MEMPHIS, Tenn. (WREG) — The district attorney’s office is celebrating after a court panel ruled that a company’s gaming machines are illegal under Tennessee law.
A three-judge panel of the Chancery Court ruled July 14 in favor of the Shelby County District Attorney’s Office in a case against Torch Electronics, the D.A.’s office said.
Missouri-based Torch Electronics manufactures what are called “No Chance Games,” which are similar to slot machines and are often found in gas stations and convenience stores.
The company argued that Tennessee’s gambling statutes are unconstitutionally vague, and its machines were not actually gambling devices.
But D.A. Steve Mulroy said the court’s decision affirms that these machines are illegal under Tennessee law, and law enforcement agencies are within their rights to crack down on them.
“The court made it clear: these machines are illegal, and we have the authority to go after those who profit from them. These operations are not just about games—they’re often linked to more serious crimes like money laundering and firearms offenses. We will continue to enforce the law to protect our communities,” Mulroy said in a statement.
Mulroy said his office and local law enforcement had targeted illegal gambling over the past few years. Operation Casino Royale in 2022 to 2023 seized 268 illegal gambling machines and resulted in multiple arrests and citations, while an enforcement action in July 2024 resulted in five raids.
“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,” said Mulroy.
“We still have many of these machines in Shelby County, amid some uncertainty or at least claimed uncertainty as to its exact legal status.”
Even before the legal challenges, Mulroy said his office has seen how the illegal gambling machines impact poverty-stricken areas, increasing crime or drug activity.
“When the drug task force did a sweep last summer, we found evidence of money laundering at some of the locations,” said Mulroy.
“It is possible reasonable people can disagree on the policy behind this — some state legislators decided to legalize gambling. This type or other types of gambling. They will tax it heavily, they will regulate it heavily,” said Mulroy. “But we don’t have that situation in Tennessee. The legislature has not made that decision.”