Arcade and restaurant company Dave & Buster’s has announced plans to offer “social wagering” on its app – a move that would allow customers to bet against each other when playing skill games at the chain’s various locations. 

The new functionality, which will come via partnership with gamification software provider Lucra Sports, is expected to launch in the next few months.

Companies Avoid Gambling Terminology

The new option won’t allow you to win money from Dave & Buster’s, and Lucra has been careful to avoid the terms “betting” or “wagering” when it comes to its products. Instead, players will be able to challenge their friends to real money competitions on Skee-Ball, Hot Shots basketball games, and other arcade video game options. 

“We’re thrilled to work with Lucra to bring this exciting new gaming platform to our customers,” Simon Murray, senior vice president of entertainment and attractions for Dave & Buster’s, told CNBC. “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.” 

Lucra was founded in 2019 by Dylan Robbins and Michael Madding, who say they saw it as a way to capitalize on informal wagers between friends at a time when legalized sports betting was picking up more serious gamblers. The company already has deals with pickleball ratings system Dupr and tennis app TennisOne to facilitate real money competition for these recreational sports. Lucra says it has already collected more than $20 million in handle from more than one million unique “contests.”

“Whether you’re playing pickleball with your friends or playing golf on the weekend, we help to amplify that and digitize that experience with our partners,” Robbins told CNBC. 

Lucra Works Around Gambling Regulations

Because Lucra only allows informal, peer-to-peer betting on skill-based athletics and arcade games, it doesn’t have to acquire gaming licenses or deal with the same regulations as full-fledged online casino, poker and sports betting operators. 

While Lucra can point to success in pickleball and other arenas, there are questions over the widespread appeal of such an app when individuals can make informal bets just as easily without it. As Business Insider reported, some users on the Dave & Buster’s subreddit have wondered whether or not the app would take a cut of the action, which could deter players from downloading while also attracting the attention of gaming authorities. 

Despite its attempts to steer clear of regulatory hurdles, Lucra hasn’t always been successful at pleasing regulators. Last year, Lucra Sports was among several websites that the Ohio Casino Control Commission contacted, believing that it was offering what amounted to illegal fantasy sports offerings. Lucra acknowledges that its contests – available only to players 18 and older – are available in only 44 states. 

Dave & Buster’s, based in Dallas, Texas, was founded in 1982, and operates 166 venues throughout North America and Puerto Rico, according to the company website. They offer arcade games, laser tag, bowling, and other entertainment options. According to the company, the business has 30 million unique visitors to its locations each year. 

(Image: Will Vragovic/Tampa Bay Times/ZUMA Wire/Alamy)