The state of Iowa and the Iowa Lottery Authority have agreed to pay $1.67 million to Royal Financial LLC, a company that had operated one-fourth of the state’s TouchPlay machines before the Legislature banned the machines more than a year ago.

“We are pleased to resolve a major portion of the TouchPlay litigation with the Royal Financial settlement,” Attorney General Tom Miller said in a release, calling the settlement “good, fair and reasonable.”



The state has denied any wrongdoing and the settlement agreement acknowledges the state’s denial of liability. Royal Financial will dismiss its lawsuit and will continue to cooperate with the state in making available documents and information sought by the state relating to the other TouchPlay litigation, Miller’s office said.



The suit was one of five cases pending against the state by TouchPlay operators claiming economic damages from the prohibition of the gambling machines.



“The state will continue discussions with any other interested TouchPlay litigants, and the state intends to treat those plaintiffs in a similar fashion,” Miller said in the release.