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Missouri authorities have dealt a major blow to unregulated gambling in the state. Attorney General Catherine Hanaway announced April 8 that Torch Electronics, the state’s largest operator of illegal gambling devices, has agreed to shut down its operations.
The suspension took effect April 10, ending nearly a decade of Torch placing slot-style machines in convenience stores, bars and fraternal halls across Missouri.
The surrender follows a joint investigation by two US Attorneys’ offices and the Missouri Attorney General’s Office. While agencies declined to discuss specifics, the announcement noted that Torch agreed to suspend operations amid an ongoing criminal investigation.
Torch warns retailers of growing criminal liability
Torch sent a letter to its retail partners April 8 informing them of the suspension. In a News From The States article, the company noted the pressure it faced from top prosecutors, writing, “The US Attorney’s office and the Missouri Attorney General have indicated that they are moving forward with criminal investigations and proceedings.”
Despite its stated confidence that it would prevail in court, Torch told retailers the risks of defending against criminal charges were too great. The company thanked its partners and pledged to protect them throughout the process.
Hanaway described the shutdown as a “tremendous step forward,” noting that Torch’s decision to voluntarily halt operations clarifies that its machines never operated in a legitimate “gray area.”
Federal ruling ends “gray area” defense for illegal slots
Last year, the Missouri Court of Appeals for the Western District ruled that Torch could not use civil litigation to stave off criminal prosecution. Previously, Torch attorneys argued the company should not face criminal charges while challenging gambling laws in civil court.
That ambiguity was eliminated in February when US District Judge John Ross ruled that Torch’s machines meet the legal definition of a gambling device. Under Missouri law, such devices are prohibited outside of licensed casinos.
The ruling stemmed from a lawsuit filed by TNT Amusements Inc., a competitor. A federal jury sided with TNT in October, ordering Torch to pay more than $500,000 in damages for using illegal machines to lure away customers.
Statewide crackdown: Jackson County sets July 1 deadline
Beyond the Torch case, Hanaway has filed felony gambling charges against several convenience store owners this year. Her office is coordinating with federal prosecutors and officials in Greene and Dunklin counties.
In Jackson County, Prosecutor Melesa Johnson announced a March partnership with the Attorney General’s Office to crack down on businesses with illegal machines. Johnson set a July 1, 2026, deadline for businesses to remove the devices.
“There is no permit, no workaround, no exception,” Johnson said.
The future of regulated video lottery in Missouri
Torch attorneys indicated the company plans to lobby for a regulated video lottery program. While lawmakers have discussed a statewide video lottery system for years, no proposal has advanced.
A proposed law would create a framework for Video Lottery Terminals (VLTs) in licensed venues. However, current law bars Torch from participating in any future regulated program if the company receives a criminal conviction.
