DES MOINES --A group of 30 investors who say they were blindsided when the state reneged on the TouchPlay video lottery program slapped the state and the Iowa Lottery with a lawsuit Monday, alleging a breach of contract.

The companies argue they will rack up $900 million in losses after state lawmakers and Gov. Tom Vilsack approved a ban on the TouchPlay machines, which had been developed as part of a state revenue boosting plan by the Iowa Lottery.

Some of the affected businesses held a news conference on the courthouse lawn Monday afternoon after filing their amended lawsuit in Polk County District Court.

They argue the state-controlled Iowa Lottery sold them on the idea of TouchPlay. Many took out loans to buy the machines, expecting to make their money back in five years.

Joleen Hedley, president of Rich and Junnie's Coin of Dubuque, said the lawsuit was an attempt to hold the state accountable for a broken promise.

Hedley's company spent $1.5 million on 203 TouchPlay machines. They still owe $1.1 million on machines that are sitting in a warehouse and worthless.

"In Iowa, we talk about values and being trustworthy. This lawsuit is all about how Iowa leaders betrayed our trust and in the end, dismissed us with a total lack of respect," Hedley said.

Vilsack, who was named as one of the defendants, had little reaction to the lawsuit being filed.

"Certainly there's nothing prohibiting or preventing the owners from taking that step," Vilsack said.

State lawmakers stepped in to stop the program earlier this year when they saw TouchPlay machines popping up by the thousands across the state in bars, convenience stores, grocery stores and other retail outets.

The TouchPlay ban went into effect on May 3 after legislators voted overwhelmingly to shut down the video lottery devices.

Senate Co-President Jeff Lamberti, R-Ankeny, said the lawsuit will not convince lawmakers to revisit the issue.

"We understood this was a difficult decision to make, but we believe that the majority, the vast majority of Iowans, did not want gambling on every street corner," he said.

Lamberti argued the Iowa Legislature did not entice people to get into the lottery's program or enter into contracts.

"It is the Legislature that is the body determining if we have gambling, and if we do, where it's at, and how it's regulated," Lamberti said.

Five of the companies that are listed as plaintiffs were unsuccessful earlier this year in an attempt to get a court injunction to keep the ban on TouchPlay machines from going into effect. Those companies were part of the larger the lawsuit filed Monday as well.

Contact Charlotte Eby at (515) 243-0138 or chareby@aol.com.