A story published in a newsletter titled The Redemption Report claims that CEC Entertainment Inc., Chuck E. Cheese's parent company, has agreed to help lawmakers in California add a $10 prize limit to the state's amusement industry regulations. The limit would be directed specifically at redemption operations such as Chuck E. Cheese's restaurants.

The effort comes after a lawsuit in 2010 that was brought forth by a mother who claimed the chain violated state and federal laws by encouraging gambling by children.

The mother's suit was dropped by a federal court, but later re-filed in state court.

TRR co-publisher Kevin Williams called the California prize limit "a potential nationwide industry disaster," because other states often follow California's lead on legislation.

According to the Vending Times, a few other states have similar regulations, including Ohio ($10 limit) and Illinois ($25 limit). Georgia recently adopted a $5 limit.

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