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Customers play arcade games as we look at Illinois lawmakers pushback on the Dave & Buster's plan to allow gambling on arcade games
Customers play arcade games at Sluggers, a family-owned sports bar in Chicago, Illinois. Photo by Scott Olson/Getty Images via AFP.

Illinois legislators are closely watching the growing interest in arcades in the state incorporating betting into their services. While sports betting sites continue to thrive in Illinois, the arcade’s intentions have caused some controversy.

Legislators in the Illinois sports betting industry are not pleased with the plan proposed by Dave & Buster’s and other arcades. The Illinois House of Representatives gaming committee moved forward with legislation on Thursday that would ban the practice of “facilitating wagering” on arcade games at these establishments.

Dave & Buster’s, with over 200 entertainment and dining locations in North America, seems to have pushed Illinois legislators into action. According to Democratic Rep. Daniel Didech, “The driving force behind this new law was a recent announcement by a well-known family arcade chain that they planned to introduce cash betting on games at their venues nationwide.”

Although the legislation proposed does not explicitly mention Dave & Buster’s, it is clear that lawmakers are targeting the company for their wagering activities.

Dave & Buster’s plan

Dave & Busters is looking to expand its offerings by introducing betting options for its arcade games. The company aims to capitalize on the increasing popularity of legal wagering in the US by allowing customers to place bets on games like Skee-ball. While Illinois sports betting apps cater to those interested in traditional sports betting, Dave & Busters is looking to attract a new audience interested in arcade-style wagering.

This would mark the first instance of arcade gaming being associated with gambling.

Dave & Buster’s loyalty program members were getting ready to enhance their experience with the restaurant/arcade brand by introducing a real money wagering feature. This would include popular games like Skeeball and would also offer a rewards program for users. The concept differs from traditional real money online casinos.

The plan against it

Dave & Busters’ plan was disrupted by the Illinois House of Representatives last week with a legislative push to stop “facilitating wagering” on the company’s gaming options. The language of the bill also applies to any other “family amusement establishment” in the state looking to capitalize on similar opportunities.

The bill would encompass any game necessitating the use of a coin or token for activation.

Representative Daniel Didech explained the concerns regarding arcade-style gambling by expressing his belief that the proposed activity does not align with responsible gambling practices in Illinois.

Circumventing current laws?

Illinois sports betting app licensing requirements are strict, but Dave & Buster’s appears to be circumventing these rules and avoiding the necessary licensing for all legal gambling establishments in the state.

Rather than just relying on news reports, Rep. Didech took matters into his own hands by downloading the app and uncovering potential legal violations related to Dave & Buster’s new gambling feature.

Before placing his first bet, Didech was required to confirm that he was over 18 years old during the sign-up process, but no verification was requested. In Illinois, the legal gambling age is 21, and licensed providers must verify a user’s age through identification.

While using the app, Didech had the chance to place a prop bet on an NBA player. However, it is important to note that engaging in such activities with an unlicensed and unregulated sports betting provider is illegal. For those interested in betting on professional sports, there are numerous promotions offered by Illinois sportsbooks.

For now…

Illinois lawmakers have shown strong support for legislation targeting arcade-style gambling. An amendment to House Bill 394 was approved by a unanimous 15-0 vote in the House.

The bill HB 394 is commonly referred to as the “Family Amusement Wagering Prohibition Act,” with the main goal of banning arcade-style gambling in the state, except for Golden Tee and pool tournaments held at local establishments.

Representative Didech stated that the goal is to create a broad definition to prevent people from exploiting loopholes. The legislation aims to address how individuals can engage in certain activities on their property without technically breaking the law. The definitions and prohibitions are being carefully crafted with this intention in mind.

It is probable that we will continue to hear about this issue in the future. Dave & Buster’s may test current laws in other states to find a legal loophole. Policymakers in Pennsylvania and Ohio are also monitoring similar issues in the sports betting industry.

Exploring the limits of legal sports betting is expected to persist in various ways. However, as demonstrated by lawmakers in Illinois and other legal gambling regions, efforts to circumvent regulations will not be overlooked.