Restaurant chain Dave & Buster’s raises questions with plan to introduce gambling into its establishments

Industry

Arcade and restaurant chain Dave & Buster’s has announced plans to introduce gambling elements into its establishments. Instead of the traditional model where players earn tickets redeemable for prizes, under this new modality, customers would have the opportunity to wager real money on select games, such as Skee-Ball and billiards.

Partnering with Lucra, a software company specializing in real-money “gamification” software, Dave & Buster’s aims to develop a digital wagering platform accessible through its loyalty club app. The collaboration seeks to capitalize on the growing trend of peer-to-peer betting, but it has also raised questions about its legality.

The technology underpinning the betting platform would be connected to “skill-based” games, where outcomes hinge on participants’ knowledge, ability, and intelligence, rather than sheer luck. While the specifics regarding the implementation of this plan remain undisclosed, the plan has been met with skepticism from some quarters. 

With its headquarters in Dallas, Dave & Buster’s boasts approximately 160 locations across the United States, including prominent sites in Philadelphia, Pennsylvania, and Atlantic City. Concerns were raised about the potential implications of integrating gambling into family-friendly venues, prompting debate among stakeholders.

Regulatory bodies overseeing gambling operations have adopted a cautious stance in response to the Dave & Buster’s announcement. The Pennsylvania Gaming Control Board acknowledged awareness of the plan.

It’s certainly something we’re going to look into, just to learn more about it. We’re always watching for new things that are coming around — lots of fantasy sports and those kinds of things. From this angle — this is new,” said Richard McGarvey from the Board.

Pennsylvania’s online gambling industry generated over $2.1 billion in revenue last year. A survey conducted by Penn State University revealed that half of respondents who engaged in online betting reported experiencing issues such as increased frequency and spending. In the face of these findings, some argue that expanded gambling opportunities at restaurants might not be the best course of action.

CNBC reported Dave & Buster’s hopes to roll out its betting platform within the next few months. Michael Madding, Lucra’s chief operating officer, told the cable network that the company believes the restaurant chain’s skill-based games are not subject to the same regulations as casino games of chance, like roulette and blackjack.

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