Torch Electronics is a Missouri company that offers video slots machines. One of its competitors has threatened to sue it. TNT Amusements is a local gaming machine operator that claims Torch’s offers are illegal and threaten its business.
TNT claimed that TNT’s profits have plunged since its competitor began to illegally sell its products at amusement places. Torch Electronics is alleged to have caused TNT’s profit drop and will be seeking damages of three times its lost profits.
The machines of Torch Electronics are easily accessible by customers as they can be found in convenience stores and truck stops throughout Missouri. TNT is losing customers to Torch Electronics, which allows players gamble without having to go to casinos.
Missouri law states that only certain gambling establishments are allowed to offer gambling. Operators must also have a license to offer games to local customers.
Therefore, Torch’s legality is questionable considering that it doesn’t have a license. It is not the first time that it has been sued. In 2019, TNT took action against another competitor. The former company demanded the closure of Torch’s slots at a Cuban truck shop. But, nothing was done.
Torch believes its offerings are legal
Torch claims its offerings are legal because they don’t constitute gambling. Although Torch’s games can be described as money games, there is one thing that makes them different from traditional gambling machines. The company explains that the machines can tell players if their next bet will result in a win or loss.
Torch’s machines use the state’s definitions of gambling to avoid legal trouble. This clever strategy has enabled Torch to distribute more machines throughout the state to the dismay and surprise of its competitors.
Despite the fact that the machines were being exploited, the Missouri Gaming Commission (and many other counties in the state) still consider them illegal. However, it has been difficult to crack down on these machines at the state level. Governor Mike Parson stated that the local county prosecutors should decide how to proceed.
TNT’s lawsuit against Torch Electronics is coming several days after a class action lawsuit was filed at Missouri’s Western District Court. According to the prosecution Torch is guilty federal racketeering as well as violating state consumer protection laws.
