Written By JR Robinson for the Shelby County District Attorney's Office

On Wednesday, July 16, 2025, Shelby County District Attorney Steven J. Mulroy, alongside representatives from the Memphis Police Department and other law enforcement partners, held a press conference to update the public on a significant legal victory in the ongoing fight against illegal gambling machines in the community. This development follows a crucial court ruling in the case of Torch Electronics v. DA Mulroy that affirmed the illegality of “No Chance Games” (NCGs) under Tennessee law and rejected claims that the state’s gambling statutes are vague or unconstitutional.

The Origin of the Issue: A Growing Concern over Illegal Gambling Machines

Illegal gambling machines have long been a source of concern for Shelby County residents and law enforcement officials. These devices, often disguised as video gaming machines, operate much like traditional slot machines. Players insert money, watch animated spins, and await a payout, with outcomes dependent on chance. Unlike fully legal gaming options controlled by state agencies, these unregulated machines generate substantial illicit revenue and foster environments adjacent to various criminal activities.

For years, the proliferation of these machines has contributed to an underground economy that drains financial resources from law-abiding citizens, propels crime in neighborhoods, and undermines the rule of law. Law enforcement agencies have repeatedly found that the locations harboring these machines often become hotspots for drug trafficking, money laundering, and related offenses, amplifying the harm well beyond gambling alone.

The Legal Battle: Torch Electronics v. DA Mulroy

The recent court ruling emerges from a challenge brought by Torch Electronics, a manufacturer and distributor of such gaming machines, against the Shelby County District Attorney’s Office. Torch Electronics contended that their machines were lawful under Tennessee law, arguing that these games were not games of chance but rather games of skill or amusement.

Specifically, the company pointed to features within the machines that purportedly eliminate randomness, such as the “preview” function that allegedly reveals upcoming outcomes, arguing this negated the element of chance typically present in gambling devices. Based on this premise, they sought to invalidate enforcement actions against their machines.

However, the Chancery Court rejected these arguments decisively. The ruling explicitly found that:

• These machines fall squarely under the definition of gambling devices as outlined in Tennessee law. A key statute defines gambling as risking something of value on an outcome influenced “in any manner” by chance.
• The presence of a “preview” feature does not transform these devices into games of skill or mere amusement, as the element of chance remains predominant. Even with previewing outcomes, players still cannot predict “how the things are going to flip,” preserving the randomized nature of the game.
• The state’s anti-gambling statutes are clear, constitutionally sound, and enforceable.

This ruling strengthens the legal foundation for ongoing and future efforts against illegal gambling machines across Tennessee and particularly in Shelby County.

What Do These Machines Look Like?

To the average person, the illegal gambling machines may appear indistinguishable from casino slot machines. They are boxed devices with screens that display spinning reels or other game elements. Players insert currency, often cash bills, then initiate a spin. Symbols or icons rotate on the screen, and winning combinations trigger payouts or redeemable credits.

These machines often feature colorful, themed games designed to entice users. Some devices can host multiple games on one machine, allowing players to choose from a variety of gaming experiences. Despite their appearance as “video games” or “amusement devices,” legal scrutiny reveals they function as gambling machines—devices where monetary stakes and chance outcomes combine to create unlawful gaming.

The Scope of the Problem in Shelby County

The stakes involved with illegal gambling machines go far beyond the casino-style entertainment they purport to offer. According to statements from DA Mulroy and law enforcement during the press conference, the problem is both widespread and significant in terms of financial impact.

• Large-Scale Illegal Revenues: Investigations and seizures conducted by task forces over the last year – notably operations involving the Memphis Police Department’s drug task force — uncovered that some locations with these machines were generating tens of thousands of dollars daily in illegal proceeds. This illicit cash flow not only harms legitimate businesses but also fuels other criminal enterprises.

• Links to Drug and Money Laundering Activity: These locations are often interconnected with drug trafficking rings and money laundering schemes. In some cases, law enforcement documented evidence that these illegal venues served as fronts for moving and concealing illicit drug money, exacerbating the local narcotics crisis.

