Georgia Brothers Get 20 Years for COAM Gambling Fraud Scheme

• Georgia brothers sentenced to 20 years over COAM gambling fraud
• Scheme targeted video poker-style machines across multiple Georgia counties
• Judge orders probation, bans, and $86,000 restitution to lottery

Two brothers from Sparta, Ga. were handed lengthy prison sentences last week for a  scam that bilked cash from video poker-style machines in convenience stores and gas stations across the state.

Quinton Watts, 27, and Phillip Watts, 31, were each sentenced to 20 years in Columbia County Superior Court on Thursday after they were convicted on felony charges of lottery ticket fraud, theft by taking, and possession of tools for the commission of a crime.

The method the brothers used to defraud the Georgia Lottery-regulated “skill gaming” terminals, known as Coin Operated Amusement Machines, or COAMs, is unclear from local reports.

Cash Payouts Illegal

COAMs are legally installed in stores and award players points that can be redeemed for merchandise, fuel credits, or Georgia Lottery tickets. Cash payouts from the machines are illegal under state law, but they’re not uncommon – venues that offer them are more popular with players, thereby increasing each machine’s profitability.

COAM fraud typically involves exploiting weaknesses around credit tracking and prize redemption, the stage where points are logged, verified, and converted into rewards. Points might be converted into prohibited payouts or recorded in ways that don’t reflect legitimate play, for example.

This might involve falsified machine records, repeated or inflated redemptions, or the use of unauthorized keys or devices to open service panels normally reserved for licensed operators or technicians.

Authorities have not said whether any of those methods were used in the Watts case, although the lack of charges like “burglary” and “criminal damage” indicate something more subtle than simply smashing their way into machines.

Stiff Sentences

At sentencing, Columbia County Superior Court Judge Barry A. Fleming ordered Quinton Watts to serve 45 years on probation after completing his prison term and Phillip Watts to serve 35 years on probation.

Both men were also banned from Columbia County, prohibited from entering any of the stores where the crimes occurred, and barred from playing or accessing COAMs anywhere in the state.

The judge also ordered restitution of more than $86,000 to be paid to the Georgia Lottery Commission.

The Georgia Bureau of Investigation’s Commercial Gambling Unit reiterated in a statement that cash payouts from COAMs are illegal and that violations will be prosecuted.