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Georgia COAM 50% Rule Explained
If your business operates Class B COAM machines in Georgia, understanding the state's gross retail receipts requirement is an important part of maintaining a compliant COAM operation.
What Is the Georgia COAM 50% Rule?
Georgia law limits how much of a Class B COAM location's quarterly gross retail receipts can be derived from its Class B machines.
Class B COAM revenue cannot account for more than 50% of the location's applicable quarterly gross retail receipts.
The calculation is based on Georgia's statutory definition and the official calculation methodology used for Class B COAM locations.
The 50% Rule Is Based on Quarterly Gross Retail Receipts
Georgia's current statute refers to a location owner's or operator's quarterly gross retail receipts, rather than simply looking at one isolated month.
That distinction matters when business owners are reviewing their COAM performance and overall retail activity.
A location should maintain accurate records throughout the quarter so it can properly evaluate the relationship between its Class B machine revenue and its overall qualifying business receipts.
What Counts Toward the Georgia COAM 50% Calculation?
The calculation compares revenue derived from Class B COAMs with the location's applicable gross retail receipts.
Georgia law specifically provides that certain amounts are not considered revenue derived from Class B machines for purposes of the rule, including amounts due to the Master Licensee or Georgia Lottery Corporation and noncash redemption earned by the player.
COAM Revenue
The location should accurately track the portion of applicable Class B machine revenue used in the statutory calculation.
Retail Receipts
The location should maintain reliable records documenting its applicable retail business activity.
Official Calculation
Use the Georgia Lottery Corporation's current 50% Gross Calculation Worksheet rather than attempting to create your own compliance formula.
A Simplified Example of the 50% Concept
The following example is for illustration only. It is not a substitute for the official Georgia Lottery calculation.
In this simplified example, the COAM portion is below 50%. However, actual compliance calculations should be completed using the definitions and methodology in current Georgia law and the official Georgia Lottery worksheet.
Why Georgia Has a COAM Gross Receipts Requirement
Class B COAM machines operate as part of an existing Georgia business. The gross retail receipts requirement helps ensure the location continues to function as a qualifying business rather than relying solely on machine activity.
For location owners, that means COAM management should be viewed alongside the performance of the rest of the business.
A successful COAM room should complement the business.
Diamond's goal is not simply to maximize machine count. We want to help locations build a sustainable COAM operation that works alongside the store, restaurant, bar or other qualifying business.
How Location Owners Can Better Monitor the 50% Rule
Accurate records make it much easier to understand where the location stands throughout the reporting period.
- Maintain accurate retail sales records
- Keep COAM-related records organized
- Review performance throughout the quarter
- Use the current GLC calculation worksheet
- Keep business ownership information current
- Retain supporting financial documentation
- Review official COAM notices and updates
- Address questions before reporting deadlines
Don't Ignore the Rest of Your Business
COAM revenue can be an important part of a location's performance, but it should not cause the owner to lose focus on the underlying retail operation.
Merchandising
Maintain a strong retail offering and keep products visible, stocked and relevant to customers.
Customer Experience
A clean, professionally operated location helps both the retail and COAM sides of the business.
Business Performance
Monitor the entire location rather than treating the gaming area as a separate business.
Work With a COAM Provider That Takes Compliance Seriously
Your Master Licensee should understand that long-term performance requires more than installing machines.
Diamond works with Georgia locations on operational support, service, uptime, redemption, account management and compliance-conscious COAM operations.
- Licensing-process support
- COAM operational guidance
- Gift card redemption support
- Service and preventive maintenance
- Account management
- Performance reviews
- Staff communication
- Access to current official resources
Learn More About Georgia COAM Compliance
Georgia COAM 50% Rule FAQs
What is the Georgia COAM 50% rule?
Georgia law limits the amount of a Class B COAM location's quarterly gross retail receipts that may be derived from Class B machines to no more than 50%.
Is the Georgia COAM 50% rule monthly or quarterly?
The current Georgia statute refers to quarterly gross retail receipts. Older materials may still reference monthly calculations, so location owners should use current Georgia law and Georgia Lottery Corporation guidance.
Does all money played through a COAM count toward the 50% rule?
No. Georgia law provides specific treatment for the calculation. Among other things, amounts due to the Master Licensee or Georgia Lottery Corporation and noncash redemption earned by players are not treated as revenue derived from the Class B machines for purposes of the statutory limit.
Is there an official Georgia COAM 50% worksheet?
Yes. The Georgia Lottery Corporation provides a 50% Gross Calculation Worksheet for Licensees through its official COAM document library.
What records should a COAM location keep?
Location owners should maintain reliable financial and business records sufficient to support applicable reporting and compliance obligations. Refer to current Georgia Lottery Corporation requirements for specific recordkeeping guidance.
Can Diamond calculate the 50% rule for my business?
Diamond can provide operational support and help locations understand available COAM resources, but legal, tax, accounting and formal compliance determinations should be handled using official Georgia Lottery guidance and appropriate professional advisors.
Looking for a Compliance-Conscious Georgia COAM Provider?
Diamond combines service, uptime, account management, redemption support and long-term operational support for Georgia Class B COAM locations.
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