Dave & Buster’s, $PLAY, to allow customers to bet on arcade games
Software firm Lucra Sports revealed on Tuesday its collaboration with the entertainment chain Dave & Buster’s, enabling customers to place bets on arcade games through the Dave & Buster’s app.
However, some lawmakers are raising objections.
Illinois State Rep. Daniel Didech, a Democrat from Buffalo Grove, introduced a bill on Thursday aimed at prohibiting family amusement establishments from facilitating wagering on amusement games. He also seeks to criminalize this activity by amending the Illinois Criminal Code. The bill has bipartisan support and is endorsed by over two dozen state lawmakers.
Didech stated, “It is inappropriate for family-friendly arcades to facilitate unregulated gambling on their premises. These businesses simply do not have the ability to oversee gambling activity in a safe and responsible manner.”
Didech, who also chairs the Illinois House Gaming Committee, plans to advance the legislation this session to clarify that such conduct is illegal under Illinois law.
He told CNBC that he sees several issues with the idea, including the lack of protections for problem gamblers and the exposure of younger people to gambling. He noted that while Illinois requires individuals to be 21 and older to gamble, Lucra’s service is for individuals 18 and up.
“None of those protections are in place at Dave & Buster’s locations. They haven’t even remotely done their due diligence,” Didech remarked.
The Ohio Casino Control Commission also expressed concerns, stating, “The Commission does have serious concerns about the proposal – including that it appears to violate Ohio law regarding the facilitating of illegal prizes for skill-based amusement machines. We are reaching out to Dave & Buster’s for additional information.”
Both Lucra Sports, the company powering the wagers on Dave & Buster’s app, and Dave & Buster’s declined to comment on the opposition.
With the explosion of sports betting since its legalization in much of the country, companies are seeking to capitalize on the gambling trend. Dave & Buster’s aims to offer customers a new form of entertainment to keep them engaged longer and ultimately spend more money.
Lucra stated that most wagers on its software platform, which allows users to compete for real money in friendly competitions, are around $10 on average. However, the company has not yet determined a maximum bet amount for Dave & Buster’s.
Lucra noted that the arrangement with Dave & Buster’s is not subject to the same gambling regulations or taxes as sportsbooks because peer-to-peer betting is considered skill-based. The company also stated it has extensive responsible gaming policies in place, such as options for users to self-exclude or self-limit on the platform.
Brett Abarbanel, executive director of the University of Nevada, Las Vegas, International Gaming Institute, expressed interest in seeing what safeguards, if any, will be implemented by Dave & Buster’s.
“Regardless of the legal classification of the activity as ‘not gambling’ vs. ‘gambling,’ this is an activity in which participants are risking something of value on an outcome that is uncertain. Therefore, there should be consumer protection measures in place for players, particularly when the target audience is skewed toward younger participants,” she said.