Tennessee court rules video lottery terminals illegal, prompting immediate crackdown
A Tennessee court has ruled that video lottery terminals, often referred to as “no chance” machines, are illegal under state law, a decision that will trigger immediate enforcement actions, including seizures and potential prosecutions, Shelby County District Attorney Steve Mulroy announced on July 16.
The three-judge panel of the Chancery Court unanimously upheld the constitutionality of Tennessee’s gambling statute on July 14, siding with the D.A.’s office in a legal challenge brought by Torch Electronics, a Missouri-based manufacturer of the machines. The court found the terminals violate state law and may be seized without delay.
“The court made it clear: these machines are illegal, and we have the authority to go after those who profit from them,” Mulroy said in a statement.
The decision seemingly ends a long-standing legal gray area surrounding the machines, which resemble slot machines but use preset outcomes rather than random number generation. They are frequently found in gas stations and convenience stores across Tennessee, especially in Shelby County.
Torch Electronics had filed suit in July 2024, arguing that the state’s gambling laws were unconstitutionally vague and that its machines were not games of chance. The court rejected the company’s claims, affirming the state’s ability to regulate and prohibit such devices.
“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,” Mulroy said. “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."
Past initiatives have included Operation Casino Royale (2022–2023), which resulted in the seizure of 268 illegal gambling machines, and five enforcement raids in July 2024.
Mulroy acknowledged some business owners may have believed the machines were legal, citing confusion around their classification. “We still have many of these machines in Shelby County, amid some uncertainty or at least claimed uncertainty as to its exact legal status,” he said.
Despite the ruling, the plaintiffs may still appeal the decision, but Mulroy said he is “fairly confident” in the legal standing of the statute following the court’s unanimous opinion.
“It is possible reasonable people can disagree on the policy behind this - some state legislators decided to legalize gambling... But we don’t have that situation in Tennessee. The legislature has not made that decision,” he added.
https://www.yogonet.com/international/news/2025/07/17/111785-tennessee-court-rules-video-lottery-terminals-illegal-prompting-immediate-crackdown