The owner of the carnival company, Goodtime Amusements, dismissed a complaint, saying the figure is not meant to be Obama.
"She [a carnival-goer] said she was offended by it. I said if you are, you might want to be. But you're interpreting it as being Obama. We're not interpreting it as Obama," said the owner, Irvin Good Jr.
After drawing more attention from the press, however, Good shut down the game and apologized.
"I didn't think it was offensive, and you know, I made the wrong judgment on it," he said. "And that's all I can say about it. We did away with it, and I'm apologizing to everybody in the world, I think."
A spokesman for the Secret Service says they've spoken with Good and that they'll take "whatever action is appropriate."