Many readers may have fond childhood memories of playing arcade games in a variety of locations like restaurants, movie theaters, and bowling alleys. By inserting a few coins, you had the opportunity to grab your favorite plush animal from a claw machine or the potential to win a towering pile of money from a coin-pusher machine. You might argue these machines take skill, or alternatively, that they are entirely games of chance, but the law classifies them as amusement devices. Such devices come with their own set of regulations, prize limitations, and business license requirements to ensure they do not become illegal gambling machines.
Outside of arcades, adults over the age of twenty-one may be drawn to casinos with a familiar allure of flashing animations and high hopes of winning big. Gambling machines meet each of the three elements of gambling: (1) consideration (typically, cash paid); (2) a prize; and (3) chance. Casinos are subject to strict requirements and pay significant taxes that contribute to the state’s revenue.
Within the last decade, the United States has seen the rise of “gray” machines, which operate in a legal gray area. Escaping gambling regulations, these tax-free “no-chance” devices are found in bars, gas stations, and convenience stores. The unregulated machines appear to require skill (such as pattern recognition, speed, or memory), rather than being games of pure chance. While certain skills might improve your chance to win, there are many predetermined factors outside of your control.
Additionally, unlike traditional gambling machines that have unknown randomized outcomes, gray machines can display the next outcome prior to starting the game. States have increasingly rejected the idea that these are “no-chance” games. The prize preview function does not change the fact that these devices resemble gambling machines that entice players with a random chance of winning money.
On February 13, 2026, the United States District Court for the Eastern District of Missouri found that Torch Electronics, LLC’s (“Torch”) gray machines contain multiple elements of chance, thus fitting the definition of a “gambling device” under Mo. Rev. Stat. § 572.010 (the “TNT Decision”). Therefore, such devices are illegal when operated outside of a licensed Missouri casino.
The Court reasoned that the prize preview feature does not eliminate the element of chance because along with certain mechanics of the machine, the feature is entirely optional, making the devices functionally indistinguishable from gambling machines when not used. The future prize amounts are fixed before the game even starts, meaning potential earnings are “unpredictable, and beyond the player’s control.” The Court further noted that Torch cited no authority from any other state where a “pre-reveal” feature would make a gaming device legal. Courts in Iowa, North Carolina, Ohio, Florida, Pennsylvania, and Tennessee have rejected pre-reveal mechanics as a basis to exempt similar games from state gambling laws. Additionally, the Court emphasized that even players who use the prize viewer on every play are still gambling. Since the most common prize multiplier is zero, a player using the prize viewer will most often see a losing outcome, yet the device permits the player to spend the play amount in hopes of a better result on the next turn. Therefore, the Court found that the prize viewer does not change the nature of these devices, and because they have elements of chance, they are gambling devices.
Since the opinion was issued, Torch has agreed to suspend all operations and notified its customers to stop operating gray machines. Torch was the largest provider of gray machines in Missouri, but other companies distributed similar machines. The Attorney General of Missouri has pursued a statewide enforcement campaign, filing civil and criminal actions against numerous retail locations. The Attorney General has publicly stated that the “gray market era” is “over” and demanded that businesses “unplug, shut down, and remove” devices immediately. It is not illegal to own a gray machine, but business owners should ensure they are shut off and unused.
In June 2026, a lawsuit was filed challenging the Attorney General’s enforcement campaign. In Tuners Bar & Grill v. Hanaway, a class action filed in Cole County Circuit Court, a bar operator challenged the constitutionality of the enforcement effort, arguing that § 572.010(5) is unconstitutionally vague as applied to pre-reveal devices and that the Attorney General is impermissibly “criminaliz[ing] by enforcement what the legislature has not criminalized by statute.” The plaintiff argues that its devices (manufactured by Jenka Lab and Primero Games, not Torch) have never been adjudicated illegal and that the TNT Decision is non-binding federal trial court authority involving different machines and parties.
The Missouri Licensing Advocacy Group (“MOLAG”) filed a separate lawsuit seeking emergency injunctive relief against the Attorney General, the Division of Alcohol and Tobacco Control, and the Department of Public Safety. MOLAG argues that the State cannot “destroy businesses statewide by press release, checklist, and licensing threat” and that the TNT Decision does not provide a statewide standard applicable to all gray machines. Both lawsuits highlight inconsistent enforcement across Missouri counties and the absence of clear regulatory standards defining what technical features make a device unlawful.
Recently, proposed legislation intended to legalize, regulate, and implement taxes on gray machines did not pass the Senate vote in May. It is unclear whether legislators will introduce any future bills related to regulating gray machines.
In the meantime, Missouri locations with gray machines should be sure to follow existing law by shutting off the machines or seeking to have them removed. While the pending challenges argue for a different interpretation of the law, the TNT Decision provides a clear signal of legal risk. Business owners face potential adverse consequences. The Attorney General has made clear her intent to pursue enforcement statewide. Until Missouri courts or the legislature provide definitive guidance, caution is warranted. Other states may already have similar laws in place or may follow this trend in the future.
Special thanks to summer associate Cicely Williams, who contributed significantly to this post.
