Trial delayed in high-profile Missouri gambling lawsuit
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JEFFERSON CITY — A politically connected company that has flooded Missouri gas stations with unregulated slot machines convinced a judge Friday to delay the start of its trial against the state.
Attorneys for Torch Electronics and Warrenton Oil won the change after complaining that the state “dumped more than 5,000 pages of previously undisclosed documents” 10 days before the trial was scheduled to start.
Cole County Judge Daniel Green agreed to move the trial date to Oct. 3. It had been scheduled to begin Monday.
In addition to the trove of new documents, Torch attorney Chuck Hatfield said the Missouri State Highway Patrol produced a new report on whether the Wildwood-based company’s machines are illegal gambling devices. The state also introduced four possible expert witnesses.
Hatfield said his legal team needs more time to review the material and prepare for witnesses.
“There is no reason for defendants not to have made these disclosures months ago,” Hatfield wrote in his request. “These belated disclosures are inexplicable and indefensible.”
But, in April, attorneys working for Missouri Attorney General Andrew Bailey withdrew from the lawsuit citing a conflict of interest after the Republican accepted campaign contributions from political action committees linked to Torch’s lobbyist, former Missouri House Speaker Steve Tilley.
That resulted in the state having to hire outside counsel to take over the case more than two years after the lawsuit was filed. Jefferson City attorney Scott R. Pool made his first appearance in the case April 19, court records say.
Pool argued against the delay Friday, saying some of the documents and reports are “virtually identical” to material that has already been introduced.
Attorney Marc Ellinger, who is representing the Missouri Gaming Commission, also argued against rescheduling the trial, saying the case has already taken too long to litigate.
“We want to move this case forward. We’d prefer to keep the date,” Ellinger said.
Although he moved the date, Green signaled he wants to case to be resolved.
“I kind of agree with Mr. Ellinger. It needs to be done,” the judge said.
The case is being watched closely because it could result in either the games being removed from thousands of small businesses across the state or the games being deemed legal.
The Republican-controlled Legislature has been unable to pass a law regulating and taxing video lottery machines for years amid lobbying by Tilley and his team.
The gaming association, which represents the state’s legal casinos, is intervening in the case on the side of the Highway Patrol, arguing that Torch’s untaxed and unregulated machines have cut into their businesses.
Torch and Warrenton Oil sued the Missouri Department of Public Safety in 2021, seeking to stop the Highway Patrol from seizing machines as part of a crackdown on illegal gambling.
The suit was filed three days after the Highway Patrol seized three machines from a St. Clair location owned by Warrenton Oil.
In addition, the lawsuit argues state and local police “have intimidated and harassed convenience stores in Linn, Crawford, Barry, Vernon, Camden, Henry and Webster counties that license space for the Torch amusement devices.”
Torch argues that its machines are for amusement purposes, even though players can win money from them. It said the seizure of its machines caused “irreparable injury” to its business.
While Torch is suing the state, the company also is being sued in federal court over allegations that Torch owner Steve Miltenberger is running an illegal gambling conspiracy with convenience store owners.
Attorneys are seeking class action status on behalf of people who say they lost money playing the games.
A separate federal lawsuit filed by a Sullivan-based coin-operated amusement game firm argues Torch’s machines are illegal and have cut into its profits.
