, and preventing circumvention through hybrid machines; industry witnesses emphasized revenue protections and discouraging abusive litigation or arbitration.
Next steps: Committee passed the substitute to be carried to the Senate floor.
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