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Read Full BioA Tennessee court has ruled that “No Chance Games,” slot-like devices marketed as skill-based machines, are illegal under state law.
A three-judge panel of the Chancery Court sided with the Shelby County District Attorney’s Office against the machine’s manufacturer, Torch Electronics.
The Missouri-based company argued that its No Chance Games, found in gas stations and convenience stores, do not fall under the definition of gambling in Tennessee. That’s because they involve an element of skill.
Torch Electronics also argued that Tennessee’s gambling statutes are unconstitutionally vague.
District Attorney on Ruling: “These Machines Are Illegal”
Shelby County District Attorney Steve Mulroy called the decision a significant win for law enforcement and public safety.
“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.”
According to Mulroy, his office has targeted the “skill” machines over the past few years. In one operation, “Operation Casino Royale,” which took place between 2022 and 2023, Mulroy’s office seized 268 machines, resulting in multiple arrests. In another enforcement action in July 2024, the DA office conducted five raids.
The district attorney says that his office has witnessed how the illegal machines impact poverty-stricken areas in Shelby County, which includes Memphis. They contribute to the increase in crime or drug activity.
Legal Battles in Other States
Tennessee is not alone in its efforts to address the legality of skill-based gaming machines.
Kentucky Banned Skill Games in 2023
Kentucky banned skill games in March 2023, with the ban taking effect in July of that year. However, skill game manufacturer Pace-O-Matic and owners of small businesses challenged the ban.
A county court decision in June 2024 confirmed the legislature’s decision, stating that determining gambling policies, regardless of skill component, is part of the General Assembly’s fundamental role.
Some manufacturers attempted to circumvent the ban by introducing new machines, known as “no risk” games, but Kentucky’s Attorney General also declared them illegal.
Virginia’s Ban Is Challenged
Virginia also banned skill machines in 2020, but due to COVID-19, the ban didn’t go into effect until 2021. However, the ban was legally challenged, which allowed the machines to continue operating until 2023. That’s when the Virginia Supreme Court stepped in and confirmed the ban by deeming the machines illegal.
Virginia was on the verge of legalizing and regulating skill games in 2024. A bill passed through the General Assembly, but Gov. Glenn Youngkin vetoed it and added his amendments. The Assembly rejected his amendments, leaving the machines illegal.
In an unexpected turn of events, in April this year, a county judge ruled that the Queen of Virginia (QVS2) games by Pace-O-Matic do not meet the legal definition of an illegal gambling device, thus deeming them legal.
The ruling brought new hope to skill game manufacturers and proponents, while creating legislative confusion.
Pennsylvania Can’t Decide On Regulation
Pennsylvania is another state where skill machines have been a topic of discussion for years. In February 2023, a county judge ruled that Pace-O-Matic’s machines did not qualify as gambling devices. In December 2023, an appellate court upheld the decision.
However, those rulings did not clarify the games’ legal standing. That’s a decision for the Pennsylvania legislature.
While lawmakers have been unable to agree on whether to ban or regulate skill games for years, they’ve recently leaned towards the latter approach. However, disagreement remains on how to do that.
Earlier this year, multiple bills regulating skill games were introduced, each with different tax rates. One even proposed no tax on skill machines. None of the bills passed before the budget deadline in June, leaving the terminals in a gray area.
The Pennsylvania Supreme Court could finally provide that clarity. After initially declining to weigh in, the Court agreed in June 2024 to hear the state authorities’ request to appeal the appellate Court’s decision from the previous December. However, a year later, the Supreme Court has yet to issue a decision.
