Big GOP donor breaks with Nussle on video lottery
Posted: Tuesday, January 31, 2006
BC-IA--Nussle-Lottery,590
AP Exclusive: Big GOP donor breaks with Nussle on video lottery
AP Photo
By MIKE GLOVER
AP Political Writer
DES MOINES, Iowa (AP) -- Underscoring the high-stakes debate over expansion of Iowa's TouchPlay video lottery game, a key Republican activist and fundraiser has broken with Rep. Jim Nussle, R-Iowa, over the issue.
"Jim, you have destroyed our confidence in you as a candidate for governor," Des Moines businessman William Krause wrote in a Jan. 17 e-mail to Nussle, a copy of which was obtained by The Associated Press. "Please take all the Krauses and our employees off any mailings."
Krause owns the Kum and Go convenience store chain, and is a major bankroller of Republican campaigns.
Disclosure records show he gave $19,045 to Nussle's campaign for the GOP gubernatorial nomination in 2005, and son, Kyle, gave another $6,250. His communication made it clear that's over.
In his e-mail to Nussle, Krause upbraids the gubernatorial candidate for "your against stand on TouchPlay."
"Why are you involved if your platform is economic development for the entire state of Iowa?" Krause asked. "You and I discussed this business in my office."
About 5,000 TouchPlay lottery machines have been installed in more than 2,600 bars, convenience stories and groceries across Iowa.
Critics say the machines look just like slot machines and represent a big expansion of gambling.
Supporters, including Krause, say the machines offer businesses throughout the state a chance to improve the bottom line.
Krause has a big stake in the issue. Kum and Go stores have been aggressive in installing the machines and Krause also has formed a company called Royal Financial, which markets the machines to gas stations and other convenience stores.
Krause was out of the state on Monday. Randy Meyer, a spokesman for Krause and Royal Financial, said Krause had spoken with Nussle about the issue and was upset with his stance.
"I think Jim has probably communicated with Bill in the past on a number of issues," Meyer said.
Nussle issued a statement saying, "I respect Bill Krause as an entrepreneur and as an Iowan," but sticking with his call to pull all of the machines.
"I want to make it very clear that I believe that video slot machines are not the answer to Iowa's entrepreneurial future," Nussle said.
Earlier this month, Nussle said all TouchPlay lottery machines should be jerked out of the retail outlets before the state becomes hooked in the profits, estimated at $45 million this year.
"My position on this issue and all others are based on principle and what I believe to be in the best interest of the people of Iowa," said Nussle. "Campaign contributions have never had any influence on my principles and my positions and never will."
The fight underscores the political consequences of the debate.
While many, including some gambling backers, are leery of the TouchPlay expansion, a very well financed group of business leaders have formed the Iowa TouchPlay Coalition to push for the machines.
They argue the state could be liable for as much as $200 million because businesses already have signed contracts to install another 5,000 machines, in addition to the $45 million the state would lose in potential profits.
Krause said in his e-mail that he remains mystified as to why Nussle chose to weigh in on the issue.
"The question that will forever beg Kyle and I ... why?" said Krause.
Editors: Mike Glover has covered politics since 1982, when he began covering the Iowa Statehouse.
AP-CS-01-30-06 1504EST
AP Exclusive: Big GOP donor breaks with Nussle on video lottery
AP Photo
By MIKE GLOVER
AP Political Writer
DES MOINES, Iowa (AP) -- Underscoring the high-stakes debate over expansion of Iowa's TouchPlay video lottery game, a key Republican activist and fundraiser has broken with Rep. Jim Nussle, R-Iowa, over the issue.
"Jim, you have destroyed our confidence in you as a candidate for governor," Des Moines businessman William Krause wrote in a Jan. 17 e-mail to Nussle, a copy of which was obtained by The Associated Press. "Please take all the Krauses and our employees off any mailings."
Krause owns the Kum and Go convenience store chain, and is a major bankroller of Republican campaigns.
Disclosure records show he gave $19,045 to Nussle's campaign for the GOP gubernatorial nomination in 2005, and son, Kyle, gave another $6,250. His communication made it clear that's over.
In his e-mail to Nussle, Krause upbraids the gubernatorial candidate for "your against stand on TouchPlay."
"Why are you involved if your platform is economic development for the entire state of Iowa?" Krause asked. "You and I discussed this business in my office."
About 5,000 TouchPlay lottery machines have been installed in more than 2,600 bars, convenience stories and groceries across Iowa.
Critics say the machines look just like slot machines and represent a big expansion of gambling.
Supporters, including Krause, say the machines offer businesses throughout the state a chance to improve the bottom line.
Krause has a big stake in the issue. Kum and Go stores have been aggressive in installing the machines and Krause also has formed a company called Royal Financial, which markets the machines to gas stations and other convenience stores.
Krause was out of the state on Monday. Randy Meyer, a spokesman for Krause and Royal Financial, said Krause had spoken with Nussle about the issue and was upset with his stance.
"I think Jim has probably communicated with Bill in the past on a number of issues," Meyer said.
Nussle issued a statement saying, "I respect Bill Krause as an entrepreneur and as an Iowan," but sticking with his call to pull all of the machines.
"I want to make it very clear that I believe that video slot machines are not the answer to Iowa's entrepreneurial future," Nussle said.
Earlier this month, Nussle said all TouchPlay lottery machines should be jerked out of the retail outlets before the state becomes hooked in the profits, estimated at $45 million this year.
"My position on this issue and all others are based on principle and what I believe to be in the best interest of the people of Iowa," said Nussle. "Campaign contributions have never had any influence on my principles and my positions and never will."
The fight underscores the political consequences of the debate.
While many, including some gambling backers, are leery of the TouchPlay expansion, a very well financed group of business leaders have formed the Iowa TouchPlay Coalition to push for the machines.
They argue the state could be liable for as much as $200 million because businesses already have signed contracts to install another 5,000 machines, in addition to the $45 million the state would lose in potential profits.
Krause said in his e-mail that he remains mystified as to why Nussle chose to weigh in on the issue.
"The question that will forever beg Kyle and I ... why?" said Krause.
Editors: Mike Glover has covered politics since 1982, when he began covering the Iowa Statehouse.
AP-CS-01-30-06 1504EST
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