A decisive legal blow has fallen upon the proliferation of slot-style machines rapidly appearing in Missouri businesses. A federal judge has ruled these devices are illegal under existing state law, effectively halting their spread through bars, restaurants, and convenience stores.
The ruling, delivered Friday, stems from a lawsuit brought by TNT Amusements, Inc. against Torch Electronics, LLC – the company responsible for the controversial “no-chance” machines. These machines were aggressively marketed as a legal alternative to traditional slot machines, a claim the court has now refuted.
A five-day trial last fall revealed a pattern of misleading statements by Torch Electronics. Jurors agreed, awarding TNT Amusements $500,000, recognizing both lost profits and significant damage to the company’s reputation.
Judge John A. Ross meticulously dismantled Torch’s defense, stating the machines undeniably fit Missouri’s definition of a “gambling device.” He emphasized that players “risk[] something of value upon the outcome of a contest of chance,” a core element of illegal gambling activity.
The judge specifically rejected the argument that a “prize viewer” eliminated chance, comparing the unpredictable prize multipliers to a shuffled deck of cards – entirely beyond player control. The court made it clear that widespread operation does not equate to legality.
Torch Electronics has vowed to appeal the decision, maintaining confidence in their games’ adherence to Missouri law. However, the ruling signals a significant shift in the legal landscape surrounding these machines.
This legal challenge coincides with increased scrutiny from Missouri’s Attorney General, who has launched lawsuits and enforcement actions targeting similar devices across the state. The Attorney General’s office views these machines as detrimental to communities and a potential magnet for organized crime.
Simultaneously, the Missouri House is debating the future of these machines. House Bill 2989 proposes a statewide regulatory framework, aiming to bring order and potential revenue to the market. However, critics fear it could dramatically expand gambling access beyond existing casinos.
The legal battle now shifts to financial remedies. TNT Amusements is seeking not only the damages awarded by the jury but also attorney fees and a portion of Torch’s profits generated by the machines.
Judge Ross has agreed that the case meets the criteria for awarding attorney fees, citing the compelling evidence presented at trial. He has also opened the door to “disgorgement” – forcing Torch to relinquish profits earned from the illegal devices.
However, the judge cautioned against a sweeping statewide payout, recognizing the potential for an excessive windfall. Instead, he has ordered both companies to collaborate on a focused financial review, concentrating on areas where they directly competed.
The outcome of this case will have far-reaching consequences, potentially reshaping the gaming landscape in Missouri and setting a precedent for similar challenges nationwide. The fight over these machines is far from over, but the initial legal victory represents a major turning point.
