Federal judge rules Missouri gas station slot machines illegal statewide
A federal judge has delivered a major blow to the slot-style machines that have quietly spread through Missouri bars, restaurants and convenience stores over the past several years, ruling they are illegal under state law.
In a decision handed down Friday (February 13), the U.S. District Court for the Eastern District of Missouri found that the devices violate Missouri’s gambling statutes. U.S. District Judge John A. Ross sided with TNT Amusements, Inc. in its lawsuit against Torch Electronics, LLC, the company behind the so-called “no-chance” machines placed in businesses statewide and marketed as lawful alternatives to traditional slot machines.
The dispute went to a five-day trial last fall. Jurors concluded that Torch made false and misleading statements about its machines and that those claims damaged TNT. The jury awarded TNT $500,000, including about $125,000 for lost profits and the remainder for harm to the company’s reputation and goodwill.
In a separate order issued Friday, Judge Ross determined that the machines themselves fall within Missouri’s definition of a “gambling device.” He wrote that the devices “readily meet the foregoing definitions in § 572.010 because they allow players to ‘risk[] something of value upon the outcome of a contest of chance or future contingent event not under his or her control or influence,’” making them usable in gambling activity. He later added, “Like the order of a shuffled deck of cards, the list of prize multipliers is unpredictable and beyond the player’s control,” rejecting the company’s argument that its prize viewer eliminated chance.
Though the devices have operated openly in everyday establishments for years, the court made clear that their widespread presence does not make them legal.
According to the Missouri Independent, a Torch spokesperson said: “Once the court decides the remaining issues before it and enters a final judgment, Torch will appeal, as we’re confident our games adhere to the letter and the spirit of Missouri law.”
Statewide crackdown on illegal machines
The ruling arrives as Missouri’s attorney general has also stepped up efforts against similar machines. In recent months, the office has filed lawsuits and taken enforcement actions aimed at removing what it describes as illegal gaming devices from storefronts and gas stations.
It is also unfolding alongside action at the Capitol. On Monday (February 16), House Bill 2989 was perfected with multiple amendments in the Missouri House. The measure would create a statewide regulatory framework for video lottery game terminals, establish an Illegal Gaming Enforcement Fund, and revise the state’s definition of “slot machine” or “gambling device” to include electronic or mechanical machines that require consideration and operate on any element of chance, even if the outcome is partially revealed before play. Supporters say the bill would bring order and new revenue to the market, while critics argue it could expand gambling beyond casinos.
Disgorgement and attorney fees at issue in Missouri slot machines case
With liability decided, the case now turns to money. TNT asked for both for the damages awarded by the jury, as well as attorney fees and a share of Torch’s profits tied to the machines.
Under the federal Lanham Act, a court may award attorney fees in “exceptional” cases. Judge Ross found that standard was met here, pointing to the jury’s verdict and the evidence presented at trial. He ruled that TNT can seek recovery of its reasonable attorney fees and instructed the company to submit detailed documentation to support its request.
The judge also weighed whether Torch should be forced to turn over profits earned from the devices, a remedy known as disgorgement. Trial evidence showed Torch collected millions of dollars from the machines across Missouri.
Even so, the court declined to immediately order a sweeping statewide payout. Judge Ross warned that awarding every dollar of profit could amount to what he called a “lottery-level windfall.” Instead, he directed both sides to meet and develop a plan for additional financial discovery focused on locations where TNT and Torch directly competed.
The companies must file a joint proposal outlining how that process will unfold and how long it will take.
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