Iowa Lottery: Iowa Lottery adds machines resembling slot machines at taverns
The Iowa Lottery will begin distributing 4,000 video pull-tab machines which resemble slot machines to taverns and fraternal clubs in the next few weeks.
Iowa Lottery Chief Executive Edward Stanek said Monday the machines are projected to help the lottery make an additional $20 million in annual profit.
The new machines will charge $1 per play. The top prize is $300.
Players insert money into the equipment as with any other vending machine. After the ticket is dispensed, the video monitor displays results to show whether the ticket is a winner. The machines don't accept credits, and payouts are made by a bartender or a cashier.
More than 100 applications have already been received from businesses and nonprofit clubs that want to offer the video pull-tab equipment to their customers
Most establishments, such as taverns, will be limited to two machines, while fraternal or charitable social clubs can have up to four machines at each site. More than 40 amusement companies have been certified to install video pull-tab machines.
"My personal feeling is that these will be very successful . . . and that they will be successful beyond our expectations," said Tim Clausen, an Iowa Lottery Board member from Sioux City.
The Iowa Lottery began working on the video pull-tab project more than two years ago, and the Legislature has given its approval. Critics complain the lottery machines have features that resemble slot machines, including shiny chrome exteriors with attractive video graphics and cheery electronic music. But the Iowa attorney general's office has ruled they are not slot machines, which are permitted only in casinos.
The state's share of the profit will begin at 36 percent for the first year for machines averaging $801 or more weekly, and 28 percent for machines averaging $800 or less during the first year. The state's share will rise to 40 percent by the fifth year.