The Entertainment Software Association will receive $950,000 from the state of California for legal fees spent fighting a law on violent video games.
The US Supreme Court ruled in favour of the ESA last June, killing a California law that sought to ban the sales of video games to children, and affording games First Amendment protection.
"Senator Yee and Governor Schwarzenegger wasted more than $1 million in taxpayer funds at a time when Californians could ill afford it," said CEO Michael D. Gallagher.
"However we feel strongly that some of these funds should be used to improve services for California's youth."
The money will come from taxpayers, and brings the total reimbursements received by the ESA over legal fees for fighting video game regulation to $3.1 million.
A percentage of these funds will be donated to a education programme centred around video games.