{"id":9125,"date":"2026-04-08T15:40:39","date_gmt":"2026-04-08T20:40:39","guid":{"rendered":"https:\/\/westplexnews.com\/index.php\/2026\/04\/08\/missouri-company-behind-gas-station-slot-machines-suspending-operations-amid-criminal-probe\/"},"modified":"2026-04-08T15:40:39","modified_gmt":"2026-04-08T20:40:39","slug":"missouri-company-behind-gas-station-slot-machines-suspending-operations-amid-criminal-probe","status":"publish","type":"post","link":"https:\/\/westplexnews.com\/index.php\/2026\/04\/08\/missouri-company-behind-gas-station-slot-machines-suspending-operations-amid-criminal-probe\/","title":{"rendered":"Missouri company behind gas station slot machines suspending operations amid criminal probe"},"content":{"rendered":"
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Two “no-chance” gambling machines await customers in 2021 at a Columbia convenience store (Rudi Keller\/Missouri Independent).<\/p>\n<\/figcaption><\/figure>\n

After years of <\/span>legal battles<\/span><\/a> to protect its business from criminal prosecution, Torch Electronics will suspend operations of its slot machines in Missouri under pressure from state Attorney General Catherine Hanaway and the U.S. Department of Justice.<\/span><\/p>\n

In a letter sent to retailers on Monday, the Wildwood-based company said it would turn its games off on Friday as it awaits the results of a joint state-federal investigation.<\/span><\/p>\n

\u201cThe U.S. Attorney\u2019s office and the Missouri Attorney General have indicated they are going to move forward with criminal investigations and proceedings,\u201d the company said in the letter obtained by The Independent. \u201cWhile we are confident in our position, criminal proceedings create real uncertainty for our business \u2014 and more importantly, they create risk for all of you. We take that seriously, and we want to do everything we can to protect you.\u201d<\/span><\/p>\n

Hanaway\u2019s office, in a news release, said Torch shut down its games \u201cto avoid prosecution.\u201d She called Torch \u201cthe largest provider of illegal gambling devices\u201d in the state and said that while the suspension is a good thing, it will not end enforcement efforts.<\/span><\/p>\n

\u201cWhile this is a tremendous step forward for Missouri, our office will continue to investigate and seek enforcement action against other operators, manufacturers, and retail stores facilitating this illegal activity,\u201d Hanaway said.<\/span><\/p>\n

The U.S. Attorney\u2019s Office for the Eastern District of Missouri declined to comment on the investigation or Torch\u2019s action. Torch spokesman Gregg Keller declined to comment on the decision to suspend operations.<\/span><\/p>\n

Torch has been placing its games in retail locations such as convenience stores, bars and fraternal halls for nearly a decade. It has aggressively used the courts to stall prosecution.<\/span><\/p>\n

The Missouri State Highway Patrol filed about 200 cases with county prosecutors in 2019 and 2020, alleging the machines violate state law. But <\/span>few actual charges were filed<\/span><\/a> in court and most targeted convenience store owners for misdemeanor violations.<\/span><\/p>\n

The only time Torch itself has been targeted for criminal prosecution was in Linn County. But that case was <\/span>dropped early in 2023<\/span><\/a> after the prosecutor\u2019s office in the county changed hands in the 2022 election.<\/span><\/p>\n

In state lawsuits against the Missouri State Highway Patrol, <\/span>the city of Springfield<\/span><\/a> and in federal court <\/span>against another video game supplier<\/span><\/a>, Torch has argued that its machines are legal because they do not include an element of chance to determine whether players win their bets.<\/span><\/p>\n

There is a pre-reveal function on every Torch game that allows a player to see whether the next wager in a particular game will win a prize. Torch contends the pre-reveal feature removes the element of chance.<\/span><\/p>\n

The legal uncertainty led many to call the machines \u201cgray market games.\u201d<\/span><\/p>\n

