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Lawmakers Eye TouchPlay to Ease Budget Crisis
By Dave Franzman, Reporter
By
Becky Ogann
Story Created:
Oct 23, 2009 at 4:35 PM CST
Story Updated:
Oct 23, 2009 at 5:24 PM CST
CEDAR RAPIDS - Iowa's budget crisis could force a conversation about bringing up the banned TouchPlay machines.
Sate lawmakers pulled the plug on approximately 6,700 TouchPlay video gaming machines three years ago. Before the ban, you could find the casino-like machines in bars, convenience stores and even grocery stores.
When reporters surveyed legislative leaders several agreed the issue will come up in the next session. And lawmakers say with the huge loss in state revenue, enough "no" votes to TouchPlay might have switched to "yes" to bring it back.
If TouchPlay machines become legal again, Larry Welp would certainly find the space. The owner of Jim's Food had four in his grocery store and four next door at a laundromat.
His grocery store ranked as high as 2nd statewide in TouchPlay sales and those machines definitely earned their keep.
"We were making five percent, which is not much, five cents out of a dollar, but there were so many dollars going through it generated quite a bit of profit, " said Larry Welp, former TouchPlay retailer.
But if TouchPlay becomes legal again, it might operate with many more restrictions. Top lawmakers say revised rules might prohibit video gaming machines in convenience or grocery stores but allow them in bars or other "over-21" establishments.
That would help the owner of the Double Inn.
"It helped the state, it helped the bars, it helped my amusement company, it would put a lot of people back to work," Mike Cornwell, former TouchPlay retailer.
In 2006, the best year, TouchPlay brought in $80-million for the state. Some operators say enough machines in enough places might do even better now.
One Republican leader expects to see a bill this session but isn't sure it will get enough support to bring video gaming back.
"The governor, democrat majority is looking all over the place to raise revenue and still say they're not raising taxes. Maybe this meets that criteria for them... I don't know," said Rep. Kraig Paulsen, (R) House Minority.
The ban on TouchPlay in 2006 sparked a number of lawsuits from owners of the expensive video machines. Those suits took years to settle.
Amusement company owners say if video gaming returns, they'd insist on ironclad contracts with the state before investing more money.
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