Georgia CommonsSenate · Engrossed · 2025-2026 Regular Session
SB 254: "Georgia Hemp Farming Act,"; delta-9-THC in consumable hemp products; provide milligram limits
Last action March 18, 2026 · House Committee Favorably Reported By Substitute
A House committee substitute for SB 254 would rewrite Georgia's coin operated amusement machine law, covering billiards and darts tournaments, machine classifications, redemption limits, progressive discipline for violations, and where licensees can appeal corporation decisions.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Comm Sub version, the latest the General Assembly's website lists.
In plain language
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.
What the bill does
- 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.
Who it affects
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.
Why it matters
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.
Key provisions
- 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.
From the bill
“Discipline shall be progressive in nature to include a warning on the first offense; a fine on the second offense; a suspension and fine on the third offense; and a suspension, revocation, fine, or combination thereof on the fourth and subsequent offenses.”
“A location owner or a location operator shall be authorized to conduct billiards or darts tournaments on the premises for which such licensee has a contract for the installation of bona fide coin operated amusement machines.”
Discussed in meetings (4)
The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.
House Regulated Industries Committee, March 17, 2026
From 0:04:14 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The presenting chair described a substitute replacing the hemp subject with changes to coin-operated amusement machine regulation. The chair said it would prohibit hybrid machines combining children's games and noncash-redemption games, prevent tax avoidance, and cap children's-game tickets at $2 without accumulation. The chair said the industry contributes more than $200 million annually to the lottery for HOPE scholarships. The substitute would allow permitted pool and dart games to award gift cards and keep revenue sharing limited to machine providers and licensed locations, excluding landlords. The chair said it would require progressive discipline and prompt violation notices, rather than allowing regulators to accumulate charges before acting. Other provisions would route appeals to the business court in Fulton County, seek recommendations on redemption options, tampering and unclaimed winnings, and allow courts to redirect proceeds to the lottery when a party frivolously delays a contract dispute. No committee questions followed, and the committee approved the bill by voice vote. Later, the Senate sponsor acknowledged that the hemp bill had become an amusement-machine bill and said they were willing to carry it.
House Rules Committee, March 19, 2026
From 1:04:45 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: A committee member described the measure as the annual coin-operated amusement machine bill and said the governor's office and Georgia Lottery had met with lawmakers about it. The member said manufacturers and distributors were combining Class A and Class B machines into hybrids and argued that preventing those combinations was necessary to maintain market stability and avoid machine casinos. There were no questions or calendar action.
House Rules Committee, March 23, 2026
From 0:24:31 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said House changes had removed the hemp provisions from SB 254. The sponsor described the revised bill as closing a loophole involving coin-operated amusement machines that combined features of two machine classes to avoid payments to the lottery board. The sponsor supported the changes. No questions or calendar decision followed.
Status timeline
- House Committee Favorably Reported By Substitute (House)
- House Withdrawn, Recommitted (House)
- House Committee Favorably Reported By Substitute (House)
- House Second Readers (House)
- House First Readers (House)
- Senate Passed/Adopted By Substitute (Senate)
- Senate Third Read (Senate)
- Senate Read Second Time (Senate)
Show full history (11 actions)
- Senate Committee Favorably Reported By Substitute (Senate)
- Senate Read and Referred (Senate)
- Senate Hopper (Senate)
Sponsors
- Bill Cowsert (R, SD-46)
- Alan Powell (R, HD-33)
Votes
- Senate voteMarch 6, 2025
29 yea, 27 nay
- Senate voteMarch 6, 2025
27 yea, 29 nay
- Senate voteMarch 6, 2025
42 yea, 14 nay
Topics
- coin operated amusement machines
- gaming regulation
- gift card redemption limits
- Georgia Lottery Corporation
- licensing disputes