SB 254: "Georgia Hemp Farming Act,"; delta-9-THC in consumable hemp products; provide milligram limits

This bill text is a House substitute that no longer addresses hemp or THC limits, despite the bill's original title. Instead it amends the Georgia Lottery for Education Act (O.C.G.A. Chapter 27 of Title 50), which governs coin operated amusement machines like pinball, claw machines, and video games found in bars, arcades, and other locations across Georgia. The bill lets location owners run billiards and darts tournaments tied to their amusement machine contracts, with prizes limited to gift cards or noncash items. It tightens rules on who can profit from machine play, sets new dollar limits on noncash prizes redeemed through gift cards ($2.00 per play in some cases, up from broader limits), and requires the Georgia Lottery Corporation to use a standardized progressive discipline system for violations, starting with a warning and escalating to fines, suspension, and revocation. It also moves appeals of corporation decisions from the chief executive officer to the Metro Atlanta Business Case Division of the Superior Court of Fulton County, and adds a process for resolving disputes between master licensees and location owners over machine revenue. The law would take effect as soon as the Governor signs it.

• Authorizes location owners or operators to run billiards and darts tournaments on their bona fide coin operated amusement machines, with prizes limited to gift cards or other noncash rewards.
• Sets new dollar caps on noncash prizes from Class A machines: up to $50 for prizes redeemed directly from the machine, but only $2.00 per play if the reward is a gift card or something redeemable elsewhere.
• Requires the Georgia Lottery Corporation to apply progressive discipline for violations: a warning first, then a fine, then suspension plus a fine, then suspension, revocation, or a fine on later offenses.
• Moves appeals from corporation decisions out of the chief executive officer's hands and into the Metro Atlanta Business Case Division of the Superior Court of Fulton County.
• Creates a formal dispute process between master licensees and location owners or operators over machine revenue, including possible award of attorney fees to the winning side.
• Restricts who can collect proceeds from machine play, generally limiting it to master licensees, their employees, location owners, and location operators.

Businesses and individuals in Georgia's coin operated amusement machine industry are affected, including master licensees, location owners and operators (bars, arcades, and similar venues), manufacturers, distributors, and the Georgia Lottery Corporation, which regulates and disciplines the industry.

Bar and arcade owners who host amusement machines would face clearer but stricter rules on prize payouts and new tournament options, while facing a structured penalty ladder instead of case by case discipline. Businesses disputing revenue with licensing partners would go through a new hearing and court process in Fulton County.

• Section 1 clarifies the definition of a 'bona fide coin operated amusement machine' and revises Class A machine reward limits, including a $2.00 per play cap for gift card redemptions (O.C.G.A. § 50-27-70).
• Section 2 adds new subsections letting location licensees hold billiards and darts tournaments and restricting who can receive machine play proceeds (O.C.G.A. § 50-27-71).
• Section 3 sets a July 1, 2026 effective date for new redemption rules and adds a progressive discipline structure for redemption violations (O.C.G.A. § 50-27-71.1).
• Section 3 also requires a study by July 1, 2027 on lottery product redemptions, gift card use, machine tampering, and unredeemed winnings.
• Section 5 changes the appeals process for corporation actions from general Superior Court review to the Metro Atlanta Business Case Division of the Superior Court of Fulton County (O.C.G.A. § 50-27-76).
• Section 9 creates a detailed process for resolving disputes between master licensees and location owners or operators over machine revenue, including possible attorney fee awards (O.C.G.A. § 50-27-102).
• Section 10 states the Act takes effect upon the Governor's signature or upon becoming law without signature.

1. 2026-03-18House Committee Favorably Reported By Substitute (House)
2. 2025-04-04House Withdrawn, Recommitted (House)
3. 2025-03-28House Committee Favorably Reported By Substitute (House)
4. 2025-03-11House Second Readers (House)
5. 2025-03-10House First Readers (House)
6. 2025-03-06Senate Passed/Adopted By Substitute (Senate)
7. 2025-03-06Senate Third Read (Senate)
8. 2025-03-03Senate Read Second Time (Senate)

• Bill Cowsert (R, SD-046)Primary sponsor
• Alan Powell (R, HD-033)

1. PassedSenate voteMarch 6, 2025

   29 yea, 27 nay

   Adoption Of Amendment #1 By The Senator From The 29th: Senate Vote #169

2. FailedSenate voteMarch 6, 2025

   27 yea, 29 nay

   Motion To Reconsider Amendment #1: Senate Vote #170

3. PassedSenate voteMarch 6, 2025

   42 yea, 14 nay

   Passage By Substitute: Senate Vote #171

• coin operated amusement machines
• gaming regulation
• gift card redemption limits
• Georgia Lottery Corporation
• licensing disputes