Wildwood-based Torch Electronics announced it is suspending operation of all its gaming machines at retail locations across the state of Missouri. The devices will be turned off on Friday. The decision was made after Missouri Attorney General Katherine Hanaway and the U.S. Attorney’s Office said they intended to launch criminal investigations and take legal action against the company.
A joint investigation by state and federal prosecutors
The effort involves coordinated action by the Missouri Attorney General’s Office and the U.S. Attorney’s Office for the Eastern District of Missouri, part of the U.S. Department of Justice. In a letter to retailers, Torch said it is awaiting the results of this joint investigation and prefers to suspend operations until they are available.
The coordination between two levels of government underscores how serious they are: bringing in federal prosecutors turns a regional dispute into a matter with national implications.
Leaning on “uncertainty” and protecting partners
In a letter obtained by The Independent, Torch acknowledged that criminal proceedings create “real uncertainty” for the business and, more importantly, “risks for all of you.” “We take this seriously and want to do everything we can to protect you,” the message to partners says.
The company emphasized its confidence in the legality of its position; however, it was precisely the threat of criminal prosecution that became the decisive argument in favor of shutting the machines down.
The complex legal situation is unfolding against the backdrop of rapid growth in the online segment, which is rightly considered dangerous not only for Torch but also for all brick-and-mortar operators. Online slots are available to players 24/7, from home. The number of games in online casinos’ lineups is far greater than even in the largest brick-and-mortar counterparts. Many people are attracted by the ability to use online casino no deposit bonuses, which also cannot be found at brick-and-mortar gambling venues. Until fairly recently, such alternatives simply did not exist, but now they have appeared.
Brick-and-mortar locations with gaming machines are already facing hard times, and litigation could be the final nail in the coffin.
The Attorney General is not backing down
Katherine Hanaway was blunt in her assessment of what happened. According to her, Torch is turning off the games specifically “to avoid prosecution.” The Attorney General called the company “the state’s largest supplier of illegal gambling devices.”
The office does not intend to scale back enforcement efforts. Hanaway said investigations will continue into other operators, manufacturers, and retail stores facilitating “this illegal activity.”
Who declined to comment
The parties’ reactions broke down in a characteristic way:
- The Attorney General’s Office issued a detailed press release.
- The U.S. Attorney’s Office for the Eastern District declined to comment on the investigation and Torch’s actions.
- Torch spokesperson Gregg Keller also declined to comment on the decision to suspend operations.
Nearly ten years in the “legal gray area”
For nearly ten years, Torch placed its machines in convenience stores, bars, and fraternal halls. The business model relied on aggressive litigation tactics that delayed potential prosecution.
The company claimed its devices were legal because the outcome of the game is not determined by chance. Each machine had a preview feature that allowed the player to see the outcome of the next play before placing the bet. This very design gave rise to the term “gray-market games,” reflecting the legal uncertainty surrounding the devices.
From 200 Highway Patrol cases to a single case that was closed
In 2019 and 2020, the Missouri State Highway Patrol referred about 200 cases to county prosecutors, but few actual charges followed, and most of them involved misdemeanor charges against store owners. The only attempt to prosecute Torch itself took place in Linn County, but the case was dismissed in early 2023 after a new prosecutor took office following the 2022 election.
A federal judge put an end to it
The Missouri Court of Appeals, Western District, ruled that a civil lawsuit cannot be used to block criminal prosecution. Notably, in 2023 the Attorney General’s Office under Andrew Bailey withdrew from defending the Highway Patrol after receiving donations from entities linked to Torch.
Then came a moment that can be called a point of no return. In October, a jury ordered Torch to pay $500,000 to a competitor for poaching business with “illegal slot machines.” In February, federal judge John Ross wrote in a ruling: Torch’s devices “meet the statutory definition of a ‘gambling device’ and are therefore illegal under Missouri law when used outside a licensed casino.” After these decisions, Hanaway’s office stepped up enforcement, filing felony charges and civil lawsuits against store owners in Greene and Dunklin counties.
Thousands of machines and millions in profit
The exact number of devices and the total amount wagered remain unknown. At a Senate committee hearing on gambling, Lynn Wallis, who owns 50 stores, estimated the total number of unregulated machines in the state at 30,000–40,000. Her company has machines in 18 locations and reported profits of more than $1.5 million in 2025.
The committee is considering a bill to regulate slot-style games under the Missouri Lottery’s license. The measure passed the Missouri House of Representatives by a narrow margin and has become one of the most heavily lobbied bills this session. Senate President Pro Tem Cindy O’Laughlin, who chairs the committee, called the shutdown of the machines “appropriate.”
Political money around gambling
According to The Independent’s analysis, since the start of 2025 gambling interests have contributed $3.3 million to campaigns. Over the past year, Torch donated $650,000 to political committees of its lobbyist and former House Speaker Steve Tilley. Warrenton Oil, whose stores hosted many Torch machines, contributed another $135,000 to the same entities.
What’s next for Torch—and the broader market
According to the letter, the company will turn off the machines and place an out-of-service notice on each one “until there’s clarity on new legislation.” Torch is ready to remove the devices from places where retailers no longer want to keep them and asks partners to contact lawmakers in support of the video lottery bill. However, in the event of a conviction on gambling-related charges, the company would be barred from participating in a future legalized program.
Hanaway summed it up succinctly: “Torch’s decision to proactively halt operations clearly shows: there was no gray market.”
