Torch Electronics suspending all video lottery operations in Missouri

Summary

• Torch Electronics agrees to suspend VLT operations by April 10
• Missouri attorney general Catherine Hanaway leads enforcement efforts
• Federal judge ruled Torch machines are illegal gambling devices
• Springfield city ordinance bans VLTs, leading to nearly 450 citations

Missouri’s main operator of video lottery terminals, or VLTs, has agreed to suspend all operations in order to avoid prosecution, the Missouri Attorney General’s Office announced Wednesday.

Wildwood-based Torch Electronics will suspend operations of the gambling machines effective Friday, according to an AG’s Office news release. The agreement comes as the U.S. Attorney’s Office and AG’s Office continue a joint criminal investigation.

“Torch’s agreement to proactively halt these operations signals clearly that there has never been a gray market,” Attorney General Catherine Hanaway said in the release. “While 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.”

Before Hanaway took office, VLTs were seen by some as operating through a loophole in state law that outlaws “chance” games. They were often characterized as “no chance” games as they allow players to view the outcome of the next play — but not subsequent plays — before playing. Criminal prosecution of those providing access to VLTs has ramped up ever since a federal judge ruled Torch machines are considered gambling devices and therefore operating illegally when outside of a casino setting. These machines are often located inside convenience stores and bars.

A letter Torch sent to businesses that house its machines, shared with the News-Leader, restates that the company believes the VLTs are still legal.

“While we are confident in our position, criminal proceedings create real uncertainty for our business — and more importantly, they create risk for all of you,” Torch said in the letter to its partners.

The letter indicates Torch is voluntarily pausing its operations as it continues to work with the U.S. Attorney’s and AG’s offices and continue to support legislation that would create a clearer framework for VLTs. Torch notes the company is hopeful the bill is approved this legislative session.

Missourians are still likely to at least see the machines in their communities, just turned off. The letter indicates Torch intends to leave the machines in place, disable them and post a notice about the unavailability, though it is giving businesses the option to request machines be removed.

After regulation of VLTs failed to gain traction in Jefferson City, Springfield City Council passed its own ordinance effectively banning the machines within city limits in February 2024. Since then, Springfield Police Department has issued nearly 450 citations for the machines operating at local convenience stores, bars and other places. These, too, have largely been Torch-operated machines.

However, since the city enacted its ban, it has faced several legal challenges. A judge in Cole County sided with the city in a lawsuit brought by Torch after the city denied the issuance of a business license to the operator for violating the VLT ordinance. Torch appealed this ruling.

Last month, Hanaway also announced criminal charges against a Greene County manager of a convenience store southwest of Springfield in Brookline for housing 12 Torch machines.