Who We Are

What We Do

Resources

Geoff Greenwood, Communications Director
515-281-6699, geoff.greenwood@iowa.gov
FOR IMMEDIATE RELEASE, July 6, 2010

Final Claim Approval Ends TouchPlay Litigation, Settlements

(DES MOINES, Iowa) The State Appeal Board’s approval Tuesday of a $150,000 claim against the Iowa Lottery Authority and The State of Iowa concludes four years of extensive litigation, resulting in substantial savings over the state’s initial potential liability over TouchPlay.

The Appeal Board, which has authority to approve or reject claims against the state, approved a $150,000 settlement in the Red Line Vending, Inc.; Lottery Service Corporation of Iowa, Inc.; William R. Wohlers; and Thomas C. Wohlers vs. The Iowa Lottery Authority and the State of Iowa. The case, which was filed in Floyd County District Court in May of 2008 (LACV029076), alleged damages stemming from the state’s ban of the TouchPlay program. The State has denied any wrongdoing, and the settlement acknowledges the denial of liability.

Dozens of plaintiffs asserted approximately $900 million dollars in TouchPlay-related claims against the State of Iowa, following the state’s decision in 2006 to prohibit TouchPlay gambling machines after initially approving them. Attorney General Tom Miller and his staff worked extensively to research, litigate and settle the claims for $18.4 million, which is less than the state collected in revenue from TouchPlay vendors.

“The TouchPlay settlements saved the state from potential economic catastrophe,” said Iowa Attorney General Tom Miller. “We treated TouchPlay vendors fairly, acknowledging their substantial losses. At the same time we put in a tremendous amount of effort to minimize the financial damage to the state.”

# # #