Iowa introduced TouchPlay machines to the state lottery in a bid to make it more profitable. Legislators have now come to the conclusion that the move was too successful, both with the lottery playing public and with small businesses. There are over 6,250 machines in use in the state and another 4,600 on order, and Iowa would collect around US$45 million in revenue for the fiscal year. Now that Governor Tom Vilsack has agreed to sign into law a total ban on the TouchPlay machines, many businesses will feel the loss.

For some time it has been recognized that restrictions would be placed on the machines, but an outright ban was not expected. Businesses that have boosted profits by having one or two TouchPlay terminals are shocked that, having been given the right to operate, the state is now to implement a ban. The company that manufactures the machines has not ruled out a legal challenge. Whatever the outcome of that may be, once the Governor signs the bill the TouchPlay machines will have to be removed from businesses within 45 days.

An estimated US$130 million will have been invested in lottery TouchPlay machines by businesses, and there are some moves in the legislature to get them compensation, perhaps from the money already collected from the machines although this amounts to under US$25 million. Shares in Mutimedia Games, the machine manufacturer, have fallen. The casinos operating in Iowa can only be pleased that the proliferation of TouchPlay around the state will no longer pose a threat to their business. (E-03.16.06)

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