A 2024 law. A 2026 deadline.
November 3, 2026 · Coam Tracker · 5-minute read
Since July 1, 2026, a winning ticket from a Class B machine can be redeemed only four ways. They are replays, lottery products, a non-reloadable gift card, or a reloadable gift card. Merchandise and gas straight for a winning ticket are no longer allowed. The change comes from House Bill 353, which became law in 2024.
July 2026 was the first month under the new rules. That month, Lottery inspectors made 599 inspections. They wrote 18 warnings, the Georgia Amusement Journal reported in August. By the end of September, the Journal’s October issue counted 2,847 inspections, 444 warnings and 112 citations since July.
The change was written two years earlier. House Bill 353 became law in 2024. It added a new Code section on gift cards, § 50-27-71.1, and set it up in two steps.
The first step began in 2024. Until July 1, 2026, the law allowed non-reloadable gift cards “in addition to any other form of redemption allowed by law or authorized by the corporation.”
The second step began on July 1, 2026. For Class B machines, the law now reads:
“Only replays, lottery products, and nonreloadable and reloadable gift cards shall be allowed as a legal form of redemption for Class B machines and no other form of redemption shall be allowed.”
The Lottery’s guide for Location License Holders was written before the change. Its list of allowed prizes included lottery tickets, store merchandise, services the business offers, and gift cards good only at that location. Since July 1, 2026, merchandise and services are off the list. A player who gets a gift card may use it later to buy “lawful goods and services,” the Lottery’s September 16, 2026 letter says.
The Journal’s August issue reported on the Lottery’s COAM Advisory Board meeting of July 21, 2026. Some locations were unaware that “gas and merchandise giveaways were no longer permitted.”
The Lottery sent a notice before the deadline, titled “COAM Prize Redemption Changes Effective July 1, 2026.” It lists the same four ways for Class B machines. It also says a store does not have to offer both lottery products and gift cards. The owner decides.
The notice then gives steps. A store that is not a Lottery retailer and wants to offer lottery products should apply to become one, the notice says. A store that is already a retailer should keep enough lottery products on hand for prize redemption. A store that wants to offer gift cards needs its own gift card provider. The notice says to “independently research and establish a relationship” with one.
House Bill 353 wrote the penalty into the same Code section. It covers a store that gives products or services, other than replays and lottery products, that are not on a gift card:
“Any location owner or location operator that provides for the redemption of products or services, other than replays and lottery products, that are not on a gift card shall, in addition to any other penalties provided by law, receive a warning for the first violation”
After that come civil penalties “proportional to any amounts inappropriately redeemed.” The law adds that this does not reduce any administrative penalty for breaking Georgia Code § 16-12-35.
The Lottery’s notice adds that such a store faces enforcement under Georgia Code § 16-12-35 and the Lottery’s rules. The Journal reported in August that the Lottery has a new Written Warning form. The form lists the law, the products allowed, and the items not allowed.
Gift cards. The bill defined a gift card as “an electronic payment device or system.” It also says a gift card “shall not be exchanged for cash, change, or currency.” The Lottery’s letter of September 16, 2026 says the cards “cannot be used as a method to receive cash.” More on our gift card rules page.
Quarterly reports. House Bill 353 changed the store’s report from monthly to quarterly. The new schedule started October 1, 2024. The dates are on our quarterly report page.
The revenue split. House Bill 353 set the split at 43.5% for the store, 43.5% for the Master Licensee and 13% for the Lottery. The Lottery’s COAM Net Revenue and Commission report shows the new split starting May 12, 2024.
Licenses. A license may now be issued “for a period of one, two, or three years at the option of the applicant or licensee.”
The Lottery’s notice gives its COAM Retailer Services help line for questions: 1-800-746-8546.
More answers: what a store can give for a winning ticket · why cash is never allowed · the COAM gift card FAQ
Coam Tracker helps a store record each redemption, each gift card issued and each day’s machine totals in one place — see how →This page shares general information about Georgia law from public sources, with links. It is not legal advice. Coam Tracker helps you keep records. It is not affiliated with, endorsed by, or approved by the Georgia Lottery Corporation or GAMOA.