Torch Electronics ‘No Chance’ Games Face Seizure After Tennessee Ruling

• Court rejects Torch’s claim machines weren’t games of chance
• District Attorney Mulroy warns store owners to remove devices
• Pre-reveal feature fails to exempt machines from gambling law

A court in Tennessee ruled Monday that “No Chance Games” – electronic devices designed to resemble slot machines – are illegal under state law and authorized their immediate seizure.

The ruling closes a legal loophole that was used by the machines’ manufacturer, Missouri-based Torch Electronics, to argue its games escaped the definition of gambling because they eliminated the element of chance.

Torch had installed the devices widely in convenience stores and gas stations in the state, claiming they were pre-set, skill-based games.

Legal? No Chance

Torch argued their systems provided players with pre-determined outcomes, sometimes revealed ahead of play. This negated the “chance” component required by law, the company claimed.

On some devices, a “prize viewer” button lets users preview the next result before deciding to pay and play. The company argued these features placed the devices outside the state’s legal definition of gambling, which involves “risking anything of value for a profit whose return is to any degree contingent on chance.”

Often with pre-reveal machines, in practice, players play through a series of spins rather than just one, which means they are effectively paying to see the next spin, which remains unknown.

“This is a win for public safety, consumer protection, and the rule of law,” District Attorney Steve Mulroy said in a press release. “The court made it clear: these machines are illegal, and we have the authority to go after those who profit from them.”

He added his office would enforce the ruling aggressively, warning proprietors to remove machines or face confiscation and prosecution.

Gambling Laws Fit for Purpose

Torch had also asserted that Tennessee’s gambling laws, specifically the elements of consideration, chance, and prize, were vague. The court disagreed, finding state law clear and enforceable and sufficient to support seizure and prosecution.

Mulroy said many machines still remain in Shelby County, which includes Memphis, and warned that businesses must cut ties with Torch or risk losing them.

“If you are a proprietor of one of these stores, be on notice. They’re not legal, you need to get rid of them or they will be seized,” he warned.

It’s unclear whether Torch intends to appeal the ruling.