Torch Electronics, maker of ‘no chance’ gaming machines, loses federal, local cases

A federal jury has ruled against Torch Electronics, the company that has placed cash-prize gambling machines – illegal in Springfield under a city ordinance – in convenience stores and other locations throughout the Queen City and the Show Me State, according to reporting in The Missouri Independent.

The Missouri Independent reported Oct. 7 on a $500,000 penalty passed down by a jury in U.S. District Court for the Eastern District of Missouri (St. Louis) in TNT Amusements Inc. v. Torch Electronics LLC et al. Torch plans to appeal the verdict.

In a decision closer to home, Greene County Circuit Court ruled against Torch on Sept. 25 in a lawsuit the company filed against the city of Springfield over the city’s efforts to enforce a ban of its machines. The court decision appears to clear the way for the city to enforce the ban.

Senior District Judge John Ross presided over the federal trial, according to U.S. District Court documents.

Court filings say the federal suit was brought by Sullivan-based TNT, doing business as Play-Mor Coin-Op, under the Racketeer Influenced and Corrupt Organizations Act. Torch Electronics is based in Wildwood, according to past SBJ reporting.

As The Independent summarized, Torch presented testimony that its games are legal because they remove the element of chance in the outcome and therefore are not gambling machines. TNT countered that those claims were improper, and they led retailers to replace TNT games with Torch offerings.

An attorney representing TNT, Richard Finneran, characterized the Torch’s claims as false advertising in an interview for The Independent’s story.

Past SBJ reporting cites the Missouri Gaming Commission in a description of the machines, which resemble slot machines and are often referred to as “no chance” or “skill gaming” machines because they reveal the outcome of the upcoming spin, removing the element of luck. Players bet on a play to advance the machine to its next pre-reveal option, and they can do so repeatedly.

By unanimous vote, Springfield City Council outlawed entertainment devices offering monetary prizes in February 2024. The ordinance outlined a strict schedule of penalties for businesses, fraternal associations or other entities that allow their use. For a first offense, a violator is subject to a minimum fine of $500. A second offense is fined $1,000, and a third offense carries a $1,000 fine plus a minimum jail sentence of 30 days. The ordinance said a court would not have the ability to suspend the minimum sentences, according to past SBJ reporting.

Springfield Police Chief Paul Williams told SBJ at the time that the ordinance went into effect immediately upon its passage. Copies of the ordinance were issued to businesses with the machines, and enforcement was slated to begin Feb. 17.

The Missouri Gaming Commission praised the City Council for taking action on the issue and asked that other government bodies do the same.

Torch Electronics filed a lawsuit against the city in Greene County Circuit Court on Feb. 29, 2024. That case, Torch Electronics LLC v. City of Springfield, Missouri, was decided in favor of the city by Judge S. Cotton Walker.

The court found the city’s decision not to renew Torch’s business license was lawful and constitutional and was based on competent and substantial evidence. The judge ruled that the city ordinance is not preempted by state law, and the city is permitted to enforce it.

In April, SBJ reported that 26 businesses had received at least one citation, and 36 citations were issued in all. Customers in many of the city’s convenience stores could easily spot the machines in operation, with enforcement of the city ordinance apparently put on hold.

SBJ asked today for a comment from city and SPD officials, but their responses were not received for inclusion in this story by today’s deadline.