A Dave & Buster’s location in the Gateway Center shopping complex in the New York City borough of Brooklyn, USA, on Saturday, March 30, 2024.
Bing Guan | Bloomberg | Getty Images
Arcade chain Dave and Buster The plan to allow customer bets does not convince everyone.
Software company Lucra Sports announced Tuesday that it is partnering with the entertainment chain to allow customers to place bets on its arcade games through the Dave & Buster’s app.
But some lawmakers are calling it a foul.
Illinois state Rep. Daniel Didech, a Democrat from Buffalo Grove, filed a bill Thursday that would ban family amusement establishments from allowing betting on amusement games. He also wants to criminalize this activity by changing the Illinois penal code. His bill has bipartisan support and is supported by more than two dozen other state lawmakers.
“It is inappropriate for family-friendly arcades to allow unregulated gambling on their premises. These companies are simply unable to monitor gambling activities in a safe and responsible manner,” Didech said in a statement.
Didech, who is also chairman of the Illinois House Gaming Committee, said he would advance legislation this session to make it clear that such behavior is illegal under Illinois law.
Didech told CNBC that he sees many problems with the idea, from the lack of protection for problem gamblers to the risk that gambling puts younger people at risk. He said while Illinois requires a minimum age of 21 to play, Lucra’s service is intended for those 18 and older.
“Dave & Buster’s locations have none of these protections in place. They haven’t even remotely done their due diligence,” Didech said.
Customers play a car racing arcade game at a Dave & Buster’s Entertainment location.
Timothy Fadek | Bloomberg | Getty Images
The Ohio Gaming Control Board has also taken note.
“The Commission has serious concerns about the proposal – including the fact that it appears to violate Ohio law regarding the brokering of illegal prizes for skill-based slot machines,” an Ohio Casino Control Commission spokesperson told CNBC. “We’ll contact Dave & Buster’s for more information.”
Both Lucra Sports – the company that runs the betting on Dave & Buster’s app – and Dave & Buster declined to comment on the opposition.
As sports betting has exploded since it became legal in much of the country, companies are trying to capitalize on the gambling craze. The idea behind Dave & Buster’s is to give customers a new form of entertainment, keep them longer and ultimately spend more money.
Lucra said most stakes on its software platform, which allows users to compete in friendly competitions for real money, average about $10. However, the company has not yet decided on a maximum bet amount for Dave & Buster’s.
Lucra said the agreement with Dave & Buster’s is not subject to the same gambling regulations or taxes as sports betting because peer-to-peer betting is considered skill-based betting. Lucra also said there are comprehensive responsible gaming policies in place, such as self-exclusion or self-restriction options on the platform.
Brett Abarbanel, executive director of the International Gaming Institute at the University of Nevada, Las Vegas, said she is interested to see what, if any, safety measures are implemented by Dave & Buster’s.
“Regardless of the legal classification of the activity as ‘not gambling’ vs. ‘gambling,’ it is an activity in which participants risk something of value whose outcome is uncertain. Therefore, consumer protection measures should be in place for players, especially if the target audience is more skewed towards younger participants,” she said.
Correction: This article has been updated to reflect the correct date that Illinois State Rep. Daniel Didech’s bill was filed.
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2024-05-03 18:38:17
www.cnbc.com
