No more than half.
November 7, 2026 · Coam Tracker · 4-minute read
No more than half of a store’s gross retail receipts for the quarter may come from its Class B machines. The rest must come from the store’s own business.
The Georgia Lottery calls the 50% rule “one of the most significant COAM laws.” Its notice on the rule says a store must have a real business of its own, apart from its machines. In its words: “COAM Locations cannot solely be in the business of wagering.”
The rule is in Georgia Code § 50-27-84(b)(1):
“No location owner or location operator shall derive more than 50 percent of such location owner’s or location operator’s quarterly gross retail receipts for the business location in which the Class B machine or machines are situated from such Class B machines; provided, however, that revenues that are due to a master licensee or the corporation or noncash redemption that is earned by the player shall not be deemed revenue derived from Class B machines.”
The limit. At each store, the machines may bring in no more than 50 percent of the store’s gross retail receipts. The count is by quarter, not by month.
What does not count. Three things are not the store’s machine revenue. They are the Master Licensee’s share, the Lottery’s share (the law says “the corporation”), and the noncash prizes players earn.
Lottery Rule 13.1.13(3) repeats the same quarterly limit.
The same Code section defines the term:
“‘Gross retail receipts’ means the total revenue derived by a business at any one business location from the sale of goods and services and the commission earned at any one business location on the sale of goods and services but shall not include revenue from the sale of goods or services for which the business will receive only a commission.”
In plain English. Everything the store sells at that location counts, except sales made at wholesale. Lottery Rule 13.1 says sales “at wholesale shall not be included.” For items the store sells only for a commission, the full price does not count. Only the commission does.
The Lottery’s notice gives an example: “Georgia Lottery tickets are a commission-based product.” A store may add “only the commission (and not the full value of the good).”
The Lottery’s worksheet compares the store’s share of the machines with all of the store’s gross retail receipts. The store’s share is what is left after the prizes, the Lottery’s share and the Master’s share come out. Replays are not counted.
House Bill 353, which became law in 2024, changed the word “monthly” to “quarterly” in this law, § 50-27-84(b)(1). The worksheet notes it: “Due to legislative updates in May 2024, the reporting period was changed from monthly to quarterly.” The quarterly report is due four times a year, as our report page explains.
The law lets the Lottery fine the store, refuse to renew the license, or suspend or revoke it, “for single or repeated violations.” The Lottery’s violation chart lists “Deriving more than 50% of quarterly gross sales from the operation of Class B machines” as Level 4.
A second table suggests Level 4 penalties based on the facts of the case. They run from a fine of up to $10,000 and one year’s loss of license, to up to $25,000 and three years, to up to $50,000, five years’ loss of license and possible revocation. Each can also mean the loss of other state and local licenses.
At least 50% of your business must come from the store, not the machines.
The Lottery’s COAM Retailer Services help line is 1-800-746-8546.
More answers: when the COAM report is due · how long to keep COAM records · what changed on July 1, 2026
Coam Tracker helps a store record each redemption 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.