Slots Line News - January 27, 2006

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Iowa Task Force Sets Dates and Deadlines 

Iowa Governor Tom Vilsack’s task force outlined its study plan today with regards to the Iowa Lottery’s TouchPlay machines.  The task force is determined to have enough information to make recommendations to the state legislature by no later than March 9th

The ongoing debate over the TouchPlay machines is that their design too closely resembles a casino slot machine.  Slot machines, in the state of Iowa, are only legal within the doors of a casino.  The task force will consider whether such accusations are true or whether the machine are, as advertised, just another Iowa Lottery product. 

The six member panel will also look at whether the TouchPlay machines are properly equipped with safe guards against play by gambling addicts, minors, or the intoxicated.  Should the task force discover the safeguards to be lacking, they will make suggestions on their improvement and modification.      

The last time an Iowa governor appointed a task force on the topic of gambling in Iowa was over a decade ago under Governor Terry Branstad.  The panel, assembled in 1993, unanimously voted down the presence of slot machines, video lottery machines, and off-track betting in neighborhood locations like convenience stores and taverns. On the other hand, that same panel suggested lawmakers allow racetracks to house slot machines and to do away with restrictions on low-stakes wagering aboard riverboat casino.  Iowa lawmakers accepted both recommendations and put them into affect. 

This newly appointed task force is chaired by Attorney Michael Mahaffey of Poweshiek County (R).  Mahaffey is also the former chairman of the Iowa Racing and Gaming Commission.  Mahaffey has pledged all discussions will be “fair, open, and honest.”

The other members of the task force include: Edward Stanek Iowa Lottery President; Mary Ellen Chaberlin, the Riverboat Development Authority President; Craig Cahoon of Moss Distributing, the company that distributes the TouchPlay; Jane Bell from the Ameristar Casino in Council Bluffs; and Kevin Techau, Iowa Public Saftey Commissioner.

During the investigation, the task force expects to process community input on the notorious TouchPlay machines.  Comments will come from the casino industry, which vilifies the machines as unfair competition, and local anti-gambling organizations.  The task force also expects to hear positive support for the TouchPlay from Iowa businesses that have already invested close to $100 million into the successful product.

TouchPlay machines are expected to number 10,500 in the next coming month.  Approximately 5,000 machines are already operating in 2,600 retail spots across the state.  5,500 more machines are shortly to be delivered.  The rapid sprawling of the machines is seen, in many circles, as a reflection of the growth of Iowa’s gambling industry.

The current meeting days set for the task force is February 10, 17, and 22.  Mahaffey is aware of the state Legislature’s intentions of holding TouchPlay hearings while the task force is holding their meetings.  "I am fully aware that the Legislature has a prerogative to do what it wants to do on this issue," said Mahaffey.

The Iowa attorney general’s office is advising the panel.  Historically, the attorney general’s office advised the state Lottery that gambling machines are not the same as slot machines.  They even backed up the opinion by pointing to a number of court rulings.   Regardless of past statements, the task force has indicated that the attorney general’s office will be reassessing all related issues.

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