Illinois Bill Would Block Dave and Buster’s Betting Program

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-03:19
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Well, it was fun while it lasted. 

Arcade and restaurant company Dave and Buster’s announced on Tuesday that it intended to allow real-money “friendly” wagering on gaming machines within the next few months. An Illinois representative on Thursday presented legislation to prohibit “family-friendly arcades” from enabling arcade gambling on its premises.

The proposal still needs approval from both chambers of the Illinois congress to be passed into law—but it is an early sign of the opposition to further expansion of gambling.

A swift response

Illinois Rep. Daniel Didech (D-59) is the man behind the piece of legislation that is making headlines. 

HB 3852, known as the “Family Amusement Wagering Prohibition Act,” would block Dave and Buster’s from facilitating real-money wagering at its locations, of which there are five in Illinois. The bill specifies that family-friendly arcades cannot promote or “[take] any action that knowingly allows any entity to facilitate gambling on amusement games on the family amusement establishment’s premises.”

Didech holds a special position of power not just as a standard representative, but also as the chairman of the House Gaming Committee.

A press release announced the introduction of the bill to the public. In it, Didech claimed that Dave and Buster’s plan to circumvent standard gaming regulation was inappropriate given the nature of its general business.

“Gambling establishments are among the most strictly regulated businesses in Illinois,” said Didech in the release. “Everyone involved in the gambling industry in Illinois undergoes thorough background checks, is required to implement security protocols, can only offer games that are fair and safe for players, and must create a responsible environment to protect minors and problem gamblers.

“It is inappropriate for family-friendly arcades to facilitate unregulated gambling on their premises,” Didech continued. “These businesses simply do not have the ability to oversee gambling activity in a safe and responsible manner.”

Closing loopholes

Dave and Buster’s said in its announcement that it would offer “friendly” wagering up to a certain threshold with the help of gamification software company Lucra. 

Lucra was formed with the goal of taking advantage of the building momentum and power of the sports betting industry. Its collaboration with Dave and Buster’s would not require either party to obtain a gaming license and thus subject themselves to regulatory approval since Lucra’s solution would classify as a “game of skill.”

Lucra, which typically limits wagers to around $10, also uses verbiage such as “contests” and “challenges” instead of “bets” or “wagers.”

Social wagering is quickly growing as an industry. Platforms such as Fliff and the newly-launched Rebet aim to take advantage of a market gaming research firm Eilers & Krejcik Gaming estimates is worth $6 billion.

Dave and Buster’s plans to launch its “friendly” wagering service in its D&B Rewards app, which has more than five million users. Members would only be able to bet on arcade games if they are over the age of 18.

Illinois’ legislative session ends on May 24. Didech’s bill was assigned to the Rules Committee and will likely go to his House Gaming Committee before it is voted upon by the House as an entirety.

Didech said he plans to speak with the Illinois Gaming Board, law enforcement, and stakeholders in the gaming and restaurant industry.

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