Published on: April 10, 2026, 05:31h.
Updated on: April 10, 2026, 05:31h.
- Torch Ceases Operation of Gray-Market Machines in Missouri Amid Legal Threats
- Federal Court Ruling Deems Slot-Like Devices Illegal Outside Licensed Venues
- Retailers May Face Legal Consequences but Could Receive Leniency if Machines Are Removed
Torch Electronics has announced the discontinuation of its gray-market slot-like machines in Missouri, prompted by the impending possibility of legal action following a recent federal ruling that declared the devices illegal within the state.
The largest provider of gray-market machines in Missouri has communicated to its retail partners this week, informing them that operations will cease today, Friday, April 10, while a joint state and federal investigation is underway.
Retailers at Risk of Criminal Charges
The U.S. Attorney’s Office along with the Missouri Attorney General’s Office have indicated their intent to pursue criminal investigations and proceedings against those involved, the company stated in communications to its retail partners.
“While we remain confident in our legal standing, the threat of criminal proceedings poses significant uncertainty for our operations — and importantly, raises risks for all of you. We take these concerns seriously and aim to protect your interests.”
Attorney General Catherine Hanaway reaffirmed in a statement on Wednesday that it is “prohibited to provide access to unregulated devices and games intended for gambling.” She emphasized that her office will actively pursue enforcement actions against other operators, manufacturers, and retail establishments engaged in this illegal market.
Numerous Machines in Operation
It is estimated that between 14,000 to 20,000 gray-market machines are operational at bars, gas stations, and convenience stores statewide. These games, often marketed as “no-chance” or “skill” machines, resemble casino slots but operate outside regulated environments.
Torch has contended that these machines are legal due to their use of a “no-chance” or “pre-reveal” mechanism, enabling players to see the result of the next spin prior to placing a bet, which, according to the company, removes the element of chance defined by state regulations.
The machines also follow a predetermined outcome sequence instead of employing a random number generator, which Torch further claimed negates the element of chance.
However, in late September 2025, a civil jury concluded that the extended length of the outcome sequence, combined with its random starting point upon reboot, rendered it essentially unknowable.
As users typically engage in a series of spins rather than solely one, they essentially pay to discover the outcome of subsequent spins, which remains uncertain.
In February 2026, a federal judge in St. Louis ruled, for the first time, that Torch’s machines qualified as “gambling devices” and were thus illegal under Missouri laws when used outside of licensed casinos.
Potential Leniency for Compliance
In a recent interview with The Missouri Independent, Hanaway mentioned that her office would contemplate dropping existing charges against convenience-store owners housing Torch machines, provided they agree not to reactivate them following today’s deadline.
“Torch’s decision to voluntarily halt these operations clearly indicates that a gray market has never existed,” she commented to the publication.