State Regulators Taking Notice of New Dave & Busters Gaming Plan

© Richard Lane/For the Register / USA TODAY NETWORKDave & Buster’s announced a partnership with Lucra Sports and a new gaming proposal for its locationsThe partnership integrates Lucra’s software into the Dave & Buster’s app to allow loyalty members to compete with one another in arcade games for real moneySeveral state gaming regulatory bodies have questions and concerns over the plan

A new Dave & Buster’s plan to allow its loyalty members to compete in real-money arcade contests has raised the eyebrows of several state gaming regulatory agencies.

The national restaurant and entertainment business announced this week a new partnership with Lucra Sports, a technology provider of gamification services, to integrate its gamification software into the Dave & Buster’s app. It will allow loyalty members to digitally compete in real-money arcade contests at its locations throughout the country beginning in the next several months.

The new technology will allow Dave & Buster’s loyalty members to compete against other customers for real money on such games as skee-ball or pop-a-shot through its app, but has brought about concerns from gaming regulators who believe it may toe the line of illegal gaming in their states.

Is This Gambling?

Lucra Sports describes its contests as skill-based games, which they say are not subject to the same licensing processing or regulations as gambling operators in a state. Placing money on skill games, such as daily fantasy sports or fantasy pick’em contests, are currently offered throughout the country.

In an interview with Marketplace.org, Michael Madding, chief operating officer of Lucra Sports, said the company verifies its users are 18 and “allows for the ability to play for cash.” It is not gambling, Madding said, but putting money on your own abilities.

“We’re very conscious to not use the word ‘bet’ or ‘wager’ anywhere in our product,” he said in the interview. “We say things like ‘challenge’ or ‘competition’ or ‘contest.’”

Skill-based games are not as taxed or regulated as heavily as gambling on games of chance.

Simon Murray, SVO of Entertainment and Attraction at Dave & Buster’s, said in a press release this partnership will give loyalty members a new form of entertainment at its 222 locations in the U.S.

“We’re thrilled to work with Lucra to bring this exciting new gaming platform to our customers,” he said. “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.”

As the company intends to unveil this new technology over the next several months, it has piqued the interest of several gaming boards that may consider this as a form of gambling and should be regulated as such.

Possible Illegal Gaming Venture?

A spokesperson for the Ohio Casino Control Commission told Sports Betting Dime that Dave & Buster’s has not contacted the commission about any plan to institute the technology at any of its six locations in the state, but the commission is uncertain about the legality of the new offering.

“The commission has serious concerns that it appears to violate Ohio law, and will be following up on the matter,” the spokesperson said.

It’s worth noting that FanDuel’s Faceoff app, which allows users 18 and over to compete against each other in real-money games of skill, is currently live and available in Ohio.

Ronnie S. Johns, chairman of the Louisiana Gaming Control Board, also told Sports Betting Dime that Dave & Buster’s has not approached the board to approve the new gaming concept. Dave & Buster’s has two locations in the state.

If the company approaches the board with its proposal, Johns said it will be considered as any other. However, with what details he has of plan, Johns said it’s his opinion that it would fall under the category of an illegal gambling operation.

“I feel that this would be an illegal gambling operation under the current statutes and rules of gaming law in our state. I will happy to have a conversation with Dave & Buster’s should they choose to petition our board,” he said.

The FanDuel Faceoff app is available in Louisiana, but only for free-to-play games. It prohibits contests for real money in the state.

A spokesperson for the Pennsylvania Gaming Control Board noted the board is aware of the proposal and is gathering more information before it can make an official statement on the new technology. Dave & Buster’s has eight locations in the state.

It’s unknown if Dave & Buster’s will seek approval from state gaming commission’s prior to launching its new technology in states with legalized gambling. Multiple requests for comment to Dave & Buster’s and Lucra Sports were not returned.