UNITED GAMING, LLC v. GEORGIA LOTTERY CORPORATION

Court of Appeals of Georgia·Decided October 31, 2025·No. A25A0967·Published

Opinion

FIRST DIVISION

BROWN, C. J.,

BARNES, P. J., and WATKINS, J.

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

October 31, 2025

In the Court of Appeals of Georgia A25A0967. UNITED GAMING LLC. v. GEORGIA LOTTERY CORPORATION et al.

BARNES, Presiding Judge.

United Gaming, LLC appeals from the trial court’s order dismissing its mandamus petition seeking the enforcement of an administrative order granting the transfer of certain Coin Operated Amusement Machine (“COAM”) licenses.1 The

1 COAM refers to a machine of any kind or character used by the public to provide amusement or entertainment whose operation requires the payment of or the insertion of a coin, bill, other money, token, ticket, card, or similar object and the result of whose operation depends in whole or in part upon the skill of the player, whether or not it affords an award to a successful player[.]

OCGA § 50-27-70 (b) (2) (A).

trial court granted the motion to dismiss filed by the Georgia Lottery Corporation (“GLC”), Gretchen Corbin, individually and in her official capacity as President and Chief Executive Officer, and Joseph Kim, individually and in his official capacity as General Counsel, (collectively, “GLC” unless otherwise noted) upon concluding that United Gaming had no clear legal right to processing of the transfer of the COAM licenses and had not exhausted all of its adminstrative remedies. United Gaming appeals from that order.2 For the reasons discussed below, we affirm the trial court’s dismissal.

We review de novo a trial court order granting a motion to dismiss a mandamus petition brought under OCGA § 9-11-12 (b) (6). Hildebrand v. City of Warner Robins, 354 Ga. App. 164, 164 (840 SE2d 503) (2020).

“The GLC ... regulates COAMs through a statutory framework set forth in OCGA §§ 16-12-35, and 50-27-70 to 50-27-104, as well as through its own set of administrative rules.” Coin Operated Solutions v. Norcross Convenience, 357 Ga. App. 640, 641 (1) (851 SE2d 226) (2020); Amusement Leasing v. Ga. Lottery Corp., 352 Ga.

2 We thank World Gaming, LLC for the submission of its well-informed amicus curie brief.

App. 243, 245 (1) (834 SE2d 330) (2019) (“[T]he GLC ... administers Georgia’s statutory framework applicable to COAMs and COAM businesses”).

Within this framework we consider the facts relevant to this appeal. In 2023, United Gaming, a COAM master licensee sought approval from the GLC to transfer two of its COAM licenses to two other companies.3 The transfers were initially approved by a GLC attorney, but before the transfer of the licenses, Kim, the GLC’s General Counsel, denied the transfer because of purported statutory prohibitions of assignments or transfers of licenses. United Gaming and the potential buyers were denied their requests for a hearing on the decision. According to Kim, the statutory hearing process did not apply to GLC “declin[ing] to approve the transfer of the two bare master licenses held by United Gaming.” Kim concluded that the “COAM statutory scheme makes clear there are restrictions on the hearings subject matter,” and that should a lawsuit result, then “failure to exhaust administrative remedies” would be “inapplicable.” Moreover, Kim also directed that “under state law,

3 “Master license” means the certificate which every owner of a bona fide coin operated amusement machine must purchase and display in the owner’s or operator’s place of business where the machine is located for commercial use by the public for play in order to legally operate the machine in the state. OCGA § 50-27-70 (b) (10). “Master licensee” means any person that has lawfully applied for and received a master license. OCGA § 50-27-70 (b) (10.1)

[specifically OCGA § 50-27-71 (e) (5)], master licenses are non-transferable unless they are part of the sale of the entire business.” See OCGA § 50-27-71 (e) (5).4 Despite this, United Gaming sent a direct hearing request to a GLC hearing officer asserting that, although GLC had refused to initiate a hearing process on the transfer of the licenses, it is the hearing officer who “decides whether a hearing is proper, whether by statute or GLC Rules.” Thereafter, United Gaming was granted a limited hearing to determine whether it was entitled to a administrative hearing. The administrative hearing officer expressed that while a hearing was not statutorily mandated, “pursuant to the power delegated under OCGA § 50-27-81, the hearing officer may initiate hearings ‘to ensure compliance with the provisions of [the COAM

4 OCGA § 50-27-71 (e) provides, in pertinent part, A license or permit issued under this Code section: (1) Is effective for a single business entity; (2) Vests no property or right in the holder of the license or permit except to conduct the licensed or permitted business during the period the license or permit is in effect; (3) Except as provided in paragraph (5) of this subsection, is nontransferable, nonassignable by and between owners or location owners and location operators, and not subject to execution. . . .(5) As it relates to a master licensee, upon the sale of a master licensee’s business in its entirety, the buyer shall pay to the corporation a transfer fee for the master license that accompanies the business[.]

statutes] or to determine whether violations exist.’ Thus, the hearing officer must determine whether a hearing, while not required, may nevertheless be appropriate under the facts presented.”5 See OCGA § 50-27-102 (d) (2) (“All disputes subject to the provisions of this Code section certified by a master licensee, location owner, or location operator shall be decided by a hearing officer approved or appointed by [the GLC].”) However, the hearing officer indicated that, notwithstanding the granting of a hearing, it was unclear whether a hearing officer would thereafter have authority to grant substantive relief on the underlying complaint.

GLC corresponded with the hearing officer as to its opposition to the hearing and informed the officer that GLC would not “participate in and ratify any GLC administrative hearing process with respect to this matter.” Despite the GLC’s

5 The hearing officer noted that while United Gaming was basing its hearing request on OCGA § 50-27-73 (d), the “statute only requires a hearing to ‘ascertain whether a licensee or applicant for a license has engaged in conduct which would be grounds for revocation, suspension, or refusal to issue or renew or issue a license.’” It further found unpersuasive United Gaming’s contentions that the underlying issue fell “within the scope of OCGA § 50-27-74 (a), which mandates hearings where an application for an original or renewal licenses had been denied, a license will be revoked, or sanctions will be imposed.” Likewise, the hearing officer was unpersuaded by United Gaming’s contention that a hearing was required pursuant to GLC Rule 13.2.1 (3), “which, following United Gaming’s argument to its logical conclusion, would give any party the right to a hearing under any circumstances at any time.”

opposition, the hearing officer conducted a preliminary hearing concerning whether under the GLC’s statutory framework and rules, United Gaming and the purchasing companies were entitled to a hearing on the merits. Following the hearing, the hearing officer concluded that United Gaming was entitled to a substantive hearing on the merits regarding the denial of the transfer of the licenses, specifically on whether the GLC’s denial of the applications is “based on a misinterpretation of Georgia law and violates equal protection.”

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