Dave and Buster’s, the popular restaurant and entertainment chain, is entering the betting business by partnering with gamification technology company Lucra to allow its five million loyalty members to make small bets on arcade games through its app. The move comes as a way for the company to capitalize on the growing popularity of online sports betting apps and the $6 billion social betting sector. The company operates about 222 venues across North America, serving nearly 50 million unique visitors a year. Shares of Dave and Buster’s have increased by over 50% in the past 12 months.
Lucra, the technology company behind the partnership, does not refer to the betting feature as gambling or wagering, but rather as a skills-based game. This distinction allows them to avoid the regulations and permitting requirements that traditional gambling operators are subject to. As a result, Dave and Buster’s could potentially launch the new betting program in as quickly as a week. The technology will enable users to place bets on low-stakes social games, such as Skee-Ball, Hot Shots basketball, or Dance Dance Revolution, adding a competitive element to the entertainment experience.
While the partnership with Lucra presents an opportunity for Dave and Buster’s to generate additional revenue, some customers are skeptical about the new betting feature. Concerns have been raised about the potential fees associated with the service and the perceived intrusion of commercialized betting on social interactions. Despite these reservations, the company has not disclosed any details about fees or how the betting system will operate. The introduction of technology that allows users to make wagers on arcade games reflects a broader trend of gamifying social activities and digitizing offline competitive experiences.
Leaders at Lucra believe that gamification and digitization of offline activities offer a significant opportunity for businesses to engage consumers in friendly competition. By adapting traditional games to be wagered on through digital platforms, companies like Dave and Buster’s can tap into the competitive spirit of customers and enhance the overall entertainment experience. The $6 billion social betting sector presents a lucrative market for companies looking to diversify their revenue streams and attract new customers. The partnership between Dave and Buster’s and Lucra represents a strategic move to capitalize on this growing trend.
Overall, the expansion into gambling by Dave and Buster’s underscores the evolving landscape of entertainment and leisure activities. As companies seek to innovate and engage customers in new ways, partnerships with technology providers like Lucra enable them to offer unique experiences that cater to changing consumer preferences. The integration of betting features into arcade games and other social activities reflects a broader shift towards digitalization and gamification in various industries. While some customers may have reservations about commercialized betting, the potential for growth and profitability in the $6 billion social betting sector presents a compelling opportunity for businesses like Dave and Buster’s.
