Among the screen-lit aisles and makeshift arenas of Dave & Buster’s, groups of friends often compete with each other. With a variety of physical and virtual games like Hot Shots basketball, Skee-Ball, air hockey, billiards, virtual car racing, and shooting available at more than 222 franchises across the country, there’s something for everyone to master. And this is just the beginning. ATS.io has outlined how gambling is making its way into arcades in the United States and the potential implications for both industries.
In a partnership with technology company Lucra, Dave & Buster’s announced in April 2024 its plans to introduce a social wagering channel on its app, allowing customers to bet on arcade games. The gamification software will enable peer-to-peer digital cash bets on “skill-based” games, which are defined as activities where the outcome is mostly dependent on the participants’ knowledge, ability, and other factors that they control, as mentioned by Lucra’s COO, Michael Madding, in a statement to the New York Times.
Loyalty members will have the opportunity to digitally wager on each other’s recreational abilities, earn rewards, and unlock exclusive perks, effectively merging the worlds of sports betting and arcade fandom. Simon Murray, senior VP of entertainment and attractions at Dave & Buster’s, expressed excitement about the innovative technology enhancing the customer experience.
Gambling and gamification’s intertwined fates
The move to venture into the betting realm is a strategic decision made by Dave & Buster’s to leverage the growth of the gambling industry. With close to 40 states legalizing sports betting as of May 2024, the industry reached record revenues in 2023, contributing to the overall success of existing and emerging markets. Additionally, the traditional casino games market has seen significant growth as well. The rise in popularity of fantasy sports also indicates a lucrative future for this sector.
Daniel Wallach, a gaming law and sports betting attorney, highlighted the correlation between skill games, sports betting, and fantasy sports, emphasizing the legal viability of Dave & Buster’s approach.
A bid to remain relevant
In a competitive post-pandemic landscape, entertainment venues like Dave & Buster’s are exploring new ways to attract and retain customers. Many arcades have integrated more hospitality elements and virtual reality opportunities to create a unique experience for patrons. Casino establishments have also adopted gamification strategies to keep players engaged and entertained.
While some venues rely on nostalgia and classic arcade games to draw customers, others like Dave & Buster’s are looking to innovate and tap into new revenue streams through gamification.
The family-friendly quandary
Considering its family-friendly image, Dave & Buster’s foray into arcade gambling raises concerns about underage gambling. Lucra has set age restrictions for its betting services, but the lack of regulation poses challenges and potential scrutiny for the chain.
Despite potential hurdles, the peer-to-peer betting venture is likely to inspire imitators in the industry, with other entertainment venues exploring similar gamification strategies. From pickleball ratings systems to tennis apps, the concept of skill-based gaming in recreational activities is gaining traction.
Story editing by Carren Jao. Copy editing by Tim Bruns.
This story originally appeared on ATS.io and was produced and distributed in partnership with Stacker Studio.