Until Hanaway took office last year following the resignation of Andrew Bailey, there had been no effort in the attorney general\u2019s office to participate in prosecutions.<\/span><\/p>\n

In 2023, Bailey withdrew from defending the Missouri State Highway Patrol in a lawsuit brought by Torch after receiving campaign contributions from committees funded by the company.<\/span><\/p>\n

In that case, the Western District Missouri Court of Appeals ruled last year that Torch had no grounds to sue because a civil case cannot be used to <\/span>block criminal prosecution<\/span><\/a>.<\/span><\/p>\n

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Federal judge rules Missouri\u2019s gas station slot machines are illegal gambling devices<\/a><\/p>\n<\/blockquote>\n

And in the federal case involving the competitor, a jury in October ordered Torch to <\/span>pay $500,000<\/span><\/a> for luring away business with illegal slot machines. In a written decision in the case, handed down in February, <\/span>U.S. District Judge John Ross declared<\/span><\/a> that Torch\u2019s machines \u201cmeet the statutory definition of \u2018gambling device\u2019 and are therefore illegal under Missouri law when played outside a licensed casino.\u201d<\/span><\/p>\n

Ross\u2019 ruling was followed by Hanaway stepping up prosecutions around the state. Her office has filed felony gambling charges and civil lawsuits against <\/span>convenience store owners in Greene<\/span><\/a> and <\/span>Dunklin counties<\/span><\/a>.<\/span><\/p>\n

The number of Torch machines in operation around the state is unknown, as are the amounts of money being wagered. In <\/span>legislative testimony last week<\/span><\/a>,\u00a0 Lynn Wallis, owner of a company that operates 50 convenience stores, estimated there are 30,000 to 40,000 unregulated machines across Missouri.<\/span><\/p>\n

Her company has machines in 18 locations, Wallis said, and banked more than $1.5 million in profits in 2025.<\/span><\/p>\n

Wallis testified during a hearing of the state Senate Select Committee on Gaming that is considering <\/span>a bill<\/span><\/a> to allow regulated slot machine games licensed by the Missouri Lottery. The bill, which <\/span>narrowly passed the House<\/span><\/a>, has been one of the most heavily lobbied bills of this year\u2019s session.<\/span><\/p>\n

State Senate President Pro Tem Cindy O\u2019Laughlin, the Shelbina Republican who chairs the select committee, has been a harsh critic of the convenience store slot machines.<\/span><\/p>\n

\u201cI think this is appropriate,\u201d O\u2019Laughlin said in a text to The Independent when asked about Torch\u2019s actions to shut down its games.<\/span><\/p>\n

Gambling interests are among the state\u2019s most prolific political donors. An analysis by The Independent as part of its coverage of the video lottery bill debate shows gambling interests gave $3.3 million to campaigns since the start of 2025.<\/span><\/p>\n

Over the past year, Torch donated $650,000 to political action committees run by its lobbyist, former House Speaker Steve Tilley. Warrenton Oil \u2014 whose convenience stores host many Torch machines \u2014 contributed another $135,000 to those PACs.<\/span><\/p>\n

In the letter to retailers, Torch said it would shut the machines down and post a notice to customers on each that the game is not available \u201cwhile we wait for clarity on the new legislation.\u201d<\/span><\/p>\n

The letter said it would remove games from any location where the retailer no longer wanted them. The letter also asked retailers to contact legislators with support for the video lottery bill.<\/span><\/p>\n

\u201cWe hope this process leads to a fully regulated VLT product that is good for everyone \u2014Torch, you and our customers,\u201d the letter stated.<\/span><\/p>\n

If Torch were convicted of gambling crimes, it would be barred from participating in a video lottery program.<\/span><\/p>\n

\u201cTorch\u2019s agreement to proactively halt these operations,\u201d Hanaway said in the release, \u201csignals clearly that there has never been a gray market.\u201d<\/span><\/p>\n

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