GA COAM 9 Month Rule
In an attempt to keep all of our bar, restaurant, and amusement centers informed of updates and news in the gaming and amusement industry we want to let everyone know about the GA COAM 9 Month Rule. Below you can read the rule that was part of the GA COAM July-September 2016 Newsletter:
Amendments to the COAM law as of May 3, 2016, established a “9 month rule” related to replacement of Class B COAMs by a master licensee in a new owner’s location if:
- COAMs were within the location within the last 9 months; and
- the new location owner was an applicant for a COAM license on or after May 3, 2016. Pursuant to OCGA 50-27-87 (b)(3)(C), as an applicant for a new location license where COAMs have been placed at any time in the immediately preceding 9 months, the applicant shall either:
- not place COAMs in the location for 9 months from the date of the approval of the new owner’s COAM license; or formally accept an assignment of the written agreement between the master licensee and the preceding location owner. If the 9 month rule applies to a location, the only exception is if the master licensee who placed COAMs within the last 9 months refuses to sign the assignment agreement.
If a location licensee wishes to submit a no dispute certification (available at www.gacoam.com) to certify that is has no dispute with the master licensee associated with the location and wishes to replace COAMs with those of another master licensee, GLC will reach out to the master licensee associated with the location to inquire as to whether it has a dispute with the new owner’s request to change master licensees. If the master licensee associated with the location certifies that it has no dispute with the new owner’s request to change master licensees, GLC may approve a change of master for the location (based on a change of master form that is also available at gacoam.com). However, if the master licensee fails to certify that it has no dispute with the change of master request, the location owner must wait 9 months from the date of approval of its COAM location license to replace COAMs within the location with those of another master licensee. Examples are as follows:
Example 1. A new location owner was approved for a COAM license on April 1, 2016 and is seeking to replace COAMs that were removed in February of 2016. The 9 month rule does not apply because the location owner was an applicant for a COAM license before May 3, 2016. The location licensee must still submit a certification form to GLC but if the master licensee associated with the location fails to timely respond to GLC regarding its certification or fails to timely commence arbitration if there was a dispute, GLC may approve a change of master license.
Example 2. A new location owner purchases a store in June of 2016. COAMs were removed in June of 2015. The location owner applies for a COAM license in July of 2016, the 9 month rule does not apply as COAMs were not placed within the location within the last 9 months.
Example 3. A location owner purchases a store on August 1, 2016. COAMs were previously removed from the store on February 1, 2016. The location owner applies for a COAM license and is approved for the license on August 31, 2016. The location owner wishes to replace the COAMs with those of another master licensee. The location owner must now wait 9 months from the date of the approval of its license (August 31, 2016) without COAMs if it does not wish to accept assignment of the written agreement between the previous location licensee and the previous master licensee. If the new location owner waited until after November 1, 2016 to apply for a COAM license, the 9 month rule may not have applied and GLC may have approved the change of master request.
Example 4. A location owner has been a COAM licensee since 2014 and ownership has not changed. The 9 month rule does not apply. If the location licensee wishes to remove the COAMs or change master licensees, the location licensee must submit a certification form to GLC but if the master licensee associated with the location fails to timely respond to GLC regarding its certification or fails to timely commence arbitration if there was a dispute, GLC may approve a change of master licensee.
These explanations and examples are only for informational purposes and are not intended as legal advice. Specific facts and circumstances may change results and determinations.
If you have any questions about the Georgia Lottery COAM 9 Month Rule or if you are interested in working with Infinity Amusement LLC, you can contact us at admin@infinityamusement.com, call us at 470-265-0866.