The "gray market" slot machines that have grown across Missouri's convenience stores, taverns, and restaurants were dealt a serious blow on Monday by a federal judge.
According to U.S. District Judge John A. Ross, the machines sold and distributed by Torch Electronics, a company situated in Wildwood, Missouri, are considered "gambling devices" and are therefore prohibited by Missouri law when used outside of a casino with a license.
The games, which resemble casino slots but are found in unregulated places like neighborhood bars and gas station aisles, are frequently marketed as "no chance" or "skill" machines. The ruling allows regulators and prosecutors to take more aggressive action against the machines, which, in contrast to casino slots, are untaxed and without consumer protections.
TNT Amusements, a distributor of coin-operated arcade games, such as pinball machines and vintage video cabinets, filed the lawsuit. In 2019, the company filed a lawsuit in a state court in Missouri, alleging Torch Electronics of tortious interference with commercial ties and unfair competition.
According to TNT, Torch convinced companies in Missouri to replace their amusement machines with illicit gambling equipment. In 2023, the case was transferred to federal court.
After five days of testimony, a federal jury in late September 2025 issued a decision in favor of TNT after concluding that one or more of Torch's marketing claims regarding the lack of "chance" were untrue or deceptive. Among these were the company's assertions regarding the machines' "Prize Viewer," a pre-reveal function that Torch claimed eliminated chance.
Following the jury's $500,000 damages award, the court considered TNT's unresolved motion for a declaratory judgment about whether Torch's machines are prohibited by Missouri law as gambling devices.
According to Ross, the devices have "multiple elements of chance," as demonstrated by expert testimony and trial evidence, and the games can be utilized for gambling as defined by Missouri law.
He rejected the notion that a pre-reveal mechanism turns the machines into legal amusement devices, citing, among other things, the design of reward pools and the way outcomes are organized and shown to participants.
Ross pointed out that courts in other countries have consistently refused to accept "pre-reveal" features as a valid remedy. He cited a Tennessee verdict from July 2025 that declared Torch's "No Chance Games" unlawful under the state's gambling regulations, which he claimed were "nearly identical" to Missouri's in many ways.
Although the terminals are referred to as "slot machines" in headlines, Ross specifically rejected to declare that the gadgets should be classified as such. He wrote that a declaration was not required to settle the issue because the question was not specifically presented to the jury.They are prohibited "gambling devices" outside of casinos, according to his official ruling.
The leading law enforcement agency in Missouri has already demonstrated that it is prepared to take a tough stance against the machines. Since taking office in September 2025, Attorney General Catherine Hanaway has said in public that her office has the means to seek action against their operators.
Torch stated in a statement that it was "confident our games adhere to the letter and the spirit of Missouri law" and that it would appeal the decision.
