Lawsuit alleges Springfield denied business, liquor licenses at Rapid Robert's

Last edited 12:27 p.m., Jan. 24, 2025 [Editor's note: A statement from the city of Springfield has been added. The statement has been edited to indicate 38 business licenses have not been renewed, instead of the originally reported 40.]

Convenience store operator Rapid Robert's Inc. has filed suit against the city of Springfield, alleging business and liquor licenses have been denied by the municipality in the wake of its ordinance last year that banned entertainment devices offering monetary prizes.

Rapid Robert's, which is based in Springfield and has 13 stores in the city, is seeking a declaratory judgment and injunctive relief in the Jan. 22 lawsuit filed in Greene County Circuit Court. According to the litigation, coin-operated amusement machines operated by Torch Electronics LLC are located in the stores.

The suit alleges the city unlawfully denied business and liquor licenses submitted by Rapid Robert's on the basis that the stores continued to house the gaming devices after Springfield City Council outlawed the machines in February 2024.

Officials with Rapid Robert's indicate in the suit that neither the company nor its employees have been found guilty in Springfield Municipal Court for violations of the gaming device ordinance. The suit alleges the edicts on the business and liquor licenses, handed down by Springfield Finance Director David Holtmann, were unlawful because compliance with the gaming device mandate is not a qualification required for renewal of a business or liquor license.

"Rapid Robert’s and the city disagree on whether the director of finance can base his decision not to renew Rapid Robert’s business licenses on whether Rapid Robert’s is in violation of Section 78-10," the suit states, referring to the gaming device ordinance. A similar disagreement exists between the entities in regard to liquor licenses, according to the suit.

The suit states that on Sept. 12, Rapid Robert's requested a formal hearing to appeal the business license decision, but that hearing has not yet been held. The decision related to its liquor licenses came Dec. 19, according to the court document.

Among requests in the suit, Rapid Robert's wants the city to be prohibited from denying business and liquor licenses based on the gaming ordinance.

In a statement provided by city spokesperson Cora Scott, the Springfield municipality declined to comment specifically on the lawsuit filed by Rapid Robert's, but issued an update on the gaming device ordinance. City officials say police officers have written 220 citations since the ordinance went into effect, with 190 prosecutions pending and the first scheduled for trial in March.

"Resistance to abiding by this law has resulted in lawsuits against the city, but we stand by the ordinance and will continue to enforce it," the statement reads. "The city has not renewed 38 business licenses and 12 liquor licenses. The city does not issue business or liquor licenses to businesses who are in violation of city code. The state of Missouri is responsible for enforcement against establishments who have had their liquor license renewal denied."

Council's February 2024 ordinance states each device on a violator’s premises will constitute a separate offense, according to past reporting. For a first offense, a violator will be subject to a minimum fine of $500. For a second offense, the fine will be $1,000, and for a third offense, there will be a $1,000 fine plus a minimum jail sentence of 30 days. The court would not have the ability to suspend the minimum sentences, the ordinance states.

In his comments prior to the vote last year, Mayor Ken McClure endorsed the measure.

“Over the last few years, our community has experienced the exponential growth of entertainment devices offering monetary prizes,” McClure said at the time. “Currently, there are literally hundreds of these devices spread throughout the city in dozens of locations, and these are proliferating throughout the state of Missouri.

“What we have witnessed is the harm to public health, safety and welfare caused by these devices, including direct and significant negative impact on adjoining businesses and properties, blight and property devaluation, crime, poverty and addiction."