TouchPlay Litigation Ends

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ADDRESS REPLY TO:

1305 EAST WALNUT


THOMAS J. MILLER HOOVER BUILDING
DES MOINES, IOWA 50319
ATTORNEY GENERAL
Department of Justice TELEPHONE: 515/281-5164
www.IowaAttorneyGeneral.gov

CONTACT: Geoff Greenwood


Communications Director
515-281-6699
[email protected]

FOR IMMEDIATE RELEASE


July 6, 2010

Final Claim Approval Ends TouchPlay


Litigation, Settlements
(DES MOINES, Iowa) The State Appeal Board’s approval Tuesday of a $150,000 claim
against the Iowa Lottery Authority and The State of Iowa concludes four years of
extensive litigation, resulting in substantial savings over the state’s initial potential
liability over TouchPlay.

The Appeal Board, which has authority to approve or reject claims against the state,
approved a $150,000 settlement in the Red Line Vending, Inc.; Lottery Service
Corporation of Iowa, Inc.; William R. Wohlers; and Thomas C. Wohlers vs. The Iowa
Lottery Authority and the State of Iowa. The case, which was filed in Floyd County
District Court in May of 2008 (LACV029076), alleged damages stemming from the
state’s ban of the TouchPlay program. The State has denied any wrongdoing, and the
settlement acknowledges the denial of liability.

Dozens of plaintiffs asserted approximately $900 million dollars in TouchPlay-related


claims against the State of Iowa, following the state’s decision in 2006 to prohibit
TouchPlay gambling machines after initially approving them. Attorney General Tom
Miller and his staff worked extensively to research, litigate and settle the claims for $18.4
million, which is less than the state collected in revenue from TouchPlay vendors.

“The TouchPlay settlements saved the state from potential economic catastrophe,” said
Iowa Attorney General Tom Miller. “We treated TouchPlay vendors fairly,
acknowledging their substantial losses. At the same time we put in a tremendous amount
of effort to minimize the financial damage to the state.”

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