The leading supplier of illegal gambling machines in Missouri has agreed to cease its operations in the state after nearly ten years of legal disputes. Torch Electronics will halt all activities starting this Friday.
The controversy revolved around whether Torch's machines were classified as illegal gambling devices under Missouri law. Attorney General Catherine Hanaway announced this agreement on Wednesday, which follows a coordinated criminal investigation with the U.S. Attorney’s Offices for both the Eastern and Western Districts of Missouri.
Hanaway emphasized that Torch's decision to stop operations indicates that there has never been a gray market for these devices. She also warned that other businesses involved in similar illegal activities would be investigated next.
In a previous ruling last year, a three-judge panel from Tennessee's Chancery Court determined that Torch's games were illegal gambling devices, following a case initiated by the Shelby County District Attorney’s Office.
Torch began placing its machines in various retail locations, including gas stations and convenience stores, across Missouri in 2017. These devices closely resemble traditional casino slot machines.
The primary distinction was a feature called “Prize Viewer,” which allowed players to see the outcome of the game before playing. Torch argued that this feature eliminated uncertainty, thus exempting them from Missouri's gambling definition, which includes consideration (money paid), offering a prize, and an element of chance.
Despite their claims, the Missouri Gaming Commission classified these machines as illegal gambling devices, not permitted outside licensed casinos. The Missouri State Highway Patrol has consistently labeled them unlawful, and various local prosecutors sought criminal charges against businesses hosting these machines. Nevertheless, Torch continued its operations for several years.
In October 2025, a federal jury ruled that Torch's slots violated Missouri gambling laws during a civil case where a competitor argued that Torch had unfairly eliminated them from 20 locations. The jury ruled in favor of TNT Amusement Inc., ordering Torch to pay $500,000 in damages, marking the first legal acknowledgment of the illegality of Torch’s games.
In February 2026, U.S. District Judge John Ross ruled that Torch's machines qualified as gambling devices under state law and were illegal due to their operation in unlicensed venues. This decision effectively ended Torch's argument that their machines existed in a legal gray area.
Over the years, Torch has invested significantly in political contributions, donating $650,000 to political action committees linked to former Missouri House Speaker Steve Tilley in the past year. These PACs also received an additional $135,000 from Warrenton Oil, which operates a chain of FastLane convenience stores hosting many of Torch's machines.
Critics have accused Tilley of using his PACs to bypass campaign contribution limits. Torch’s political influence has led to several attempts to legalize video gaming machines in Missouri, including a bill that narrowly passed the House but is still awaiting action in the Senate.
Recognizing the changing legal landscape, Torch sent a letter to retailers on Monday, stating that while they remain confident in their position, “criminal proceedings create real uncertainty for our business” and pose risks to retailers. The letter instructed retailers to deactivate all their machines.