A federal judge in Missouri has ruled that the “no-chance” slot machines found in gas stations, bars, and restaurants across the state are illegal gambling devices under state law. U.S. District Judge John A. Ross handed down the judgment on February 13 in TNT Amusements, Inc. v. Torch Electronics, LLC, a major setback for Torch Electronics and others that operate the unregulated “no-chance” machines.
In the 25-page decision, Ross wrote that the machines operated by Wildwood-based Torch Electronics “meet the statutory definition of ‘gambling device’ and are therefore illegal under Missouri law when played outside a licensed casino.”
In the ruling, the court specifically rejected the company’s argument that its “pre-reveal” feature, which gives players a chance to see the outcome of a game before they play, doesn’t make the games exempt from gambling statutes. Ross issued a partial declaratory judgment for TNT Amusements after concluding that Torch’s devices contain “multiple elements of chance.”
Judicial Ruling Rejects ‘Pre-Reveal’ Gimmicks
In his analysis, Ross explained that, even with an optional “prize viewer,” the slot machines still rely heavily on chance. He noted that players often have to play through repeated losing turns before they ever have an opportunity to see a potential win.
Torch argued that its optional preview feature eliminates chance by letting players see the next prize amount before they play. The judge rejected that framing, writing that “the prize viewer only allows a player to see the very next prize amount,” not what happens “two or three turns in the future,” and added: “The availability of the prize viewer feature is therefore immaterial” under the statute’s “used or usable” standard.
Ross pointed out that “pre-reveal gimmicks have been universally rejected as a basis to exempt similar games from state gambling laws.” The court also highlighted that the machines don’t return change to players when their balances fall below $1.00, forcing them to wager any remaining funds on outcomes that aren’t predictable.
AG Steps Up Enforcement as Legislature Considers Video Lottery Plan
The ruling comes as Missouri Attorney General Catherine Hanaway ramps up enforcement efforts. Her office recently filed lawsuits against retail shops in Dunklin County, alleging they were operating illegal gambling machines.
In a press release, Hanaway said, “When retail shops turn a blind eye or facilitate a space for illegal gambling, they are not only ignoring the law, they are putting our communities at risk,” adding, “Missouri’s laws are clear: It is illegal to provide access to unregulated machines and games for gambling purposes.”
On the legislative front, on Monday, Missouri House members granted preliminary approval for a bill that would replace the current machines with a state-run video lottery system. The bill, sponsored by Rep. Bill Hardwick, aims to “clarify the law” for business owners by replacing unregulated terminals with machines licensed and operated by the Missouri Lottery. A portion of the profits from these regulated machines would go to state education.
October Jury Verdict Set Stage for Declaratory Ruling
Last week’s declaratory judgment follows a five-day federal trial last fall, when a jury found Torch’s marketing claims about “no chance” play to be false and awarded its competitor, TNT Amusements, $500,000 in damages.
The evidence presented at trial showed the sheer scale of the operation: between 2017 and 2023, players wagered about $32 million on Torch machines at locations where TNT also operated.
To find Torch liable, jurors were instructed to evaluate the company’s statements, including “In the No Chance Game, chance has absolutely no role in any possible outcome,” and “The ‘Prize Viewer’ option on NCGs eliminates chance,” along with the claim that the machines “do not fit any definition of a ‘gambling device’ in the state of Missouri and [are] not prohibited for use.”
While the jury focused on false advertising and unfair competition, their factual finding that “chance has absolutely no role” was a false statement that paved the way for Judge Ross’s legal declaration.
Torch spokesperson Gregg Keller told the Missouri Independent that, “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.”
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A federal judge in Missouri has ruled that the “no-chance” slot machines found in gas stations, bars, and restaurants across the state are illegal gambling devices under state law. U.S. District Judge John A. Ross handed down the judgment on February 13 in TNT Amusements, Inc. v. Torch Electronics, LLC, a major setback for Torch
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