New Law Leads to Boom in Slot Machine-Type Games at Georgia Gas Stations

You might have recently seen someone in a Georgia gas station or convenience store playing at a machine that advertises the chance to win large prizes. Though they might look like slot machines that you find in casinos, there are differences which make these games legal, and they are now more popular due to a recently enacted state law. 

In 2024, Georgia lawmakers expanded the range of rewards permissible in coin-operated amusement machines (COAMs), triggering an increase in rewards-based gaming across the state. These machines, often seen in stores and gas stations, operate under strict state regulations that differentiate them from traditional slots. Previously, a COAM installed in a retail establishment could only issue prizes that could be redeemed at that location, such as gasoline or a lottery ticket. Under the revised law, the payout can include gift cards and other rewards that can be used throughout the state. Cash prizes are still not permitted. 

COAMs are electronic gaming devices classified as skill-based under Georgia law. This represents another difference from slot machines, where the result is purely based on chance. While both types of games require payment in exchange for the chance to win a reward, with a COAM, the player must solve a puzzle, answer a question or complete a task within a given time period.

The Georgia Lottery Corporation is responsible for licensing COAMs and enforcing state regulations relating to them. As the revised law has increased the popularity of these machines, and the revenue collected through them, it is likely that monitoring of establishments that have COAMs will also be stepped up. 

For gas stations, convenience stores and other establishments, the new law presents an opportunity to attract more customers, though you should not enter this highly regulated field without a thorough understanding of COAMs and Class B licensing requirements. If you have questions about the legalities of COAM operations, consulting a knowledgeable Georgia business law attorney will help you make an informed decision about how to proceed. 

Dyer Rusbridge Argo, P.C. advises clients in Cherokee County and other parts of Georgia on a wide range of business law developments, including the effect of recently passed statutes. Please call 770-450-5733 or contact us online to schedule a consultation. Our office is in downtown Canton.