Torch busts out: gaming machines ruled illegal

TNT Amusements, Inc. makes game machines for use in Missouri retail locations such as convenience stores. However, some stores chose to replace their TNT games with the controversial “no-chance” gaming machines made by Torch Electronics, cutting into TNT’s business. TNT has long argued that “no-chance” gaming machines are illegal gambling machines, so competition by Torch was unlawful and unfair. They first turned to lobbyists for help in 2014, when they attempted to definitively classify their competitor’s games as unlawful gambling machines which are prohibited by § 572.010 RSMo. from being operated in retail locations. As the voices calling for the removal of the Torch machines grew louder, Torch’s apparent influence prevented any conclusive guidance being given at the state level—until very recently. In February, TNT won a declaratory judgment against Torch in the U.S. District Court for the Eastern District of Missouri (case No. 4:23-CV-330-JAR), ruling that these “no-chance” games are illegal gambling machines under Missouri law.

Torch Electronics had previously relied on a loophole to preclude their rebranded slot machines from classification as gambling machines. Each round, the player can see what the result of the very next round will be before playing if they use an optional “prize viewer” feature (hence the claim that no chance is involved in playing the games). However, they do not know what the result of the round two turns in the future will be, and this is the unknown that the players are gambling on. The district judge’s decision concluded that Torch’s games are gambling machines that may only be operated legally in licensed casinos.

The current Missouri Attorney General had already begun actions against convenience stores housing such illegal gambling machines, and this court decision will likely add momentum to that effort. A press release from the office of the Attorney General states, “(t)o anyone housing or operating these illegal devices, General Hanaway demands that you unplug, shut down, and remove the devices immediately. Her Office is prepared to go to all corners of the State to eradicate illegal gaming operations.” The Attorney General’s office has reported it has already filed suit against at least six convenience stores for their illegal operation of gambling machines.