TLDR
- A federal judge ruled Torch Electronics’ “no-chance” gas station machines are illegal gambling devices under Missouri law
- The ruling follows an October 2025 jury verdict that ordered Torch to pay a competitor $500,000
- A Tennessee court made a similar ruling against Torch’s machines in July 2025
- Missouri’s attorney general has filed lawsuits against retailers and says a federal investigation into money laundering is underway
- The Missouri House passed a bill to create a state-run video lottery system to replace unregulated machines
A federal judge has ruled that “no-chance” gaming machines found in Missouri gas stations and convenience stores are illegal gambling devices under state law.
U.S. District Judge John A. Ross issued the ruling on Feb. 13 in a case involving Torch Electronics, one of the state’s largest operators of the machines.
The judge found that Torch’s devices meet Missouri’s legal definition of a gambling device. He wrote that they are “therefore illegal under Missouri law when operated outside a licensed casino.”
Torch has marketed the machines as “no chance” games, arguing that a “prize viewer” feature lets players see the next payout in advance. The company says this removes the element of chance.
Judge Ross disagreed. He found that outcomes still rely on shuffled prize pools and random number generators, meaning chance plays a material role even when the preview feature is available.
Second Court to Rule Against Torch
This is not the first time a court has rejected Torch’s legal argument. In July 2025, a Tennessee Chancery Court also declared the “No Chance Games” unlawful, finding that the prize viewer did not eliminate the underlying element of chance.
The Missouri ruling follows an October 2025 jury verdict in the same case. That jury found Torch misrepresented the legality of its machines and awarded $500,000 to competitor TNT Amusements.
Torch has said it will appeal. A company spokesman said they remain “confident our games adhere to the letter and the spirit of Missouri law.”
The company has spent heavily to protect its business. Over the past year, Torch donated $650,000 to political action committees run by former House Speaker Steve Tilley, who acts as its lobbyist.
Missouri Attorney General Catherine Hanaway has taken a firm stance. She has filed lawsuits against retailers operating the machines and said her office is assisting with a federal investigation involving money laundering and banking questions.
Missouri House Passes Video Lottery Bill
On Feb. 16, the Missouri House passed House Bill 2989, which would create a state-run video lottery system to replace the current unregulated machines.
Under the bill, the Missouri Lottery would license video gaming terminals for retail locations. Licensed machines would be required to pay out at least 80% of wagers as prizes.
Around one-third of profits would go toward state education programs. A 3% tax on video lottery profits would support local governments.
Companies currently operating unregulated machines would have one year to remove them from the market. An amendment added a $250 annual fee per machine to fund disability services.
The bill now moves to the Missouri Senate.
