Missouri shuts down state’s major illegal gambling device supplier after a decade-long fight.
The biggest supplier of illegal gambling devices in Missouri agreed to suspend all of its operations in the state. Torch Electronics will do so starting on Friday, after almost a decade-long legal battle.
The legal debate focused on whether its machines qualified as illegal gambling devices under state law.
Missouri Attorney General Catherine Hanaway announced the agreement on Wednesday. She explained that it follows a coordinated criminal investigation with the U.S. Attorney’s Offices of the Eastern and Western Districts of Missouri.
“Torch’s agreement to proactively halt these operations signals clearly that there has never been a gray market,” Hanaway said in a statement,
The attorney general warned that other operators, manufacturers, and retail stores that are “facilitating this illegal activity” are next on the list for investigation and enforcement.
In Tennessee last year, a three-judge panel of the Chancery Court ruled that Torch’s games constituted illegal gambling in a case brought by the Shelby County District Attorney’s Office
A Decade of Disputes
Torch started placing its games in gas stations, convenience stores and other retail locations across Missouri in 2017. These machines resemble casino-style slot machines in almost every way.
The main difference came from a feature called “Prize Viewer”, which lets players see the result of the game before playing. Torch claimed that this meant the games had no uncertainty and therefore didn’t meet the three elements of Missouri law that define gambling, which are consideration (money paid), offering a prize, and having an element of chance.
The company long argued that the differences were enough to place them outside state gambling laws. It pushed this position through a long-running battle of litigation, legislation, and political spending.
The Missouri Gaming Commission deemed the machines illegal gambling devices that aren’t allowed outside of licensed land-based casinos. The Missouri State Highway Patrol has long classified them as unlawful. Several local prosecutors attempted to bring criminal charges against the businesses that hosted these machines. However, Torch continued operating for many years.
Things shifted in October 2025 after a federal jury ruled that the slots violated Missouri gambling law. The case came as part of a civil dispute in which a competitor claimed that Torch unfairly drove it out of 20 locations. The jury ruled in favor of TNT Amusement Inc. and ordered Torch to pay $500,000 in damages. This marked the first time any court addressed the legality of Torch’s games.
In February 2026, U.S. District Judge John Ross ruled that Torch’s machines met the statutory definition of a gambling device and were therefore illegal because they operated in unlicensed casinos. Ross referenced the October jury ruling when reaching his conclusion. This ended the company’s argument that its machines fell into a legitimate gray area under state law.
Political Influence
Torch invested heavily over the years in political contributions. Over the past 12 months, it donated $650,000 to political action committees run by former Missouri House Speaker Steve Tilley. Those same PACs received another $135,000 from Warrenton Oil, which runs a large chain of FastLane convenience stores that host many Torch machines.
Critics alleged that Tilley’s multiple PACs allowed him to get around campaign contribution limits. Torch’s political influence drove several attempts to legalize video gaming machines in the state, including a bill that narrowly passed the House this session and still sits pending in the Senate.
Eventually, Torch recognized that the tide had turned. In a letter sent to retailers on Monday, the company said that while it remains confident in its position, “criminal proceedings create real uncertainty for our business” and also endanger retailers.
The letter instructed retailers to shut down all their machines by Friday and offered to remove them from any location. The games will display a notice stating that games are unavailable until there is “clarity on the new legislation.” The letter also asked retailers to contact lawmakers to support a pending video lottery bill.
Law is Clear, Says AG
Attorney General Hanaway framed the outcome as a vindication of existing Missouri law. She said that her office will continue to hold businesses accountable if they are “profiting from unlawful activity and creating chaos for lawlessness” in local communities.
Officials never disclosed how many machines Torch operates across Missouri or how much money players wagered through them. Whether Torch’s suspension becomes permanent or whether it finds a path back through new legislation remains to be seen.
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