Dave & Buster’s arcade game betting venture sparks youth gambling concerns

Dave & Buster’s Entertainment (NASDAQ:PLAY) is planning to launch online betting on arcade games, a move that has raised concerns over potential gambling addiction risks among youth.

The restaurant and entertainment company this week said it would integrate sports betting platform Lucra’s software into its app, with the launch expected in the next few months.

With this, Dave & Buster’s (PLAY) loyalty members can make small bets of $5-$10 on arcade games through its app. It remains unclear if the company will charge a fee for the new service and which games would users be able to place bets on.

Its app features games such as Skee-Ball, Hot Shots basketball, Dance Dance Revolution, billiards, and air hockey.

Some fear the new app feature could eventually lead to increased gambling problems among young people.

“Providing ‘social’ gambling at youth-oriented locations like Dave & Buster’s (PLAY) raises concerns about youth exposure to and participation in gambling,” Keith Whyte, executive director of the National Council on Problem Gambling, told MarketWatch, calling on state gambling regulators to examine the legal justifications and addiction risks.

To note, Lucra doesn’t use the terms “bet” or “wager” on its platform, and instead uses words like “real-money contests.” Its games are not subject to traditional betting rules as they are considered skill-based, not chance-based.