Arcade Giant Dave & Buster’s takes its games to a new level by offering social betting on its app.
Customers will soon be able to place a friendly $5 bet on a Hot Shots basketball game, a bet on a Skee-Ball competition or another arcade game. The betting feature, which is expected to launch in the coming months, will work through the company’s app.
Dave & Buster’s, founded in 1982, now has more than 222 locations across North America, offering everything from bowling to laser tag to virtual reality. The company claims to have five million loyal members and 30 million unique visitors to its sites each year. The company’s shares are up more than 50% over the past year.
As the rise of betting increases engagement among sports fans, digital gamification could have a similar effect within Dave & Buster’s customer base by allowing loyal members to compete with each other and win rewards. Ultimately, this could mean people will spend more time and money on the sites.
Dave and Buster use technology from gamification 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 excited to work 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 loyal members with unparalleled real-time gaming experiences and reinforces our commitment to continuing to improve our customer experience through innovative and cutting-edge technology.”
Lucra, created in 2019 by Dylan Robbins and Michael Madding, then classmates at the Stanford Graduate School of Business, 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 drive user adoption, increase retention and engagement, and add new monetization streams to their business,” said Robbins, CEO of Lucra.
Robbins and Madding saw the incredible growth in legal sports betting, but sought to capitalize on recreational betting taking place between peers. The company has raised approximately $14 million from investors including billionaire investor Marc Lasry, former and current professional athletes John Isner, Julie and Zach Ertz, as well as Raptor Group and SeventySix Capital.
“We’re creating a new form of digital experience for people in these ecosystems,” said Madding, Lucra’s chief operating officer. “We’re getting them to engage in new ways and spend more time and money,” he added.
Lucra claims that its skill-based games are not subject to the same licensing and regulations that gambling operators face when it comes to gambling. Lucra is careful not to use the term “bet” or “gambling” to describe its games.
“We use real money contests or challenges,” Madding said.
Lucra contests are only available to players aged 18 and over. 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 sprung up, hoping to emulate the success of the gaming industry and capture a younger market.
Lucra recently signed a deal with Dupr, the pickleball scoring system, and TennisOne, a tennis app, to allow players to compete against each other for real money. Lucra’s app has been downloaded 150,000 times, facilitated more than a million unique contests on the platform and raised more than $20 million, according to the company.
“Whether you’re playing pickleball with your friends or golfing on the weekend, we’re helping to amplify that and digitize that experience with our partners,” Robbins said.
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