Dave and Buster's Introducing Gambling in Rewards Program Meets Resistance
Last week, Dave & Buster's made news when they revealed their plans to integrate P2P in-app betting into their arcade games. This announcement sparked concerns and pushback from state gaming regulators and lawmakers who are questioning whether this type of wagering violates gambling laws.
Dave & Buster's is teaming up with gaming software developer Lucra to incorporate social betting into their "D&B Rewards" mobile app. The restaurant and entertainment company believes that friendly wagering between family and friends is just a form of social gaming; it's like placing small stakes on skill-based contests, much like what's found in social gaming apps.
However, Illinois State Rep. Daniel Didech (D-Buffalo Grove) doesn't see this argument as convincing. After learning about Dave & Buster's betting plans, he intends to file legislation in Springfield to ensure that this kind of gambling doesn't become widespread in arcades throughout the state.
Possible Issues with Regulation
Didech has raised several concerns about the potential for in-app betting at Dave & Buster's. He fears that it could lead to underage gambling, as Lucra's gamification products (which are marketed as "friendly competition" based on "real-money contests and challenges") have few measures to stop minors from gambling among themselves.
He believes that family-friendly arcades should not be allowed to facilitate unregulated gambling on their premises. These businesses are not equipped to oversee gambling activities in a safe and responsible manner, he argued.
According to Lucra, their real-money betting services are intended for adults 18 and older. But Didech points out that the D&B Rewards app can be easily manipulated by someone under that age to access the betting integration.
While casinos have strict protections in place for age verification, such as asking for identification on entry and implementing age checks at retail and online sportsbooks, arcades lack these safeguards.
"None of those protections are in place at Dave & Buster's locations. They haven't even made an attempt to properly address the issue," Didech told CNBC.
The Ohio Gaming Commission also expressed concerns about arcade betting. They believe that the proposal may break Ohio law regarding the granting of illegal prizes for skill-based amusement machines.
"We have serious concerns about the plan—including that it appears to violate Ohio law regarding the facilitation of illegal prizes for skill-based amusement machines," a spokesperson for the regulatory agency told CNBC. "We are reaching out to Dave & Buster's for more information."
With over 200 locations in North America, including more than 160 in the US, Dave & Buster's has locations in Illinois and Ohio.
Shifting Company Demographic
Brett Abarbanel, executive director of the International Gaming Institute at UNLV, expressed his concerns about Dave & Buster's desire to introduce betting to their arcade app.
"There should be consumer protection measures in place for players, especially when the target audience is skewed towards younger participants," Abarbanel said to CNBC.
However, Dave & Buster's claims that their target demographic has changed in recent years. In 2022, their executives launched a campaign to raise their target demographic to those aged 21–39, citing a desire to "mature" their brand.
"The core focus for our Dave & Buster's brand moving forward will be aimed at executing adult occasions for people aged 21–39 who are visiting our locations to enjoy themselves with their friends," Dave & Buster's CEO Chris Morris said in 2022. "In the months and years to come, this refined brand positioning will guide our marketing strategy, entertainment innovation pipeline, food and beverage offerings, store design and layout, and tech-enabled hospitality model."
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Source: www.casino.org
