Popular restaurant and arcade chain, Dave & Buster’s, recently announced they would be adding a betting feature to its mobile app in which friends can place a friendly mobile bet on arcade competition. However, an Illinois legislator is sponsoring a bill to make sure that doesn’t happen.
Rep Says More Is Not Better
Dave & Buster’s Entertainment, Inc., operates 222 restaurant/entertainment locations throughout North America and has become wildly popular for family fun as their locations offer food, drink, and plenty of arcade games, even laser tag. Wall Street has also smiled favorably upon the company as its stock has risen 46.4% over the past year.
Therefore, when the family entertainment company announced it would be adding an arcade betting option to its mobile app, it caused a few eyebrows to arch. Illinois State Representative Dan Didech was one of those people, and he forged his concerns in the form of House Bill 5832, also known as the Family Amusement Wagering Prohibition Act.
“Gambling establishments are among the most strictly regulated businesses in Illinois. Everyone involved in the gambling industry in Illinois undergoes thorough background checks, is required to implement security protocols, can only offer games that are fair and safe for players, and must create a responsible environment to protect minors and problem gamblers,” said Didech, who also chairs the state’s House Gaming Committee. “It is inappropriate for family-friendly arcades to facilitate unregulated gambling on their premises. These businesses simply do not have the ability to oversee gambling activity in a safe and responsible manner.”
Keith Whyte, Executive Director of the National Council on Problem Gambling, echoed Representative Didech’s concerns, saying, “Unlicensed and unregulated gambling is associated with increased gambling problems in adults and youth. We call on state gambling regulators to examine the legal justifications and gambling-addiction risks of ‘social’ gambling, especially in settings that cater to youth and families.”
D&B Announcement
Dave & Buster’s has yet to respond to Didech’s bill as the company has trumpeted its partnership in the arcade friendly-betting sector with technology company Lucra.
Simon Murray, Dave & Buster’s Senior Vice President of Entertainment and Attractions, released a statement that said: “We’re thrilled to work with Lucra to bring this exciting new gaming platform to our customers. This new partnership gives our loyalty members real-time, unrivaled gaming experiences, and reinforces our commitment to continuing to elevate our customer experience through innovative, cutting-edge technology.”
The technology partner with whom D&B is collaborating, Lucra, is a relatively new company that was co-founded by two former Goldman Sachs co-workers, Dylan Robbins, and Michael Madding. The company has raised $14 million in venture capital comprised of high-profile investors like Marc Lasry and professional athletes like Julie and Zach Ertz.
“We’re creating a new form of kind of a digital experience for folks inside of these ecosystems,” said Madding, Lucra’s chief operating officer. “We’re getting them to engage in a new way and spend more time and money,” he added.
What Now?
It is uncertain whether Dave & Buster’s will continue to pursue this unique strategic offering in Illinois considering Representative Didech’s objections. The rollout isn’t expected for another few months but Didech did state he would withdraw his legislation if Dave & Buster’s decides to abandon the idea of arcade betting at their establishments.
Didech said, “If they were to announce that they’ve changed their mind and not going to do it, it would take some of the urgency off legislating the issue. But it’s probably something we should do anyway. They’re not the only business that would fall under this category.”
