How did TouchPlay machines become so numerous, so fast in Iowa? Did the Iowa Lottery go out on its own, ignoring legislators and legislative intent, to create mini-casinos in convenience and grocery stores throughout the state? How did this happen? Those are frequently asked questions in my e-mail, regular mail, phone calls and on radio call-in shows.

Let me give you some background. In 2002, the Lottery was told in House File 2627 that it was the intent of the General Assembly that they should “investigate whether the deployment of vending machines with video screens would enhance the ability to perform statutory duties, and . . . if so, the lottery is authorized to establish a plan to implement the deployment of pull-tab vending machines with video monitors.” I, along with every other Democrat voted against that bill.

Then, in 2003, over the objection of every Democrat in the Iowa House of Representatives including myself, the Iowa Lottery went from a regular state agency to a newly created Iowa Lottery Authority. In that bill (Senate File 453), it declared the lottery games are an entrepreneurial enterprise, and that the state should create a public entity in the form of a nonprofit authority. This was called the Iowa Lottery Authority. The authority was given “comprehensive and extensive powers to operate a state lottery in an entrepreneurial and businesslike manner.”

The Lottery acted like a business and did what they were told: they began looking for new ways to raise money for the state. The mechanism they came up with was the TouchPlay monitor video. Every step of the way, the Lottery officials kept the legislators apprised of their steps, usually by appearing before the Oversight Committee. Minutes of those meetings are on the legislative web site for all to see.

The Iowa Lottery Authority did what the majority party told them to do: they behaved like a business and raised money for the state. They authorized the Lottery to deploy pull-tab vending machines with video monitors which developed into what we know now as TouchPlay machines. They became very successful. Iowans are now dropping one million dollars a week in the machines. The Lottery says about 65 cents on a dollar wagered in the TouchPlay machines goes back into prizes. Three groups — the machine maker, its owner and retailers — share the rest of the money. By comparison, the slot machines at Prairie Meadow’s offer an average payback of almost 94 cents for every dollar wagered, state records show.

I have consistently voted against gambling in my tenure in the Iowa Legislature. So, once again, I plan to vote to ban the TouchPlay machines when the bill comes to the floor of the House for debate this week. I feel some ambivalence about this vote, because I know that there are businesses in my district that will lose revenue, but I have to be consistent with my essential belief that gambling is not a good way for the state to raise money. If the ban fails to obtain a majority vote, I will then vote for a compromise of no new or additional machines being placed in our communities. This compromise will allow businesses to recoup their investment in the TouchPlay machines.

It will be good to address this issue and then move on to other pressing concerns. In the next few weeks, we will be debating and voting on hundreds of bills on a variety of subjects that impact the lives of the majority of Iowans. We have yet to debate the Health and Human Services budget bill or the Education budget bill. Those two bills represent about 80% of the state budget and require our full attention. These are bills that are crucial to the lives of so many Iowans.

Hopefully, we will be able to refocus on moving the state in a positive direction. I can think of very little that is positive about gambling. I wholeheartedly agree with the person who wrote “the revenue generated from gambling is not worth the burden and social expense that it creates.”

You can write me at the State Capitol, Des Moines, IA 50319; call me at 515/281-7328 or e-mail me at ro.foege@legis.state.ia.us.

Ro

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