Judge Dismisses RICO Suit Against Missouri Gray Market Gaming Outfit


A federal judge has dismissed a RICO case against Torch Electronics, a gray-market gaming machine company in Missouri, stating that losing money at gambling can simply be avoided by choosing not to play. The case was brought by seven plaintiffs who claimed financial injury from Torch Electronics’ machines. However, the judge ruled that the damage was self-inflicted and therefore the plaintiffs lacked standing. Torch Electronics’ terminals, although resembling slots, argue that they have removed the element of chance and are exempt from Missouri gambling laws. The machines are placed in convenience stores, bars, and truck stops. The ruling has drawn controversy as it may misunderstand the nature of gambling addiction and impulse control. The decision disappointed the plaintiffs’ attorney, who is considering an appeal or a fresh suit. The Missouri Gaming Commission considers Torch’s games as gambling devices, but legislative attempts to address the issue have been hindered by conflicting interests from lobbyists.



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