A West Des Moines company that was the first to invest in TouchPlay machines has filed a lawsuit against the Iowa Lottery and its director over the shutdown of the machines. Michael Dee represents the Royal Financial company founded by Kum-and-Go convenience store C-E-O William Krause. Dee says the company is suing because the TouchPlay shutdown in May did not allow Royal Financial to recover its investment in the machines.

Dee says they don’t know the exact amount of unrecouped costs and expenses, but says it would be in seven figures. Dee says depending on how the claims go out, the company is also asking for the money the state made on Royal Financial’s TouchPlay machines.

Over two dozen other TouchPlay owners have filed a joint suit saying the state broke a five-year contract that would allow them to recover their investment in TouchPlay. Dee says the Royal Financial suit is similar to the others in that regard. Dee says this suit though is a little different than the others because Royal had personal contact and individual meetings with the Iowa Lottery before it got involved in the program.

Dee says Royal Financial’s investment in the machines was critical to the program because the Iowa Lottery could not invest the money needed to buy the machines. He says they believe Royal Financial was the first company approached by the Lottery.

Dee says Lottery head Ed Stanek personally approached Bill Krause about being a leader in the TouchPlay program. Dee says it’ll likely be some time before the Royal Financial suit is heard.

Dee says they filed the suit and asked for a jury, and he says based on his experience in Polk County, it could be a year before the suit is heard. Thirty other owners of TouchPlay machines signed onto a joint lawsuit that was filed in Polk County two weeks ago.