Retailers, along with an industry advocacy organization, are contending that Missouri officials are improperly utilizing criminal investigations and licensing pressures to resolve a legal issue that should be addressed in the courts.
Two separate lawsuits have been filed to contest Missouri's enforcement actions against “pre-reveal” or “no-chance” gaming machines, claiming that Attorney General Catherine Hanaway is overstepping her legal boundaries.
The lawsuits assert that these enforcement measures are coercing businesses to eliminate the machines prior to a definitive ruling from Missouri courts regarding their compliance with state law.
These cases, submitted in Cole County on June 18 and June 26, were prompted by Hanaway's intensified enforcement efforts following a federal court decision in February that deemed Torch Electronics’ devices as illegal gambling apparatus.
The Missouri Licensing Advocacy Group (MOLAG) lodged the most recent complaint, representing a coalition of liquor suppliers, convenience stores, bars, and other licensed entities. The group claims that Hanaway and the Missouri Division of Alcohol and Tobacco Control (ATC) are improperly threatening the liquor and other licenses of businesses that operate these machines.
Additionally, the earlier lawsuit was initiated by Tuners Bar & Grill in St. Charles, which is seeking class-action status to represent other businesses that utilize the machines.
While both lawsuits aim to stop the enforcement actions, they focus on different elements of the state’s approach. Tuners is challenging the Attorney General’s criminal enforcement rationale, while MOLAG is concentrating on the alleged misuse of liquor-license authority to compel businesses to remove the machines.
The Turners’ lawsuit argues that it is the responsibility of state lawmakers, not the Attorney General, to define what constitutes illegal gambling. It questions whether Hanaway is essentially altering the state’s criminal code through her enforcement actions.
The complaint explains that pre-reveal devices differ from standard slot machines, as players are informed of the next outcome before deciding to continue. This, according to the plaintiffs, means users are not wagering on an uncertain future event. Therefore, they argue, these machines do not fit within Missouri’s legal definition of gambling.
Furthermore, the lawsuit claims that Missouri has never passed legislation to ban these devices, asserting that the Attorney General cannot impose her own interpretations in the absence of clear laws. The complaint seeks a court ruling declaring the state’s interpretation unconstitutional, arguing that the current statutes are unconstitutionally vague when applied to these machines.
The complaint also highlights that businesses could suffer immediate and irreparable damage if they are compelled to defend against criminal charges only after they have been filed.
For retailers in Missouri, facing prosecution does not lead to straightforward legal clarity. It entails public accusations, potential arrests, search warrants, confiscation of machines and cash, forfeiture proceedings, loss of banking relationships, landlord pressures, insurance complications, damage to licenses, termination of retail contracts, and reputational harm that cannot be fully remedied by subsequent judgments.
The second lawsuit, filed by MOLAG, places less emphasis on the legality of the machines themselves and more on the manner in which Missouri is enforcing its crackdown.
The complaint alleges that the Attorney General, ATC, and other state officials are exerting pressure on businesses to remove the controversial machines through threats related to liquor licenses.