Chuck E. Cheese’s wants the city to loosen its gambling ordinance so it can hand out more prize tickets.

As we first reported last year, games at the popular pizza chain only dispense four prize tickets per token at the Lynnwood location, regardless of the final score. It’s because of a city law that pertains to gambling.

The company’s law firm sent the city a letter to request the ordinance be changed:

“Currently, Chuck E. Cheese’s Lynnwood location is the only location in Washington state that cannot dispense game tickets based on skill. In fact, there is only one state (New Jersey) and one city (Lynnwood) nationwide that prohibits dispensing tickets based on skill. As you can imagine, these prohibitions have a significant impact upon customer experience and satisfaction as well as on Chuck E. Cheese’s sales revenue,” the letter said.

It went on to say that the Lynnwood location has the lowest game revenues in western Washington.

“We would like to have it become tickets dispensed per score instead of the current four tickets per coin.  We feel this would make us more competitive with the rest of the Seattle market,” company spokesperson Brenda Holloway told us in May 2011.

The City Council will discuss the issue at its regular meeting this Tuesday.