Arcade giant Dave & Buster’s takes its games to a new level by offering social betting on its app.
Customers can soon place a $5 friendly bet on a Hot Shots basketball game, a bet on a Skee-Ball contest or another arcade game. The betting feature, which is expected to launch in the coming months, will work through the company’s app.
Started in 1982, Dave & Buster’s now has more than 222 locations in North America, offering everything from bowling to laser tag, as well as virtual reality. The company says it has five million loyalty members and 30 million unique visitors to its sites each year. The company’s stock is up more than 50% in the past year.
As the boom in betting increases engagement among sports fans, digital gamification could have a similar effect on Dave & Buster’s customer base, allowing loyalty members to compete against each other and earn rewards. Ultimately, it could mean that people spend more time and money in the spaces.
Dave and Buster’s uses technology from gaming software company Lucra.
A general view of the atmosphere during The SDI Takeover @ Dave & Buster’s in Los Angeles on June 23, 2022
Tiffany Rose | Getty Images
“We are thrilled to partner with Lucra to bring this exciting new gaming platform to our customers,” said Simon Murray, senior vice president of entertainment and attractions at Dave & Buster’s. “This new partnership provides our dedicated members with real-time, unrivaled gaming experiences and reinforces our commitment to continue to improve our customers’ experience through innovative, cutting-edge technology.”
Lucra and Dave & Buster’s said there will be a limit on the size of bets it will allow, but that they are not yet publicly disclosing that limit. Lucra said that throughout its history the average bet size has been $10.
Lucra, created in 2019 by then-Stanford Graduate School of Business classmates Dylan Robbins and Michael Madding, is a software platform that allows users to compete for real money in friendly competitions. Robbins and Madding previously worked together at Goldman Sachs.
“Lucra helps our partners increase user adoption, increase retention and engagement, and add new revenue streams to their business,” said Robbins, CEO of Lucra.
Robbins and Madding saw the incredible growth of legal sports betting, but sought to capitalize on peer-to-peer recreational betting. The company has raised about $14 million with investors that include billionaire investor Marc Lasry, former and current professional athletes John Isner and Julie and Zach Ertz, along with Raptor Group and SeventySix Capital.
“We’re creating a new form of digital experience for people within these ecosystems,” said Madding, Lucra’s chief operating officer. “We’re getting them engaged in a new way and spending more time and money,” he added.
Lucra says its skill-based games are not subject to the same licenses and regulations that gaming operators face with games of chance. Lucra is careful not to use the term “betting” or “betting” to describe its games.
“We use real money contests or challenges,” Madding said.
Lucra’s contests are only available to players 18 years of age or older. Contests are available in 44 states.
The social betting category is a $6 billion industry, according to gaming research firm Eilers & Krejcik. Several companies such as Fliff and ReBet have emerged, hoping to emulate the success of the gaming industry and capture a younger market.
Lucra recently signed an agreement with Duprthe pickleball rating system and TennisOne, a tennis app, that allows players to compete against each other for real money. Lucra’s app has been downloaded 150,000 times, facilitated more than one million unique contests on the platform, and raised more than $20 million in handle, according to the company.
“Whether you’re playing pickleball with your friends or golfing on the weekend, we’re helping to enhance and digitize that experience with our partners,” said Robbins.