• Increased Crime Rates in Areas Hosting Machines: Statistical data correlating crime rates with the prevalence of illegal gambling machines reveals troubling trends. Areas such as the UNO neighborhood and nearby commercial districts have experienced higher incidence rates of criminal activity, including violent crimes, theft, and narcotics offenses, in proximity to these gambling establishments. The machines act as magnets, attracting criminal elements and creating environments where illegal activities flourish.

• Community Concern and Quality of Life: Beyond the quantitative data, residents and business owners report heightened fears and frustrations about safety and neighborhood stability. Illegal gambling sites contribute to blight and degrade the quality of life—populations affected by these conditions often experience ongoing disruptions to peace and security.

Why Legal Clarity Matters

Prior to this ruling, ambiguity around what constituted illegal gambling devices complicated enforcement efforts. Operators of these machines exploited these legal gray areas to continue operations and challenge prosecution.

The court’s ruling brings much-needed clarity and legal certainty:

• It affirms the state’s authority to regulate and prohibit such devices.
• It provides law enforcement with a stronger legal basis to seize illegal machines.
• It limits the ability of manufacturers and distributors to contest enforcement actions by invoking technicalities related to device features or supposed games of skill.

Attorney General’s Office involvement and collaboration with the Shelby County DA’s Office ensured rigorous legal advocacy and helped secure this unanimous decision, reinforcing Tennessee’s commitment to enforcing gambling laws effectively.

The Shelby County District Attorney’s Commitment

This victory highlights the diligence, focus, and collaborative spirit of the Shelby County District Attorney’s Office in fighting crime not merely by chasing symptoms, but by attacking root causes.

Illegal gambling machines represent not only financial crime and regulatory violation but also a nexus for broader criminal activity that fuels violence, drug problems, and economic exploitation in the community.

District Attorney Mulroy commented during the press conference:

“We have seen the evidence – the machines attract certain elements, and when you have illegal gambling, it is often a hub for drug activity, money laundering, and higher rates of related crime. This court decision empowers us to act decisively and protect our neighborhoods.”

The DA’s office has worked closely with law enforcement partners including the Memphis Police Department, drug task forces, and regulatory agencies to identify, investigate, and dismantle illegal gambling operations throughout Shelby County.

The agency’s approach goes beyond legal wins: it embodies a comprehensive strategy to reduce the root causes of crime by severing the financial incentives and structures that enable criminal enterprises to thrive.

What Comes Next? Enforcement and Community Impact

While the ruling does not announce an amnesty period or delay in enforcement, it signifies a new chapter in Shelby County’s crackdown on illegal gambling machines. Law enforcement officials reserve the right to begin seizing these devices immediately, sending a clear message to operators that illegal gambling will no longer be tolerated.

Community members can expect:

• Increased enforcement operations aimed at locations suspected of harboring illegal machines.
• Continued coordination between DA’s Office, police, and regulatory bodies in surveillance, investigation, and seizure.
• Outreach efforts to educate the public on identifying illegal machines and reporting them through appropriate channels.
• Sustained pressure on manufacturers and distributors attempting to circumvent legal restrictions through litigation or manipulation.

The ruling in Torch Electronics v. DA Mulroy represents an important milestone in Shelby County’s fight against illegal gambling. By affirming that “No Chance Games” constitute illegal gambling devices, the court has reinforced Tennessee’s gambling laws and provided robust support for law enforcement.

For the community, this means safer neighborhoods and a reduction in the ancillary crimes that often accompany illegal gambling operations. For Shelby County’s law enforcement, it signifies a powerful legal tool in disrupting a criminal economy worth tens of thousands of dollars daily and undermining the financial backbone of other illicit activities.

Most importantly, this effort underscores the Shelby County District Attorney’s Office’s steadfast dedication to cutting the roots of crime at the source, protecting citizens’ quality of life, and upholding the rule of law with courage and clarity.

As DA Mulroy stated, this victory is not the end but a continuation of the journey to make Shelby County safer, more prosperous, and more just for all its residents.