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ST. LOUIS RECORD

Wednesday, April 24, 2024

Gaming device company sues state after pressure of law enforcement crackdown

Legislation
Schatz

Bill sponsor Sen. Dave Schatz (R)

As Missouri legislative leaders push for tougher gambling machine regulations in Senate Bill 10, Torch Electronics has filed suit in Cole County, alleging that the crackdown on alleged unregulated slot machines adds up to harassment and intimidation.

“It's our belief that the machines are illegal and as illegal gaming devices, they need to be removed from convenience stores and other locations where they may be put into play,” said Mike Winter, executive director of the Missouri Gaming Association.

SB 10, if approved, would provide direction to the gaming commission and law enforcement that investigations of gambling machines are permitted and if they are found to be illegal gaming devices, it allows for their removal.

“These machines that are out there right now are unregulated,” Winter told the St. Louis Record. “There are no consumer protections, which is completely contrary to the way casinos are regulated. Casinos are heavily regulated by the gaming commission with gaming agents at the facilities all hours they are open.”

Without consumer protections, when a user of unregulated gaming devices has an issue and wants to file a complaint, there is no recourse, according to Winter.

“You are pretty much left to the whim of the operator of the store or whatever company has put the machines in service in these convenience stores or truck stops,” he said. “We believe they are gaming devices and that's why we've decided to support the legislation.”

Among the defendants that Torch Electronics LLC named in their complaint are the Missouri Department of Public Safety, Missouri Highway Patrol, and Missouri Division of Alcohol and Tobacco Control.

"These government officials continue to threaten to remove Torch devices based solely on their own incorrect interpretations of Missouri gambling laws,” wrote attorney Charles Hatfield in the lawsuit on behalf of Torch Electronics. “As such, judicial intervention is necessary to prevent the Department and the Highway Patrol from exceeding their authority by continuing to remove Torch amusement devices from convenience stores."

Hatfield did not immediately respond to requests for comment.

“Both the lawsuit and the legislation are moving forward,” Winter said. “I don't think one needs to take precedence over the other. I am assuming they will be on parallel tracks working their way through the legal system as well as the legislative system at the same time.”

According to media reports, there are some 14,000 gaming devices in question statewide.

“The patrol has a right to go after those machines as the major law enforcement agency in the state,” Winter said. “Some of the bills that are filed do give additional authority to liquor control, to go after liquor licenses and the ability to sell liquor in those establishments, if they're violating the law.”

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