The Oregon Lottery announced Tuesday that a new owner will take over the 26 Dotty's Deli stores in Oregon and continue to offer lottery services.

Dotty's specializes in small storefront operations dominated by lottery-owned machines featuring video poker games. The chain is one of Oregon's largest video gambling retailers.

The company had run into trouble when the lottery director said the previous owner lied to gambling regulators. The state told them to sell out or lose its state lottery contract.

The new owners, a South Dakota-based company that runs lottery services in its home state, took possession of the stores Sunday. They've reached a temporary contract with the lottery to continue operations without disruption to the stores.