Casinos Protest Higher Skill-Game Prizes

The restaurant and arcade chain Dave and Busters wants to expand into Iowa and its lobbyists are promoting legislation that would raise the limit on skill-game prizes from $100 to $950. Iowa casinos have proposed a $600 limit and expressed concern that the higher limits would spread to games at bars.

A bill was introduced in the Iowa legislature that would raise the limit on skill-game prizes at Chuck E. Cheese, Fun City and similar establishments. The measure would increase the prize value limit for non-cash prizes and coupons from $100 to $950 to attract the Dave and Busters restaurant and arcade chain that’s eyeing expanding into Iowa. Its stores in other states offer prizes like PlayStations and iPads.

Iowa casinos have floated a compromise prize limit of $600. Ameristar Casino lobbyist Susan Cameron Daemon said, “We’d like to keep it at a reasonable amount. I think $600 is an amount our client would be comfortable with.”

Iowa Gaming Association President Wes Ehrecke expressed concern that bars also could offer the higher prize limits. “There’s nothing in the code that precludes an amusement concession device being placed there and then being eligible for that $950 limit.” Amusement concessions under Iowa law are the skill-based games offered by Dave and Buster’s, Chuck-E-Cheese and others. They differ from the amusement devices found in bars which are subject to lower limits on prize values.

Supporters of the bill said the retail establishments and casinos serve different clientele. “They are two entirely different business operations,” said state Senator Dan Dawson. Lobbyist David Adelman noted, “The construction investment, the property taxes, the sales tax would benefit the state. States around the country have seen this as a no-brainer.”