Proposed Rome Ordinance Requires Licensing for Gaming Machines

The owners of gaming machines, colloquially referred to as ding ding machines, would have a year to comply with a proposed Rome ordinance partially regulating the businesses that operate them.

The ordinance would apply to all locations in the city that have Georgia Lottery regulated Class B coin operated amusement machines, COAMs for short.

City commissioners considered the ordinance on first reading Monday and discussed it during their pre-meeting caucus at city hall.

Under the proposed ordinance, the proprietor must get an amusement room license from the city clerk’s office and pay an occupation tax — which is based on the revenue of a facility and the number of employees. A separate license must be purchased for each location. That license must be renewed annually.

“We commonly know that as a business license,” City Clerk Joe Smith said. “Going forward, they’ll have a business license and a COAM license.”

The occupation tax is based on the gross earnings, not net earnings, Smith said. The city clerk estimated that the licenses could generate $15,000 to $20,000 a year for the city overall.

According to the Georgia Lottery, COAM players in Floyd County spent $102,761,647.18 from April 1, 2023, through March 31, and $73,937,385.20 was redeemed to players. That left approximately $28.8 million in profit.

The ordinance would require each location to keep financial records and provide the city clerk with those records on a quarterly basis as well as an annual audit. No location could derive more than 50% of its earnings from the gaming machines, a limit similar to the city’s food-to-drink ratio for alcohol.

“Does it appear to you that you’re dealing with facilities that are doing $50 million worth of business?” City Commissioner Bill Collins asked.

“No,” Smith said.

Then, Collins said, we’ll have to shut down a lot of these stores unless they come into compliance.

Several city commissioners expressed interest in that outcome. However, Collins said he doesn’t want to shut down these stores.

“You’re going to get your wish (Mayor Craig McDaniel) and regulate them out of business,” Collins said.

The owners of locations housing gaming machines also would have to comply with all the city’s rules for establishments selling alcohol and have no more than six Class B gaming machines at each location.

However, the city commission would be able to waive the provision limiting the number of gaming machines on a case by case basis.

The ordinance is legally defensible, City Attorney Andy Davis told commissioners during the caucus. It also has a built in amount of time — a year — for current businesses to come into compliance.

For example, Davis said those that have nine machines will have a year to get down to six machines. Those that don’t comply with the alcohol sales provisions, such as location, would have a year to comply.

It also regulates where the COAMs can be placed in the business.

“The ordinance provides the machines must be in plain view,” Davis said. It means the machines must be visible, but not necessarily right out front. They cannot be in a separate room, Davis told commissioners.

“Those that may have them behind a closed wall will have a year (to get them in compliance),” Davis said.

There’s still a question about ending a six month moratorium on convenience stores and vape shops, an item the gaming machine attorneys have objected to.

Commissioners discussed the potential of ending the convenience store moratorium — which essentially targets businesses with COAMs — upon the passage of the ordinance, however they may continue the vape shop moratorium.

There’s also the potential of using zoning regulations to essentially ban vape shops in the downtown area. Davis said they’re looking into that and will present that to the city commission in the future.