Kamil Perry
Chuck E. Cheese is an American entertainment restaurant chain with arcade games, amusement rides, and musical shows. The company has been sued multiple times for various reasons. One lawsuit was filed by a woman who claimed that the games intended for children at Chuck E. Cheese were illegal gambling devices similar to slot machines. Another lawsuit was filed by a woman who got her hair stuck in a ticket-counting machine, causing her injuries and discomfort. Additionally, YouTuber Shane Dawson was sued by Chuck E. Cheese after he was banned from the establishment for spreading a conspiracy theory about their pizzas.
| Characteristics | Values |
|---|---|
| Date of lawsuit | March 8, 2020 |
| Plaintiff | A woman |
| Defendant | Chuck E. Cheese Entertainment |
| Reason | Hair got stuck in a ticket counting machine |
| Claim | Negligence |
| Compensation | $1,000 |
| Other demands | Warning sign to be put next to the machine |
| Court | U.S. District Court |
| Judge's ruling | Pending |
| Other lawsuits | Yes |
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What You'll Learn
- A woman sued Chuck E. Cheese for getting her hair stuck in a ticket machine
- Shane Dawson sued for conspiracy theory claims about the pizza
- Sued for tot 'slots' – games intended for children are allegedly illegal gambling devices
- Denise Keller seeks to prevent CEC Entertainment from keeping the machines in game rooms
- CEC Entertainment files for bankruptcy
A woman sued Chuck E. Cheese for getting her hair stuck in a ticket machine
A woman is suing Chuck E. Cheese's after getting her hair stuck in a ticket-counting machine at one of the chain's locations in Oregon. The woman, Ashreana Scott, is suing CEC Entertainment, the company that owns Chuck E. Cheese, for $1,000, alleging that the business was negligent in its design and layout of the ticket-counting machine and failed to adequately train and supervise its employees.
According to the lawsuit, the incident occurred on December 8, 2019, at a Chuck E. Cheese location in Southeast Portland, Oregon. Scott claimed that her hair got caught in the ticket-counting machine, which is used to count tickets that are redeemed for prizes. She alleged that she was stuck for 20 minutes until a Chuck E. Cheese employee was able to free her. As a result of the incident, Scott claimed that she suffered "pain, discomfort, distress, and headaches."
Scott's lawyer, Michael Fuller, argued that Chuck E. Cheese "failed to use reasonable care in the design and layout of its ticket-counting machine to ensure that guests like plaintiff would not get their hair caught in the machine." He also accused the company of failing to properly train and supervise its employees to ensure that guests would be promptly freed in the event of an incident like this.
Prior to filing the lawsuit, Fuller demanded that CEC Entertainment's insurance company settle the negligence claim. However, the insurance company refused to pay, leaving him with no choice but to file a complaint. In addition to the $1,000 in damages, Scott has also requested a jury trial and the installation of adequate warning signs near the ticket-counting machines.
In response to the lawsuit, a spokeswoman for CEC Entertainment said that the company "cannot comment on active litigation." However, a manager at the Southeast Portland location confirmed that the ticket machines currently have signs warning people that their hair may get stuck.
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Shane Dawson sued for conspiracy theory claims about the pizza
YouTuber Shane Dawson is facing a lawsuit from pizza chain Chuck E. Cheese after revisiting a conspiracy theory he had proposed a few years ago. Dawson, who has over 20 million subscribers on YouTube, had alleged that Chuck E. Cheese was reusing leftover pizza slices from customers' tables and passing them off as new pizzas. He based this theory on the observation that the crusts on the pizza slices did not always form a perfect circle.
In his recent video announcing his new podcast, Dawson returned to this theory and decided to investigate further. He ordered two pizzas from a Chuck E. Cheese location in Los Angeles, which appeared to have a few unevenly sized slices. However, he did not attempt to talk to any employees or look into the kitchen. Dawson's video has received over 14 million views and sparked intense debates on social media, with past and present employees of Chuck E. Cheese offering their own explanations for the uneven slices.
Chuck E. Cheese has denied the allegations, stating that their pizzas are made to order with fresh dough, which sometimes results in slices that are not perfectly uniform. The company has not indicated whether it plans to take legal action against Dawson, but the YouTuber has been banned from all Chuck E. Cheese establishments.
This incident is not the first time Dawson has courted controversy. He previously faced backlash for his use of blackface and racial stereotypes in his videos and has since apologized and deleted most of the offensive content. Dawson's conspiracy-focused videos are intended as entertainment and often feature disclaimers stating that they are not statements of fact.
