State settles TouchPlay lawsuit with Omaha company

By The Associated Press | Monday, May 05, 2008

DES MOINES, Iowa — The state has reached a settlement with an Omaha, Neb., company which manufactured TouchPlay machines that were banned in Iowa.

Under the settlement, the state will pay International Gamco Inc. $250,000 and return two of the machines that had been used by the Iowa Lottery for testing.

The Iowa attorney general’s office says the company must acknowledge that the state denies any liability. Gamco is also required to dismiss its portion of a lawsuit against the state.

Trial in that case, which includes dozens of plaintiffs, is scheduled for Sept. 8.

In a news release, the attorney general’s office calls it a fair and reasonable settlement.

The Legislature ended the TouchPlay game in May 2006 after widespread public criticism about the machines, which resembled slot machines.