Major GOP Contributor Withdraws Support over Call to Remove Slot-Like Machines in Iowa
According to a recent report, Bill Krause, one of the Republican Party's biggest activists and most generous donors, has withdrawn his support over Republican Gubernatorial candidate Jim Nussle's call to remove the controversial TouchPlay lottery machines from Iowa's businesses. This move is the first political repercussion resulting from the issue involving the machines, which closely resemble slot machines operated in casinos.
Krause's family owns and operates the Kum & Go convenience store chain. According to financial disclosure records, Krause and his son Kyle, who holds the position of CEO in the company, contributed over $25,000 to Nussle's gubernatorial campaign in 2005. The Kum and Go stores have purchased many TouchPlay machines and Krause has also founded a company called Royal Financial, which distributes the slot-like machines to gas stations and other convenience stores.
However, Nussle issued a statement saying that campaign contributions have never had influence on his principals. He refuses to change his position on further installation of the Touchplay machines in Iowa, even though he is aware of the fact that it is likely to cost the state $45 million in 2007. He was also reported as saying that he does not believe that video slot machines are the solution to Iowa's entrepreneurial future.