GEORGIA LOTTERY CORPORATION v. MRE-BOP OPERATIONS, LLC

Court of Appeals of Georgia·Decided July 8, 2026·No. A25A2074·Published

Opinion

SECOND DIVISION

DOYLE, P. J.,

DAVIS, J., and SENIOR JUDGE FULLER

NOTICE: Motions for reconsideration must be physically received in our clerk’s office within ten days of the date of decision to be deemed timely filed.

https://www.gaappeals.us/rules

July 8, 2026

In the Court of Appeals of Georgia A25A2074. GEORGIA LOTTERY CORPORATION et al. v. MRE-

BOP OPERATIONS, LLC.

FULLER, Senior Judge.

MRE-BOP Operations, LLC owns a convenience store, and it had a license to operate coin-operated amusement machines, often referred to as COAMs. After two of its store clerks made improper cash payouts of COAM winnings to an undercover police officer, the Georgia Lottery Corporation, also known as the GLC, fined MRE- BOP $30,000 and revoked its COAM license for two years. Following a truncated appeal at the administrative level, the superior court reversed the GLC’s final agency decision, and the GLC appeals.1 In its appeal to this Court, the GLC contends that

1 Oral argument was held on October 7, 2025, and is archived on the Court’s website. See Court of Appeals of the State of Georgia, Oral Argument, Case No. A25A2074 (Oct. 7, 2025), available at https://vimeo.com/1127168256.

(1) MRE-BOP failed to exhaust its administrative remedies; (2) MRE-BOP’s petition for judicial review to the superior court was barred by the prior pending action doctrine and res judicata; (3) the superior court applied the incorrect standard of review; (4) the superior court erred in vacating the penalties imposed by the GLC; and (5) the superior court erred in finding various GLC procedures and penalties unconstitutional. For the reasons that follow, we affirm the decision of the superior court in part, reverse in part, vacate in part, and remand the case with direction.

The relevant facts are largely undisputed. MRE-BOP owns and operates a convenience store in Buford. On April 18, 2024, a store clerk provided an undercover officer with a cash payout of $240 for COAM winnings. Such payouts are misdemeanors and are also prohibited under GLC rules.2 The following day, the same clerk gave the same undercover officer another cash payout of $110. Finally, on May 2, 2024, a different store clerk paid out $20 in cash to the same officer. As a result of

2 See OCGA § 16-12-35(g) (“Any person owning or possessing” certain amusement games or devices “or any person employed by or acting on behalf of any such person who gives to any other person money as a reward for the successful play or winning of any such amusement game or device shall be guilty of a misdemeanor of a high and aggravated nature.”); GLC Rule 13.1.16(1) (“Redemption associated with the playing of [a] COAM is permissible only to the extent the redemption is consistent with OCGA § 16-12-35.”). For general information on the GLC Rules and their role in this opinion, see infra note 3.

these cash payouts, the GLC issued a single citation. Following an evidentiary hearing, a GLC hearing officer determined that MRE-BOP was guilty of violating OCGA § 16- 12-35 and thereby GLC Rule 13.1.16.3 Finding that MRE-BOP also had three prior

3 The parties have not made any of the GLC rules a part of the appellate record.

Historically, the GLC rules were not promulgated in accordance with Georgia’s Administrative Procedures Act (“APA”). See OCGA § 50-27-9(a)(3) (2023) (providing that the GLC may adopt “bylaws, regulations, and policies and procedures for the regulation of its affairs and the conduct of its business” but that in doing so, it was exempt from the APA), (a)(19) (2023) (providing that the GLC could “adopt and amend such regulations, policies, and procedures as necessary to carry out and implement its powers and duties [and] organize and operate the corporation” and that, in doing so, the GLC was exempt from the APA). This Court cannot take judicial notice of regulations and rules that are not promulgated in accordance with the APA. See, e.g., Ponce v. State, 279 Ga. App. 207, 210–11(2) (630 SE2d 840) (2006) (noting that this Court cannot judicially notice rules “not promulgated in accordance with the APA”). See also OCGA §§ 24-2-220 (providing for judicial notice of “the administrative rules and regulations filed with the Secretary of State”); 50-13-8 (providing that “[t]he courts shall take judicial notice of any rule which has become effective pursuant to” the APA).

However, in 2024 and again in 2025, OCGA § 50-27-9(a)(19) was amended.

See Ga. L. 2025 at 255, § 1 (HB 74); Ga. L. 2024 at 739, § 1 (HB 353). The current version of OCGA § 50-27-9(a)(19) provides that the APA governs the promulgation of “rules, regulations, policies, or procedures” regarding COAMs, although other GLC rules and regulations are still exempt. But it does not appear that any of the GLC rules at issue in this case have been promulgated as a part of the Rules and Regulations of the State of Georgia, the official compilation of agency rules. See generally OCGA § 50-13-7(d). For this reason, we decline to take judicial notice of them, and we remind the parties to carefully consider whether they should provide this Court with the relevant GLC rules as a part of the record on appeal. Nevertheless, to provide context to this opinion and because the parties do not dispute the contents or language of any of the relevant rules, we have referred to particular rules as needed. The GLC

violations of GLC record-keeping requirements, the hearing officer ordered MRE- BOP to pay a penalty of $30,000 and revoked its COAM license for two years.4 The hearing officer’s decision was issued on July 1, 2024. On July 3, 2024, MRE-BOP filed a motion for reconsideration with the hearing officer. However, six days later, before the hearing officer ruled on the motion for reconsideration filed with him, MRE-BOP also filed a “Combined Motion for Review and Request for Reconsideration” to the GLC CEO.5 When the combined motion was filed with the

rules governing COAMs are available online at https://www.gacoam.com/documents.

4 The hearing officer “revoked” MRE-BOP’s COAM license for two years, and the penalty statute refers to revocation and suspension as possible penalties, see OCGA § 50-27-85(a)(2).

5 In doing so, MRE-BOP made explicit that it was unsure if reconsideration was properly directed to the hearing officer or the CEO and, as such, it had filed both motions out of an abundance of caution. Apparently, this was not an entirely unusual occurrence in administrative appeals to the GLC. See, e.g., Arc Gaming & Techs. v. Hiram Imp, Inc., 375 Ga. App. 581, 582–83 (916 SE2d 781) (2025) (recounting that a COAM owner had filed requests for reconsideration with both the GLC CEO and the hearing officer and that, after both motions were denied, the owner sought review in the superior court, which consolidated the petitions). This confusion appears to have arisen because a legislative amendment effective May 6, 2024, repealed former OCGA § 50-27-102(d) — the statutory basis for the GLC’s appeals process — yet the GLC failed to update its published rules, leaving obsolete and contradictory language in place prior to MRE-BOP’s first administrative appeal. Although the GLC has since altered or removed those “former” rules, we refer to them here because they were the

CEO, the hearing officer, in his own words, “ceased to act” on the motion for reconsideration filed on July 3. Ultimately, the combined motion was deemed denied when the CEO did not rule on it within 30 days. See Amusement Leasing v. Ga. Lottery Corp., 352 Ga. App. 243, 244 & n.1 (834 SE2d 330) (2019) (citing former GLC Rule 13.2.5(1)(b)(4) for the proposition that when the GLC CEO does not issue an order on a motion for review within 30 days, the motion is deemed denied).

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