Missouri Bar Owner Files Lawsuit Against AG for Action Against Gray-Market Gaming Devices


Published on: June 24, 2026, at 11:33 AM.

Updated on: June 24, 2026, at 11:33 AM.

  • James Schappe, a bar proprietor in St. Charles, asserts that Missouri’s attorney general overreached by labeling gray-market machines as illegal.
  • The lawsuit contends that establishments with non-Torch machines shouldn’t be affected by a federal ruling against Torch Electronics.
  • This case could clarify whether Missouri regulators or legislators dictate the future of approximately 20,000 gaming devices.

A St. Charles, Missouri bar owner has filed a lawsuit against Attorney General Catherine Hanaway (R), claiming she has overstepped her legal boundaries in her initiative against “no-chance” gaming systems.

Missouri AG Catherine Hanaway, gray-market gaming, lawsuit against no-chance machines
Missouri Attorney General Catherine Hanaway has escalated her efforts against no-chance machines, buoyed by a ruling deeming Torch Electronics’ games as illegal. What does this mean for the others? (Image: Missouri Attorney General’s Office)

James Schappe, owner of Tuners Bar & Grill, contends that Hanaway lacks the authority to criminalize these machines absent legislative action from the Missouri General Assembly.

Legal Status of ‘No Chance’ Machines

Following a federal judge’s February ruling that deemed machines operated by Torch Electronics illegal under Missouri law, Hanaway announced a crackdown on these terminals. This led her to intensify enforcement against all devices not operated in state-licensed casinos.

Schappe argues that since he does not operate Torch’s machines, he should not be held accountable for the ruling, emphasizing that lawmakers have yet to take action to either ban or regulate these devices.

“The Attorney General cannot fill legislative gaps with her own criminal judgments,” asserts the plaintiff.

He further stated that the AG “demands retailers to interpret the law while she retains the discretion to later determine which machines are deemed illegal.”

Understanding No-Chance Machines

Missouri previously had around 20,000 gray-market gaming machines prior to the crackdown, primarily found in bars, convenience stores, and gas stations. These devices, marketed as “no-chance” or “skill” games, employ a “pre-reveal” feature that lets players see the result of the next play before placing a wager.

Manufacturers, including Torch, argue that the advanced result visibility means the games lack the element of chance required to qualify as gambling under Missouri law.

Instead of random number generators, these machines operate using a set sequence of outcomes, which the manufacturers claim differentiates them from traditional slot machines.

In September 2025, a civil jury in Missouri dismissed this rationale, declaring that the extensive sequence of Torch’s games and the random starting point upon reboot made the outcomes effectively unpredictable.

Moreover, as players typically engage with a series of spins, they are effectively spending to view the outcomes of plays that remain concealed until after their wagers.

Gambling Classification

In February, U.S. District Court Judge John Ross concurred, ruling that Torch’s machines qualify as “gambling games.” The company has since committed to ceasing operations in Missouri until the legislature makes a determination on whether to authorize and regulate such devices.

In the meantime, Schappe is pursuing a court decision to prevent any further enforcement actions against his establishment, along with a declaration that Missouri’s gambling regulations do not pertain to the machines he operates.



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