YOUR BUSINESS AUTHORITY
Springfield, MO
Efforts to rid the city of cash-prize gaming machines persist in the city of Springfield, but so do the machines that are their focus.
In June, the city denied requests for renewals of business and liquor licenses for businesses that host the machines, and appeals have been entered for all denials, according to a city spokesperson.
The most vocal opponent of the city’s ordinance against the machines is also the company with the most gaming machine locations. Rapid Robert’s Inc. has machines in 12 of its Springfield stores.
The company filed a lawsuit on Jan. 22 in Greene County Circuit Court. The suit states that the city unlawfully denied its business and liquor licenses because its stores continue to offer video amusement machines offering monetary prizes, in opposition to a city ordinance.
The suit alleges the edicts on the business and liquor licenses, handed down by Springfield Finance Director David Holtmann, were unlawful because compliance with the gaming device mandate is not a qualification required for renewal of a business or liquor license.
Asked by email if the lawsuit had paused the city’s enforcement efforts, Cora Scott, the city’s director of public information and civic engagement, replied, “No, it has not caused a pause in enforcement efforts.”
The city denied renewal of business licenses for 38 businesses that host the devices, which manufacturer Torch Electronics Inc. insists are not properly referred to as gambling machines. Rapid Robert’s was denied licenses for 12 locations, though a 13th store, located at 945 S. Campbell Ave., removed its gaming machines and its license was subsequently renewed, according to past Springfield Business Journal reporting.
An additional 12 liquor licenses have also been denied for alleged offenders.
Scott said all license denials have been appealed, with the effort coordinated by Torch Electronics.
Asked by email why stores with expired licenses are still operating, Scott said simply, “Due process.”
Outside of Rapid Robert’s, the city’s withholding of business and liquor licenses has led some store management teams to assess their strategy.
A manager who answered the phone Jan. 29 at Wicked Superstore but did not provide his name said Wicked’s managers would be assembling for a meeting, perhaps that very day, to decide what to do. He noted, though, that the machines are a popular feature of the brightly lit 425 E. Kearney St. store, which is primarily a vape shop and is open 24 hours.
“We’re always busy,” the manager said. “People come from far and wide to enjoy the machines.”
Scott provided SBJ with a list of the 38 businesses whose license renewal requests were denied because of gaming machines on the premises:
• Diamond Smoke Shop, 1406 W. Sunshine St.
• Discount Express, 3450 W. Division St.
• Discount Smokes and Beer, 635 S. Kimbrough Ave.
• Eagle Stop, 820 E. Battlefield Road
• Eagle Stop, 2959 N. Grant Ave.
• Eagle Stop, 5384 S. Campbell Ave.
• Eagle Stop, 3459 W. Division St.
• Fast N Friendly, 2766 N. Kansas Expressway
• Fast N Friendly, 1451 N. Kansas Expressway
• Fast N Friendly, 427 S. Glenstone Ave.
• Fast N Friendly, 3249 E. Evans Road
• Fast N Friendly, 3015 S. Scenic Ave.
• Fast N Friendly, 501 W. Chestnut Expressway
• Fast N Friendly, 3109 W. Sunshine St.
• Fast N Friendly, 2341 W. Division St.
• Fast N Friendly, 2745 S. Kansas Expressway
• Joji Quick Stop, 2631 N. Glenstone Ave.
• Mustang Tobacco Shop, 1410 E. Kearney St.
• Rapid Robert’s, 3106 W. Battlefield Road
• Rapid Robert’s, 2208 S. Glenstone Ave.
• Rapid Robert’s, 945 S. Campbell Ave.
• Rapid Robert’s, 1402 E. Republic Road
• Rapid Robert’s, 320 W. Sunshine St.
• Rapid Robert’s, 3351 E. Sunshine St.
• Rapid Robert’s, 3165 N. Glenstone Ave.
• Rapid Robert’s, 1655 S. Kansas Expressway
• Rapid Robert’s, 1357 S. Glenstone Ave.
• Rapid Robert’s, 3317 E. Kearney St.
• Rapid Robert’s, 3405 S. Campbell Ave.
• Rapid Robert’s, 1211 E. Grand St.
• W. F. Cody’s, 3136 E. Sunshine St. (restaurant business license)
• W. F. Cody’s, 3136 E. Sunshine St. (billiard parlor business license)
• White Oak Station, 1472 E. Kearney St.
• White Oak Station, 310 S. Scenic Ave.
• White Oak Station, 2506 W. College Road
• White Oak Station, 2953 N. National Ave.
• White Oak Station, 1550 N. Glenstone Ave.
• Wicked Superstore, 425 E. Kearney St.
The city told SBJ on Jan. 24 it had also denied liquor license renewals to 12 businesses – all Rapid Robert’s locations listed above except for the location at 945 S. Campbell Ave. and Git-N-Go, 3030 S. Jefferson Ave.
That number is higher at press time on Jan. 30, with 34 liquor license renewals now denied, according to Scott. Names of additional businesses were not available by press time.
City officials said as of Jan. 24, police officers had written 220 citations from the time the ordinance banning the machines went into effect in February 2024. They added that 190 prosecutions are pending, with the first scheduled for trial in March. The city has also seized 24 machines owned by Torch Electronics LLC. Machines remain in operation at locations throughout the city, generally with more than one per location.
The number of citations might be expected to be far higher under the ordinance, which allows the presence of each individual machine on a violator’s premises to constitute a separate offense, and which also allows multiple violations to accrue for each device, according to past SBJ reporting.
The ordinance states for a first offense, a violator will be subject to a minimum fine of $500. For a second offense, the fine will be $1,000, and for a third offense, there will be a $1,000 fine plus a minimum jail sentence of 30 days. The court would not have the ability to suspend the minimum sentences, the ordinance states.
With the ordinance in effect for just under a year and with the potential for daily violations for each machine on a violator’s premises, it is unclear why so many machines remain in operation within the city.
Both Police Chief Paul Williams and City Attorney Jordan Paul denied requests for an interview and did not respond to an emailed question about the machines’ continuing operation. Scott said they did not have additional information, as this is pending litigation.
The machines in question resemble poker or slot machines and are often referred to as “no chance” or “skill gaming” machines because the outcome of the next spin is revealed, thus removing the element of luck, according to the Missouri Gaming Commission and gaming publication Casino.org. Players bet on a play to advance the machine to its next pre-reveal option, and they can do so repeatedly.
The Missouri Gaming Commission, which supports enforcement efforts, called the devices illegal slot machines in a February 2024 email to SBJ.
Torch Electronics challenged prosecution of its gaming devices in a lawsuit it filed against the Missouri State Highway Patrol in 2022, according to reporting in the Missouri Independent.
The Western District Court of Appeals ruled against Torch Electronics, which had sought an order to enjoin law enforcement from seizing machines. It ruled that civil courts cannot be used to interfere with criminal proceedings.
In remarks on behalf of a three-judge panel, Judge Edward Adrini writing, “It is evident from plaintiff’s amended petition that their objection in bringing the lawsuit is to enjoin law enforcement from determining the devices are criminal and seizing them.”
Springfield’s ordinance enforcement efforts are yet to be tested in courts. In the Jan. 22 lawsuit, Rapid Robert’s is represented by Charles W. Hatfield, a partner with Stinson LLP who represented Torch Electronics in the Western District Court of Appeals case.
As past reporting noted, officials with Rapid Robert’s indicate in the suit that neither the company nor its employees have been found guilty in Springfield Municipal Court for violations of the gaming device ordinance.
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