Dave And Busters Sued In South Carolina Over Arcade Prize Model

A new South Carolina lawsuit puts Dave And Buster’s arcade prize model under legal pressure, with a newly formed group arguing that ticket redemption games amount to illegal gambling.

Good to Know

• SC Citizens For Equal Enforcement of Gambling Laws filed the case.
• The lawsuit says prizes with resale value make the model gambling under South Carolina law.
• The group seeks treble damages tied to customer losses of $50 or more per visit.

South Carolina Lawsuit Targets Arcade Redemption Games

Dave And Buster’s is facing a lawsuit in South Carolina over its core arcade setup: customers buy Power Card credits, play games, win tickets and redeem those tickets for prizes. The complaint says that becomes illegal gambling when prizes include electronics worth hundreds of dollars.

SC Citizens For Equal Enforcement of Gambling Laws argues that South Carolina law does not depend mainly on skill versus chance. The lawsuit says:

“whether an activity is gaming/gambling is not dependent upon the relative roles of chance and skill, but whether there is money or something of value wagered on the game’s outcome.”

The filing adds:

“Defendant’s redemption gaming machines are precisely the type of machines prohibited by South Carolina law,” the lawsuit said. “Patrons purchase Power Card gaming credits at kiosks for the express purpose of trying to “win” more — in the form of tickets redeemable for valuable prizes — whether by skill or chance.”

The case also points to the business model. According to the lawsuit, Dave And Buster’s keeps nearly 92 cents of every dollar, leaving about 8% returned to players.

The group is seeking treble damages for losses of $50 or more during any single visit. It also cites South Carolina law tied to the old Statute of Anne, which lets gambling losses be recovered and allows a third party to sue if the affected person does not act within three months.

Dave And Buster’s has already tested gaming limits in other ways. In 2024, it partnered with Lucra on Playce It, a peer-to-peer betting feature for arcade games. The company described it by saying:

“How much money is on the line? That’s up to you. Just create or accept a matchup with another player and get ready for some head-to-head action.”

Playce It is listed in Texas, Georgia, Missouri and California, but not South Carolina. Dave And Buster’s relies on skill-based play and the peer-to-peer format in those states.

The plaintiff says enforcement has not been even. In a statement to local news, the group said:

“SLED, and other law enforcement agencies, have seized video games, revoked beer and wine licenses, and have threatened criminal cases against local businesses for operating video games like the ones at the Dave & Buster’s locations in South Carolina … Through this lawsuit, SC Citizens for Equal Enforcement of Gambling Laws LLC hopes to bring clarity and equality to the video game entertainment industry in South Carolina.”

South Carolina has a long record of fights over gambling-style machines. In 2013, the state ended video gambling in bars and restaurants after years of disputes over machines across local venues.