Dave and Buster's ventures into the world of betting.
Out of the popular restaurant and entertainment chain, Dave and Buster's (PLAY), is aiming to delve into the betting business.
With the surge in the use of online sports betting apps over the past five years, the organization is keen on tapping this opportunity. However, Dave and Buster's aim to venture into a different type of gambling, the $6 billion social betting sector.
The company has joined forces with lucrative gamification technology company Lucra, allowing its loyal members with over 5 million strong D&B to make small bets, possibly between $5 and $10, on arcade games through their app.
Dave and Buster's boasts a commendable presence with about 222 venues across North America and attracts nearly 50 million unique visitors a year. Over the last 12 months, the company has witnessed a steep increase in its share prices.
The entrance into gambling involves incorporating technology for participants to place wagers on low-stakes social games.
CEO of Lucra, Dylan Robbins, told CNN, "Friendly competition, after all, is a great catalyst to fuel our economy, whether you're playing golf on Sunday with your buddies or pickleball or video games, or even playing cornhole at a tailgate. There are so many ways we can engage in competition with friends and family. I believe gamifying all this offline activity is a massive opportunity. "
Lucra prefers not to use words like "bet" or "wager" when discussing their game features, labeling itself as a skills-based game. The company's leadership contends that these stipulations enable them to bypass the regulations and permitting practices imposed on conventional gambling operators.
Hence, Dave and Buster's could potentially kick-start their new service within a matter of days, the company stated. This move has, nonetheless, been met with skepticism by some avid Dave and Buster's fans.
One user on their subreddit voiced his disapproval, "I don't understand. 'Bet you $5 I can beat you at shooting hoops.' 'Okay, but use the app so that D&B can take a cut.'”
Dave and Buster's has duly kept mum regarding the fees associated with their new service and failed to respond to CNN's inquiries.
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Dave and Buster's is exploring opportunities in the investing sector within the $6 billion social betting market. To accomplish this, they're collaborating with Lucra and integrating their gamification technology, allowing members to make small bets on arcade games.
Due to the company's plans to enter the gambling business, some investors might be interested in buying shares in Dave and Buster's, considering the potential for growth in the social betting sector.
Source: edition.cnn.com
