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Source/Full Story - GamingAmerica'
A newly-formed advocacy group in South Carolina has sued Dave & Buster’s, alleging that the national entertainment
chain’s business model constitutes illegal gambling.
Like many arcades, D&B allows customers to win tickets while playing games. They can then exchange these tickets for prizes.
In D&B’s case, that can include electronics with a resale value of hundreds of dollars.
According to SC Citizens For Equal Enforcement of Gambling Laws, LLC, the D&B business model fits key characteristics
of illegal gambling. Crucially, the lawsuit says, “whether an activity is gaming/gambling is not dependent upon the relative
roles of chance and skill, but whether there is money or something of value wagered on the game’s outcome.”
Because of the high values attached to some of the prizes available at D&B, and because players are encouraged to spend
money to try to earn these prizes, the lawsuit contends that D&B is operating a gambling business by South Carolina’s definition.
“Defendant’s redemption gaming machines are precisely the type of machines prohibited by South Carolina law,” the lawsuit said.
“Patrons purchase Power Card gaming credits at kiosks for the express purpose of trying to “win” more — in the form of tickets
redeemable for valuable prizes — whether by skill or chance.”
Advantage Gamblers Have Targeted Dave & Buster’s
While most people don’t see Dave & Buster’s and immediately think “disguised casino” or “gambling,” it has flirted with the line before.
For one thing, in 2024, D&B partnered with a company called Lucra to pair its arcade games with a betting app. Essentially,
players with loyalty accounts at D&B could load money into their digital wallets. They could then use the “Playce It” function
to bet against another player on the results of one of the arcade games.
From D&B’s description of Playce It:
“How much money is on the line? That’s up to you. Just create or accept a matchup with another player and get ready for some head-to-head action.”
It’s not clear whether the function gained any traction. D&B still lists Playce It as available in four states, though South Carolina
isn’t among them. Despite the lawsuit’s claims, the relative balance of luck and skill does make a difference in some jurisdictions,
and D&B relies on the skill element of its games (as well as the peer-to-peer structure) to stay on the right side of the law in Texas,
Georgia, Missouri, and California, where Playce It is available.
If there was any doubt about the skill element or the value of the prizes, that combination of factors has given rise to a small community
of advantage players targeting D&B, the way sharp bettors target Sportsbooks and casinos. WIRED covered the phenomenon in an extensive
feature in 2015. In some cases, the mechanics of D&B advantage play are similar to those of slot machines. While a skill element differentiates
D&B, having an edge in certain games demands knowledge of the game state, much like evaluating a slot machine that’s primed to deliver a jackpot.
According to the lawsuit, D&B retains almost 92 cents per dollar, meaning the business model returns a microscopic 8% to the player.
A newly-formed advocacy group in South Carolina has sued Dave & Buster’s, alleging that the national entertainment
chain’s business model constitutes illegal gambling.
Like many arcades, D&B allows customers to win tickets while playing games. They can then exchange these tickets for prizes.
In D&B’s case, that can include electronics with a resale value of hundreds of dollars.
According to SC Citizens For Equal Enforcement of Gambling Laws, LLC, the D&B business model fits key characteristics
of illegal gambling. Crucially, the lawsuit says, “whether an activity is gaming/gambling is not dependent upon the relative
roles of chance and skill, but whether there is money or something of value wagered on the game’s outcome.”
Because of the high values attached to some of the prizes available at D&B, and because players are encouraged to spend
money to try to earn these prizes, the lawsuit contends that D&B is operating a gambling business by South Carolina’s definition.
“Defendant’s redemption gaming machines are precisely the type of machines prohibited by South Carolina law,” the lawsuit said.
“Patrons purchase Power Card gaming credits at kiosks for the express purpose of trying to “win” more — in the form of tickets
redeemable for valuable prizes — whether by skill or chance.”
Advantage Gamblers Have Targeted Dave & Buster’s
While most people don’t see Dave & Buster’s and immediately think “disguised casino” or “gambling,” it has flirted with the line before.
For one thing, in 2024, D&B partnered with a company called Lucra to pair its arcade games with a betting app. Essentially,
players with loyalty accounts at D&B could load money into their digital wallets. They could then use the “Playce It” function
to bet against another player on the results of one of the arcade games.
From D&B’s description of Playce It:
“How much money is on the line? That’s up to you. Just create or accept a matchup with another player and get ready for some head-to-head action.”
It’s not clear whether the function gained any traction. D&B still lists Playce It as available in four states, though South Carolina
isn’t among them. Despite the lawsuit’s claims, the relative balance of luck and skill does make a difference in some jurisdictions,
and D&B relies on the skill element of its games (as well as the peer-to-peer structure) to stay on the right side of the law in Texas,
Georgia, Missouri, and California, where Playce It is available.
If there was any doubt about the skill element or the value of the prizes, that combination of factors has given rise to a small community
of advantage players targeting D&B, the way sharp bettors target Sportsbooks and casinos. WIRED covered the phenomenon in an extensive
feature in 2015. In some cases, the mechanics of D&B advantage play are similar to those of slot machines. While a skill element differentiates
D&B, having an edge in certain games demands knowledge of the game state, much like evaluating a slot machine that’s primed to deliver a jackpot.
According to the lawsuit, D&B retains almost 92 cents per dollar, meaning the business model returns a microscopic 8% to the player.
