DES MOINES, Iowa -- Governor Tom Vilsack on Monday signed into law a ban on the Iowa Lottery's TouchPlay machines, giving businesses 45 days to take the slot machine lookalikes out, reported the Sioux City Journal.
Legislative leaders and lawyers worked to find ways to mitigate damages for businesses and head off a potential lawsuit from TouchPlay investors, said the report.
Figures released Monday by the Iowa Lottery showed the machines took in $242.6 million in a nine-month period from July through March 11.
Iowa House Speaker Christopher Rants (R), who has been a TouchPlay opponent, said discussions will continue on how to cut losses for businesses. Rants said leaders have asked the Iowa Attorney General's Office to meet with TouchPlay investors to see if they can find a resolution before the dispute ends up in court. "Whether or not anything comes of that, I don't know, but I told those folks that I'm willing to sit down and continue to talk with them," he said.
Both the state House and Senate voted overwhelmingly last week to ban the TouchPlay machines, which have been installed in more than 2,800 businesses across the state.
The machines were developed by the Iowa Lottery and earned approval by the state legislature, although lawmakers said later they had not realized the extent of the TouchPlay program at the outset.
Iowa Attorney General Tom Miller told reporters the legislature had the legal authority to impose the TouchPlay ban, but would not predict whether a judge would agree. "We know what the court should do, at least in our own mind, but we can't guarantee what a court will do," he said.
Business people who have invested in TouchPlay machines were at the Capitol Monday armed with financial documents they say show they're set to lose millions of dollars after being invited invest by the Iowa Lottery.
A delay in banning the machines until September 1 has passed the Iowa House and has yet to be considered in the state Senate, said the report. Vilsack said in a written statement he would support extending that deadline, as well as a measure that would let TouchPlay businesses keep revenue to mitigate damages.
Senate Co-President Jeff Lamberti (R), whose family owns the Casey's General Stores chain, said lawmakers remain strong in their opposition to TouchPlay and do not want to do anything until they can see details of the TouchPlay business contracts. "There's a lot of speculation out there about potential losses. But personally, I also know there's a lot of profits that have been out there, so we can't make an informed decision on whether we want to do anything until we see those actual numbers," he said.
Lawmakers are asking Miller to review those financial records, which they want businesses to provide voluntarily, according to the report. "We want just a better and a more accurate picture," Miller said, "so that we can consider what if any recommendations we would make to the legislature, and what they might do to deal with this issue in a fair way and to ameliorate some of the losses if that is possible."
State Senator Mary Lundby (R) said she does not buy the argument that the ban will bankrupt businesses. "From the legislative perspective, when anyone doesn't like what we do, we always hear that it's the end of the world," she said.
She said the Iowa Lottery went out as an independent agency and entered into the TouchPlay contracts, not the legislature. "The legislature always responds to constituents, and the constituent response to the TouchPlays in every corner of Iowa, every grocery store, many, many restaurantsthe constituents said no, no and no again," she said.
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