False claims
A federal jury in St Louis has ruled that a controversial Missouri-based maker and distributor of video gaming terminals (VGTs) stole business from a local competitor by falsely promoting its machines as ‘no-chance’ games.
a significant legal victory on Monday for TNT Entertainment
The Eastern District of Missouri’s Senior District Judge John Ross presided over the trial, which lasted most of last week, and ended with a significant legal victory on Monday for TNT Entertainment over Torch Electronics.
The jury rules that Torch’s VGTs violated Missouri gambling laws and that the firm unfairly forced the traditional coin-operated games supplier out of 20 locations.
Torch must pay TNT $500,000 in compensation. TNT stated the verdict was a starting point for justice.
Not buying no-chance
Monday’s verdict was the first court decision touching on whether Torch’s VGTs, installed in convenience stores, fraternal halls and other venues since 2017, violate Missouri gambling laws.
falsely advertising its devices as no-chance games.”
After the landmark ruling, TNT’s Finneran warned the case against Torch was not over. The attorney stated his client will now “seek disgorgement of the millions in profits that Torch has obtained through falsely advertising its devices as no-chance games.”
Throughout last week’s trial, Torch testified to jurors in St Louis that its games were legal because there was no degree of chance in the outcome. A sales pitch, according to TNT, that led retailers to ditch its coin-op classics in favor of the VGT devices.
Judge Ross, however, asked jurors to consider two statements Torch pitched to sales prospects, namely that its devices don’t fit any definition of a ‘gambling device’ under Missouri law and, as such, they’re not prohibited. Ross instructed jurors to consider whether the statements Torch made to get business were true or false.
Watch this space
The jury didn’t buy Torch’s claims its games were no-chance because players could view the next outcome and the “sequential nature of the prize determinations.”
An opinion by the Missouri Gaming Commission (MSG) cited by Judge Ross, however, stated that the number of possible starting points on Torch games makes them illegal games of chance. The jury eventually concurred, with Finnegan thanking them “for seeing through Torch’s false advertising.”
“Now that the jury has rendered its verdict, we look forward to seeking an official judgment from the court as to the illegality of the Torch devices,” TNT said.
Torch, which operates around 15,000 VGTs across Missouri according to the MSG, said it will appeal Monday’s verdict.
