Dave & Buster's says this state law is keeping the company out of Iowa

Dave & Buster's, the popular arcade and sports bar chain, wants to open its first Iowa location.

But the company says an Iowa law that limits the prizes that can be redeemed at arcades is keeping it out of the Hawkeye State.

"In order for them and their business model to work, the Iowa law needs to be changed," said David Adelman, a lobbyist representing the Dallas-based chain in the Iowa legislature.

Iowa law currently limits "amusement concession" prizes to $100 or less. That law regulates places like Chuck E. Cheese and Dave & Buster's, where customers can redeem tickets or tokens for prizes.

But Dave & Buster's stores offer some prizes like iPads or gaming consoles that far surpass that $100 limit. A new bill making its way through the legislature would lift the limit to $950. If it's approved, Adelman said it will effectively ensure "multiple" locations open up in Iowa in the coming months.

Attorneys for Dave & Buster's uncovered the provision after exploring several Iowa sites interested in hosting a new store.

"I think it’s probably something that no one’s ever really paid attention to," Adelman said of the law.

Company officials did not respond to the Des Moines Register's request for comment Thursday. Dave & Buster's operates more than 90 restaurants across the country, including locations in the Omaha and Kansas City areas.

Several Iowa casinos have objected to previous versions of the legislation. Currently, only Great River Entertainment is registered in opposition to the bill. Officials with that company, which operates a Southeast Iowa casino, could not be reached for comment.

Wes Ehrecke, president of the Iowa Gaming Association, said casinos don't view businesses like Dave & Buster's as direct competition

"And the fact that they’re trying to bring them into a couple places in Iowa, that’d be welcome," he said. "It's more about where else can these machine have this high of a level (of prize)."

The association is registered as undecided on the bill. Ehrecke said some member casinos are concerned that the state law change opens up the door for gaming machines with prizes worth up to $950 to go into other bars, gas stations or restaurants.

"There is nothing in the code that precludes that," he said. "So we just raised that question."

Iowa Rep. Peter Cownie said he sees the casino issue as "apples and oranges."

"There's just not a cash transaction at a Dave & Buster's," said Cownie, R-West Des Moines. "Adults and kids both go to these things and they have a ball. 32 other states already have this and I think it'd be a win-win for Iowa."

The bill has so far made its way through a House committee and is eligible for floor debate. A companion bill must also make it through a Senate committee for ultimate approval.

More: Cownie: Bill would allow bigger prizes at Iowa arcades

Cownie said he's optimistic that both chambers will ultimately approve the measure. He said the legislature must promote economic development and ushering in new businesses is one way to do that.

"And we don’t have to put anything in for this. All they want to do is come here," he said. "The jobs will get created. The investment will be made. It's a no-brainier to me."

Cownie said he's heard great reviews from people who have visited Dave & Buster's locations across the Midwest.

"I’d love to have them in West Des Moines," he said. "I think my community would embrace it. And I think it would be a great thing for the metro."