In between Dave & Buster’s screen-lit aisles and makeshift arenas, it’s not uncommon to see groups of friends competing with each other. With over 222 franchises nationwide, the arcade chain offers a wide range of friendly physical and virtual games like Hot Shots basketball, Skee-Ball, air hockey, billiards, virtual car racing, and shooting challenges. And that’s just the beginning. ATS.io explores how gambling is making its way into arcades across the United States and the implications for both industries.
In a collaboration with technology company Lucra, Dave & Buster’s announced in April 2024 its plans to allow customers to place bets on arcade games through a social wagering channel on its app. The gamification software will enable peer-to-peer digital cash bets on “skill-based” games, defined as activities where the outcome depends on the participants’ knowledge, ability, strength, speed, endurance, intelligence, and control, as stated by Lucra’s chief operating officer Michael Madding in an interview with The New York Times.
Loyalty members will have the opportunity to bet on each other’s recreational skills, earn rewards, and unlock exclusive perks, bridging the gap between sports betting and arcade fandom. Simon Murray, senior vice president of entertainment and attractions at Dave & Buster’s, expressed excitement about the new partnership in the company’s press release.
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Gambling and gamification’s intertwined fates
The decision to introduce betting options is a strategic move by arcades and casinos to capitalize on the growing gambling industry. With nearly 40 states legalizing sports betting and record revenues in 2023, this industry is experiencing significant growth. Daniel Wallach, a gaming law and sports betting attorney, sees potential in this move by Dave & Buster’s, leveraging the success of fantasy sports and sports betting.
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A bid to remain relevant
In the post-pandemic era, entertainment venues are seeking new ways to attract and retain customers. Many arcades have integrated hospitality elements and virtual/augmented reality experiences to draw in customers. Casinos are incorporating video game elements into their slots, inspired by sports betting companies, to enhance player engagement.
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The family-friendly quandary
As arcades like Dave & Buster’s cater to families, concerns about underage gambling have been raised. Lucra clarifies that their betting services are meant for adults 18 and older, with modest contest sizes. However, without regulation, the chain faces scrutiny and potential risks of underage betting. State regulation could provide consumer protection in this scenario.
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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.