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Sued for tot 'slots' – games intended for children are allegedly illegal gambling devices
In 2011, Chuck E. Cheese was sued by a San Diego mother, Denise Keller, who claimed that the games in the restaurant's arcade were akin to slot machines and constituted illegal gambling devices. Keller's attorney, Eric Benink, argued that the games were not based on skill but rather on chance and could foster addictive behaviour in children. The lawsuit sought to prevent CEC Entertainment Inc., the owner of Chuck E. Cheese, from keeping these games in their arcades and requested damages and restitution of at least $5 million.
In response, CEC Entertainment argued that the games were not illegal under state law and that the California Legislature intended to target "video slot machines masquerading as legal video games" rather than children's arcade games. They also contended that Keller, as a participant in the games, should be barred from seeking damages or restitution. The outcome of the lawsuit is not known, but CEC Entertainment asked a federal judge to dismiss the case.
The lawsuit brought attention to the issue of whether certain arcade games could be considered a form of gambling and the potential impact on children. While some may argue that these games are harmless entertainment, others believe they normalise gambling and can lead to addictive behaviours at a young age.
The case highlights the ongoing debate surrounding the regulation of gambling-like activities, particularly those that may appeal to children. It remains to be seen whether this lawsuit will have any broader implications for the arcade industry or influence how states regulate these types of games in the future.
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Denise Keller seeks to prevent CEC Entertainment from keeping the machines in game rooms
Denise Keller, a San Diego-based real estate agent and mother of two young daughters, has filed a lawsuit against CEC Entertainment, the company that owns and operates the Chuck E. Cheese's family restaurant chain. Keller's lawsuit, which seeks class-action status, claims that many of the games intended for children at these locations are, in fact, illegal gambling devices akin to slot machines.
According to Keller's attorney, Eric Benink, the primary objective of the lawsuit is to prevent CEC Entertainment from retaining these machines in its game rooms across 48 states. Benink asserts that children should not be exposed to casino-style gambling devices in an arcade setting. He highlights the swift nature of the games and the presence of a roulette-style wheel in some of them.
The games in question are operated using tokens, which can be purchased for 25 cents each. Upon completion of the game, players are rewarded with tickets that can be exchanged for prizes. Keller's lawsuit argues that these games are predominantly based on chance rather than skill and could promote addictive behaviour among children by encouraging them to play repeatedly for tickets.
In response, attorneys for CEC Entertainment have argued that the games do not violate state law and that the California Legislature never intended to criminalize the operation of children's arcade games. They maintain that recent amendments to the law reflect a focus on addressing "video slot machines masquerading as legal video games."
CEC Entertainment has also asserted that even if the arcade games were deemed illegal, Keller, as a participant in the alleged gambling, should be barred from seeking damages or restitution. The company's attorneys have requested that a federal judge dismiss the case. As of the time of writing, the judge has not yet rendered a decision on this request.
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CEC Entertainment files for bankruptcy
CEC Entertainment, the parent company of Chuck E. Cheese, filed for bankruptcy in June 2020, marking the second time the company has done so since 1984. The company cited the financial strain caused by the COVID-19 pandemic and the prolonged closures of its entertainment centres due to stay-at-home orders as the primary reasons for its bankruptcy.
CEC Entertainment, which also owns Peter Piper Pizza, turned to Chapter 11 protection to facilitate a comprehensive balance sheet restructuring that would support its reopening and long-term strategic plans. Despite the bankruptcy filing, the company expected to maintain normal operations, including the reopening of its Chuck E. Cheese locations. As of 2025, nearly half of Chuck E. Cheese's 555 locations had resumed operations, with plans to reopen additional sites weekly.
In the months leading up to the bankruptcy filing, CEC approved substantial retention bonuses for its top executives. CEO David McKillips received $1.3 million, President Roger Cardinale was granted $900,000, and CFO Jay Howell obtained $675,000. Such actions are common among companies preparing for bankruptcy, as observed in the cases of Hertz and JCPenney.
The financial woes of CEC Entertainment predated the COVID-19 pandemic. Since its acquisition by Apollo Global Management in 2014 for $1.3 billion, the company had incurred losses in four of the five preceding years, with a $28.9 million loss in 2019, reflecting a 41% increase from 2018.
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Frequently asked questions
Yes, there have been several lawsuits against Chuck E. Cheese. One notable case involved a woman who sued the company after her hair got stuck in a ticket-counting machine, claiming negligence and seeking compensation.
It is unclear what the outcome of the lawsuit was, but the woman sought $1,000 in compensation and wanted a warning sign posted near the machine to prevent similar incidents from occurring again.
Yes, in 2011, a woman named Denise Keller sued the company, alleging that the games in their arcade were illegal gambling devices that could foster addictive behaviour in children. The outcome of this lawsuit is also unclear.
Yes, YouTuber Shane Dawson was sued by Chuck E. Cheese after he was banned from the establishment. This was due to a conspiracy theory he shared about the pizza being made from slices of other pizzas that customers had only half-eaten.
