DES MOINES – Gov. Tom Vilsack on Monday signed into law a measure banning the Iowa Lottery’s TouchPlays, giving businesses 45 days to shut down the machines that Legislature approved in 2002.

“I look forward to closing this chapter in our legislative session and working with lawmakers on the work Iowans elected us to do,” said Vilsack, who approved the ban after returning from a trade mission in India.

Key lawmakers are now trying to ease the financial pinch for thousands of businesses that invested in the machines. The House has passed a measure that would allow the machines to remain until Sept. 1, and Vilsack said he would sign that proposal if the Senate approves it.

The Senate has not set a date to consider the bill.

“While there may not be a legal liability, we think there is some ethical responsibility on the part of the state to do some things to mitigate the damages,” said Senate Democratic Leader Michael Gronstal, of Council Bluffs.

Many lawmakers said they were misled when they approved the TouchPlays. They say they didn’t know the machines would be identical to slot machines – which are only allowed in casinos under state law – and didn’t expect so many.

Roughly 6,000 TouchPlays have been installed in more than 2,000 convenience stores, grocery stores and taverns across Iowa, with another 4,000 machines on order.

The businesses that install and distribute the machines have formed the TouchPlay Coalition, which has threatened a lawsuit against the state. The coalition alleges that the state is liable for the millions of dollars that businesses invested into TouchPlays after lawmakers approved them.

Attorney General Tom Miller will negotiate with representatives of the businesses to avoid the lawsuit and assess how much money businesses expect to lose. He is expected to give a report to lawmakers by the end of next week.

Coalition spokesman Mike Triplett said the ban could cost businesses $500 million, and there’s pressure to recoup that loss.