Task force recommends TouchPlay restrictions

Associated Press

DES MOINES – A task force studying the Iowa Lottery’s TouchPlay video machines issued its final report Wednesday, recommending that access to the machines be restricted.

The task force, appointed by Gov. Tom Vilsack, said the machines should be banned from businesses that don’t offer age-sensitive products, and that a barrier of at least 42 inches high should be built around machines in other locations.

The task force also said ATM machines should be moved away from TouchPlay machines and that fines should be imposed against businesses that allow children to play the machines. It also said warning signs addressing compulsive gambling should be posted nearby.

The Legislature approved the machines in 2002 but many lawmakers have said they were stunned by the quick expansion of TouchPlay. More than 5,000 of the machines have been installed in convenience stores, taverns and grocery stores around the state, with another 4,000 on order.

Lawmakers have focused on TouchPlay this session after critics complained the machines amounted to the spread of gambling statewide. Much of the criticism has come from casino operators worried about competition from the machines, which look like slot machines.

Rep. Jeff Elgin, R-Cedar Rapids, said a debate is planned quickly because of the potential affect on the state’s budget.

“Leadership would like to have that issue resolved quickly so we can move on with the appropriations process,” he said.

“Obviously that has an affect on our revenues.”

Vilsack said he would support the task force’s recommendations. He has asked for a moratorium on new TouchPlay machines until lawmakers can act.

He said Wednesday that the Legislature should thoroughly debate the issue and enact legislation based on sound policy, not politics.

“There are many options on the table and if the Legislature does decide to allow continuation of [TouchPlay] machines it is my hope that they heed these recommendations,” Vilsack said.

The task force did not consider whether the number of machines should be limited, banned or whether local voters should have a voice in where the machines are installed.

Montezuma lawyer Michael Mahaffey, the task force’s chairman, said the panel deliberately didn’t address those issues.

“We didn’t address that question because we didn’t think it was something the governor asked us to address,” he said. “That will have to be addressed by the Legislature. The Legislature is going to do what it wants to do anyway.”

Some lawmakers, including House Speaker Chris Rants, R-Sioux City, have called for a ban on the machines. Committees in the House and Senate have approved such a ban. Rep. Brian Quirk, D-New Hampton, who has been involved in legislative negotiations over TouchPlay, wouldn’t rule out a ban on the machines.

Rants said he has scheduled debate for Tuesday.

“The very first vote will be on whether or not you have a complete ban,” he said. “I hope that amendment passes. If the ban doesn’t take place, then you get into all the questions about regulating them.”

Rants said he was disappointed the task force didn’t address whether the machines should be banned.

“I think they wasted a lot of time to not deal with those issues,” he said.

Some lawmakers have expressed concern about the financial implications of a ban.

The machines are expected to bring up to $40 million to the state this year, with revenues growing to about $70 million annually. Then there are the businesses that have invested to either buy or lease the machines.

Some lawmakers and industry officials say the state could face a liability of up to $200 million if TouchPlay machines are banned.