Tuesday, April 30, 2024–8:13 a.m.
-Adam Carey, Rome News-Tribune-
This story is possible because of a news-sharing agreement with the Rome News-Tribune. More information can be found at northwestgeorgianews.com
Players in Floyd County spent over $100 million in the past year on gaming machines found in many service stations and food marts, according to figures provided by the Georgia Lottery Corporation.
The actual term for those gaming machines — colloquially referred to as ding dings — are class B coin-operated amusement machines, COAMs for short.
Not all of that money leaves the county. Of the $102,761,647.18 spent from April 1, 2023, through March 31, in Floyd County, $73,937,385.20 was redeemed to players. That left approximately $28.8 million in profit.
Of that profit, 90% is split between the master license holder and licensees, and 10% goes to the Georgia Lottery Corporation. A bill on Gov. Brian Kemp’s desk may change the split of the net revenues to 13% for the lottery and 43.5% for the master license holders and licensees.
On average in Floyd County, each of the 115 COAM locations receives approximately $250,000 in annual profit from the machines alone.
There are approximately 811 class B gaming machines in Floyd County, according to the lottery. Each of those gaming machines generated approximately $35,500 in revenue in the past year.
With that amount of money in play, there’s always the potential for scammers. The lottery has security measures as well as its own rules and penalties as well as access to the gaming machines themselves.
“COAM officials can monitor machines in real-time and can remotely enable or disable machines,” Georgia Lottery Corporation Communications Director Tandi Reddick said.
Players receive their winnings typically as a gift card or store credit. Lottery rules prohibit players from being paid in cash, however local officials say that some locations lure players with illegal cash payouts to attract more interest.
According to information on the Georgia Lottery’s COAM website, the gaming machines generated approximately $1.4 billion in revenue in Georgia in 2023, of which the Georgia Lottery Corporation received $140 million.
Georgia Lottery proceeds are used to fund specific education programs with tuition grants and scholarships to undergraduate college students for attendance at eligible Georgia colleges, universities, or technical colleges. It also funds the pre-kindergarten program for all 4-year-olds across the state.
Previously, lottery funds were also directed to capital outlay projects including computer and other technological upgrades for schools, technical institutes, colleges and universities in the state.
From moratorium to ordinance
Rome, Floyd County and Cave Spring recently adopted six-month moratoriums that essentially restrict any new gaming machine or vape stores.
The Rome City Commission is currently working on an ordinance that would, to a degree, enact restrictions on COAMs. Once enacted, it’s anticipated that Floyd County and Cave Spring will follow Rome with similar ordinances.
This past week, Rome City Attorney Andy Davis presented a draft ordinance to city commissioners during the pre-meeting caucus discussion. That proposal is largely based on other city ordinances in the state that have already passed the litigation muster.
It would restrict businesses with the gaming machines in many of the ways the city restricts businesses that serve or sell alcohol.
Any establishment with gaming machines would have to apply for a specific business license. Those businesses would have location restrictions, meaning it must be so far from a church or school. Each of the businesses would be subject to an occupational tax and have to report their income. Each of the locations reports their income quarterly and no more than 50% of their income can come from gaming machine revenues.
The stores would also have to post certain information, including the name of the master license holder, prominently in the store.
It would also restrict each location to six gaming machines. Davis said that wouldn’t be retroactive, but over time as the machines are replaced each establishment would be limited to six machines.
The commission also discussed requiring any establishment where the COAM machines are located to have an employee over 18 years old, and anyone using the machines to be accompanied by someone over 18 years old.
“You may be surprised there are no age requirements to play the COAM machines,” Davis said.
They also discussed limiting the gross revenue from the COAM machines to less than 50 percent of gross revenue, similar to what establishments that serve liquor are restricted to.
Americans with Disability Act compliance would also limit the locations of machines and require doorways and ramps to be handicap accessible.
One issue Rome Mayor Craig McDaniel has brought up repeatedly is one of revenue.
“At the present time, local governments don’t get any money at all,” McDaniel said. “If it’s not going to go away I want to get some of the money.”
McDaniel has been outspoken on his desire that some of the revenue taken from Rome and Floyd County be returned as part of a community service fund.
“We want 20 percent of the money being taken out of Rome to come back,” McDaniel said. “We have a homeless and housing problem and that money would help us tremendously.”