On Monday, a Tennessee judge declared that electronic devices that mimic slot machines, known as "No Chance Games," are unlawful under state law and permitted their prompt confiscation.
The decision eliminates a legal loophole that the machines' maker, Torch Electronics, based in Missouri, exploited to claim that because its games removed the element of chance, they did not qualify as gambling.
The devices, which Torch said were pre-set, skill-based games, had been routinely deployed in petrol stations and convenience stores around the state.
Is it legal? Not a Chance
According to Torch, its technologies gave players predictable results that were occasionally disclosed before the game started. The business asserted that this disregarded the legal requirement for "chance."
Before choosing to pay and play, customers can preview the next result on certain devices by clicking the "prize viewer" icon. "Risking anything of value for a profit whose return is to any degree contingent on chance" is the legal definition of gambling in the state, according to the corporation, and these qualities put the devices outside of that description.
The Shelby County Chancery Court panel, led by Judge JoeDae Jenkins, was not persuaded. According to their decision, the devices behaved and looked essentially like slot machines, imitating spinning reels, payment animations, and the psychological appeal of randomness, independent of internal programming.
In reality, gamers sometimes play through multiple spins rather than just one on pre-reveal machines, thus paying to see the following spin—which is still 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 warned owners to remove such computers or risk seizure and legal action, adding that his office will vigorously enforce the decision.
Laws Regarding Gambling Appropriately
Additionally, Torch had claimed that the principles of consideration, chance, and prize in Tennessee's gambling regulations were ambiguous. The court disagreed, ruling that state legislation was sufficient to justify seizure and prosecution because it was unambiguous and enforceable.
Mulroy cautioned that companies must sever their connections with Torch or risk losing the numerous computers that are still in Shelby County, which includes Memphis.
“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 if Torch plans to challenge the decision.