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IN THE COURT OF APPEALS OF IOWA No. 7-942 / 06-2086 Filed February 13, 2008 D2 ENTERPRISES, INC., Plaintiff-Appellant, vs. STATE OF IOWA DEPARTMENT OF INSPECTIONS AND APPEALS, Defendant-Appellee. ________________________________________________________________ Appeal from the Iowa District Court for Polk County, William H, Joy, Judge.

D2 Enterprises, Inc. appeals from the district court order on judicial review. AFFIRMED.

Blake Parker of Blake Parker Law Office, Fort Dodge, for appellant. Thomas J. Miller, Attorney General, and John Lundquist, Assistant Attorney General, for appellee.

Heard by Eisenhauer, P.J., and Baker, J., and Nelson, S.J.*
*Senior judge assigned by order pursuant to Iowa Code section 602.9206 (2007).

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EISENHAUER, J. The sole issue presented for our review in this case is whether the Department of Inspections and Appeals correctly determined the Speed Master is an electrical amusement device subject to the registration requirements of Iowa Code section 99B.10(4) (2003). district court's order on judicial review. I. Background Facts and Proceedings. D2 Enterprises, Inc. (D2) is a business that sells and leases electronic games to distributors. Its Speed Master device allows a player to win the "prize" of credits that can be applied for the purchase of merchandise. Credits are won when a player aligns three symbols in a line on a randomly generated screen. Credit is deducted each screen played and added in varying amounts based on the value of the symbols aligned when a player wins a screen. Prior to introducing the Speed Master in Iowa, D2 filed a petition for declaratory order with the Iowa Department of Inspections and Appeals seeking a determination that the Speed Master game is not an electrical amusement device requiring registration with the department. D2 submitted a forensic report and a meeting between a representative of the department and D2 was held on January 16, 2006. The department denied the request on April 11, 2006. The department's order refers to additional information made available to the department by D2, however it is unclear what additional information was submitted. The record on appeal consists of the pleadings, the forensic report, and four photographs of the machine. The district court affirmed the department on judicial review. Because we find it did, we affirm the

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II. Scope and Standard of Review. Iowa Code chapter 17A (2005) governs judicial review of agency action. When the district court exercises its judicial review power it acts in an appellate capacity to correct errors of law on the part of the agency. Grundmeyer v. Weyerhaeuser Co, 649 N.W.2d 744, 748 (Iowa 2002). Our review of the district court's decision requires application of the standards of Iowa Code section 17A.19(10) to determine whether our conclusions are the same as those of the district court. P.D.S.I. v. Peterson, 685 N.W.2d 627, 632 (Iowa 2004). If they are the same, we affirm; if not, we reverse. Id. A party challenging agency action bears the burden of demonstrating the action's invalidity and resulting prejudice. Iowa Code

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