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Chuck E. Cheese at Center of New Legislation

6 February 2002

JACKSON, Mississippi -- As reported by the Associated Press: ``Mississippi's amusement company owners are hoping to ride the broad coattails of the Chuck E. Cheese's pizza parlor/kids arcade chain to get relief from a state law that makes their gaming machines illegal.

``Legislation pending before the full state Senate -- and supported by Chuck E. Cheese's parent, CEC Entertainment of Dallas -- would make the kids' arcade games legal under Mississippi gambling law as long as the coupons dispensed can be redeemed for merchandise with a wholesale value of $40 or less.

``The Mississippi Gaming Commission's crackdown on gaming devices located away from licensed casinos had prompted state Supreme Court decisions that found such machines illegal under existing law. The machines have been found in truck stops, convenience stores and gas stations around Mississippi, says J.W. Ledbetter, chief of enforcement for the commission.

``...Ledbetter said the CEC machines are the typical children's games with the outcome decided by skill, not chance.

```CEC machines offer participation for a fixed price,' he said. `On the other hand, video poker and the video eight-liners found in truck stops and convenience stores will allow you to 'double down' or 'raise your bet' to increase the odds or the amount of the prize.'

``...At the restaurants, located in 45 states, children are given gold tokens to use in coin-operated rides and arcade games. Tickets are awarded based on how a child -- or adult -- fares at basketball shooting and other games.

```I don't think the Legislature or the public in general is looking to restrict the way we operate,' Rice (CEC Vice President) said. `I don't think anyone confuses what happens at Chuck E. Cheese's with video gambling.'

``...In Georgia, Missouri, Alabama, Texas, Arkansas and elsewhere, CEC has sought clarifications of state laws that address what is legal and illegal gambling.

``...Ledbetter said a recent raid in Indianola found machines "in a glass business that sold no glass, a produce stand that sold no produce and a travel agency that never booked a trip..."

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