Missouri casinos challenge ruling in slot machine case
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JEFFERSON CITY — The organization representing Missouri’s 13 riverboat casinos is asking a state appeals court for another chance to prove that unregulated slot machines in gas stations, bars and truck stops are illegal.
In a filing Wednesday, the Missouri Gaming Association is seeking a decision that would stop Torch Electronics and a convenience store operator from “engaging in illegal competition” against the casinos, which are licensed, taxed and regulated.
“Torch Electronics is an illegal competitor and its illegal gaming devices are harming our members,” the gaming association said in a statement. “Torch’s illegal gaming devices take money away from veterans, local cities and education in the form of lost tax revenue and admission fees and this needs to be stopped.”
The appeal comes on the heels of a decision Monday by Cole County Circuit Judge Daniel Green who dismissed a lawsuit by Wildwood-based Torch that sought to block the Missouri State Highway Patrol from investigating whether the company’s machines are illegal.
Torch contends its machines, which look similar to the slot machines at the casinos but are not taxed or regulated, are for amusement purposes even though players can win money by playing them.
In his decision, Green tossed the lawsuit saying Torch and Warrenton Oil Co. cannot use the civil court process to block the highway patrol from exercising its police powers.
Charles Hatfield, the attorney for Torch, also has said the decision would be appealed. Torch wants a decision that declares the machines are legal and that playing them does not meet the legal definition of gambling.
The casinos have filed a counterclaim asking the courts to declare Torch’s gaming devices are illegal under the state constitution.
“We look forward to the decision being reversed, to trying our case and stopping Torch’s illegal competition,” the gaming association said.
The casinos say they have made investments in their facilities, pay state and local taxes and must comply with state regulators while companies like Torch are operating with no oversight.
Not only does Torch not pay into a fund for problem gambling, but there are few, if any, guardrails in place to stop minors from playing their machines.
Torch is among the largest purveyors of unregulated slot machines in the state, but there are other operators who have stepped in while the 2021 lawsuit has been pending.
Previous to the filing of Torch’s lawsuit, state and local police had been filing illegal gambling cases with prosecutors. Those have virtually stopped pending the outcome of the case.
