Lawsuit Filed Against Dave And Buster’s in South Carolina Challenging Arcade Prize System

(AsiaGameHub) –   A fresh legal challenge in South Carolina is scrutinizing Dave & Buster’s prize-redemption system, as a newly established organization contends that the arcade’s ticket-based rewards constitute unlawful gambling.

Key Details

• The litigation was initiated by SC Citizens For Equal Enforcement of Gambling Laws.
• The suit alleges that because prizes possess resale value, the business model violates South Carolina gambling statutes.
• The organization is pursuing treble damages for patrons who lost $50 or more during a single visit.

South Carolina Legal Action Challenges Arcade Prize Systems

Dave & Buster’s is the subject of a South Carolina lawsuit concerning its primary arcade operations, where patrons purchase Power Card credits to play games, earn tickets, and exchange them for prizes. The legal complaint asserts that this process qualifies as illegal gambling when the prizes offered include high-value electronics.

The group, SC Citizens For Equal Enforcement of Gambling Laws, maintains that South Carolina law is not primarily concerned with the balance of skill versus luck. The lawsuit states:

“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 further notes:

“Defendant’s redemption gaming machines are precisely the type of machines prohibited by South Carolina law,” the lawsuit claims. “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 legal action also highlights the company’s financial structure, alleging that Dave & Buster’s retains approximately 92 cents of every dollar spent, with only about 8% returned to customers in value.

The plaintiffs are seeking triple damages for any individual losses of $50 or more per visit. Furthermore, the suit invokes South Carolina statutes linked to the historical Statute of Anne, which permits the recovery of gambling losses and allows third parties to initiate litigation if the aggrieved individual fails to do so within a three-month window.

Dave & Buster’s has previously experimented with different gaming formats. In 2024, the company collaborated with Lucra to introduce “Playce It,” a feature allowing peer-to-peer wagering on arcade games. The company marketed the feature by stating:

“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.”

While Playce It is available in states like Texas, Georgia, Missouri, and California, it is not offered in South Carolina, where the company relies on skill-based play rather than the peer-to-peer betting model.

The plaintiffs argue that there is a lack of consistent enforcement. In a statement provided to local media, the group remarked:

“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 history of legal battles regarding gambling-style equipment. In 2013, the state prohibited video gambling in restaurants and bars following prolonged disputes over such machines in local establishments.