If you run a retail business in Georgia, coin-operated amusement machines (COAMs) can be a steady source of income, but they also come with significant regulatory oversight. When a disagreement arises with your COAM provider (master licensee) over your machines or your COAM contract resulting in the Georgia Lottery Corporation (GLC) referring you to mandated arbitration, you need an Atlanta COAM arbitrations attorney who understands how to deal with the GLC and master licensees. At Wallack Law, we help business owners address these high-stakes conflicts. An Atlanta commercial gambling attorney can help protect your livelihood when a Master License Holder or the state becomes involved.
When a COAM dispute affects your operations, you need a legal team that understands both regulatory enforcement and contract conflicts. Wallack Law offers:
In Georgia, the COAM industry is highly regulated and controlled by the GLC. Every business that provides COAMs (location licensee) must have a written contract, often referred to as a Location Agreement, with the master licensee . These contracts must have a minimum term of one year but are often much longer.
A COAM arbitration is a process for resolving disputes concerning these contracts outside the formal court system. If a location licensee or a master licensee indicate to the GLC that there is a dispute, the GLC will automatically refer send the matter to arbitration. Disputes resulting in arbitration can arise for many reasons, such as a location licencee’s placement of the machines, availability of the machines to the public, or attempts to negotiate a new contract with a different master licensee. Typically, however, disputes arise at the end of a contract term often the result of a location licensee attempting to terminate the contract.
A citation from the GLC can create serious complications for your business. For example, paying cash as a reward for successful play is prohibited under GA Code § 16-12-35. If the GLC alleges a violation, it may move to suspend or revoke your location license.
Losing your license can prevent you from continuing to operate under your agreement with the master licensee. In response, the master licensee may claim that the contract was breached and pursue arbitration to recover projected lost revenue for the remainder of the contract term. We can help challenge these claims and look for ways to minimize this financial damage.
Arbitration does not always stem from an alleged legal violation. Sometimes routine business changes, such as closing a store, relocating, or losing a lease, can lead to contract disputes. If your business is no longer able to host COAM machines, the master licensee may argue that the agreement was prematurely ended before the contract term expired.
These cases often come down to the details in the contract, including notice provisions, exclusivity clauses, and early termination terms. Even if the closure was beyond your control, the provider may still try to recover the income they expected to earn for the rest of the contract. We can review the agreement with you to identify possible defenses and help you decide on the most practical next steps.
A COAM dispute can affect your license, finances, and business stability. Our Atlanta COAM arbitrations attorney at Wallack Law can help you evaluate your options and develop a practical strategy. Contact us today to discuss your situation and learn how our experienced team can help you move forward.
