A group of South Carolina business owners is suing Dave & Buster’s, claiming the company’s arcades violate state gambling laws.
The company operates two South Carolina franchises, in Myrtle Beach and Greenville. The suit was filed by a business group known as SC Citizens For Equal Enforcement of Gambling Laws and alleges that skill-based games that award prizes or money like those at Dave & Buster’s restaurants are illegal under state law.
The group further alleges that state regulators have failed to enforce the law equally against national brands like Dave & Buster’s as compared to smaller businesses in the state.
“South Carolina business owners formed a company to bring attention to the unequal enforcement of the gambling laws against locally owned restaurants and bars,” the group said in a statement.
“SLED (South Carolina Law Enforcement Division) 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.”
Lawsuit Focused On Prize System
Dave & Busters, which is based in Dallas, operates more than 200 restaurants around the US and Canada and also internationally in India, the Philippines, and the Dominican Republic.
The company focuses on an entertainment business model, with video and amusement games generally part of the experience along with nachos, burgers, and cocktails.
The games award tickets to exchange for prizes and that system appears to be at the heart of the lawsuit and gambling allegations. State law bars establishments from offering games in which users deposit coins or tokens to win money or something of greater value, according to WSPA.
Dave & Buster’s sells cards for customers to play games, with the chance to win prizes. The suit comes as state lawmakers have considered legalized gambling in recent years, but those efforts have come up short.
“Despite numerous efforts, the state Legislature has not enacted any statutes that legalize redemption video games, and recent court decisions have ruled that even skill-based video games are illegal to operate if a player is able to win something of value on the outcome,” SC Citizens For Equal Enforcement notes.
“This uncertain legal landscape allows SLED and other agencies to unfairly and selectively enforce these gambling laws. 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.”
Company Previously Introduced Gambling Feature
The group is asking that customers who lost more than $50 at the restaurants to receive refunds. Dave & Buster’s hasn’t commented on the lawsuit.
The company made news in 2024 by offering a new wagering feature on an app that actually allowed players to wager small sums on games like Hot Shots basketball, Skee-Ball, and other arcade games. It’s unknown if that feature was offered in South Carolina.
Gambling expansion in the Palmetto State remains a hot topic, Several candidates for governor recently expressed their views on the issue.
