Georgia Senate Passes Bill Reforming Coin-Operated Amusement Machine Industry

Georgia lawmakers have passed legislation reforming the state's coin-operated amusement machine industry, sending it to Governor Brian Kemp for approval. The bill aims to curb illegal cash payouts by awarding non-cash redemption gift cards that can be used statewide, instead of limiting redemptions to the store where the machines are located. The amended bill also increases the state's revenue share from 10% to 13%, generating an estimated $40 million annually for education programs. However, some senators expressed opposition, arguing that the games prey on poor people and erode Georgia's values, while others raised concerns about the lower revenue share compared to the Georgia Lottery.

Georgia Senate Approves Coin-Operated Amusement Machine Reform Bill

Atlanta, Georgia - A significant legislative measure designed to reform the coin-operated amusement machine industry in Georgia has cleared the state Senate and is now on its way to Governor Brian Kemp's desk for signing.

House Bill 353, which garnered 29 votes in favor and 24 against in the 56-member Senate, represents the minimum threshold for legislative passage. The bill subsequently gained further support in the House, passing by a considerably wider margin of 148 to 18.

At the heart of the legislation lies a crucial change to the redemption system for winnings. Currently, winners can only exchange their winnings for merchandise offered at the establishment housing the coin-operated amusement machine. However, under the proposed reform, non-cash redemption gift cards would be introduced, allowing recipients to redeem them for any legal product at any location across Georgia.

Proponents of the bill contend that this shift will mitigate the temptation for illegal cash payouts, which have long plagued the coin-operated amusement machine industry and fueled associated criminal activity.

The Senate amended the bill during its Tuesday evening session to increase the state's revenue share from coin-operated amusement machines from 10% to 13%. This additional 3% is projected to generate an estimated $40 million annually, earmarked for Georgia's HOPE Scholarships and pre-kindergarten programs, according to Senator Clint Dixon (R-Buford), the bill's sponsor in the Senate.

Despite these proposed reforms, the bill has faced substantial opposition from senators who question both the morality of coin-operated amusement machine games and the appropriate percentage of revenue allocated to the state.

Senator Bill Cowsert (R-Athens) expressed concern that the industry targets vulnerable individuals, luring them into false hopes of substantial winnings. "The machines are programmed to ensure that you cannot win," he emphasized.

Echoing this sentiment, Senator Randy Robertson (R-Cataula) condemned the perceived erosion of Georgia's values. "We are sacrificing our very soul," he lamented.

Senator Chuck Hufstetler (R-Rome) raised concerns about the bill's potential impact on the Georgia Lottery program. He noted that the amended 13% return would grant the state a significantly lower share of revenue compared to the lottery, which typically contributes roughly 25% of its proceeds to HOPE and pre-k programs.

The bill's fate now lies in the hands of Governor Kemp, who has the authority to sign it into law, veto it, or allow it to become law without his signature. The outcome of this legislative process has significant implications for the regulation of coin-operated amusement machines in Georgia and the allocation of revenue generated by the industry.