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Federal Judge Declares Missouri’s Gas-Station Slot Machines Illegal

House lawmakers move a bill to create a licensed video lottery system to replace the unregulated games.

Overview

  • U.S. District Judge John A. Ross ruled the devices found in bars, restaurants and convenience stores meet Missouri’s definition of a gambling device and are unlawful outside licensed casinos.
  • The ruling follows an October jury verdict that awarded TNT Amusements $500,000 from Torch Electronics over false and misleading claims about the machines’ legality.
  • Attorney General Catherine Hanaway has filed lawsuits against retailers, says her office can seize illegal devices with or without local prosecutors, and is assisting a federal investigation into money-laundering and banking questions.
  • Torch Electronics maintains its games comply with state law and says it will appeal after final judgment is entered.
  • The House perfected legislation to let the Missouri Lottery license video lottery terminals with at least 80% payouts, dedicate roughly one-third of profits to education, add a 3% local tax and allow a two-year transition, while the judge approved pursuit of TNT’s attorney fees and set a targeted process to consider disgorgement.