A legal challenge filed in federal court has placed the operational model of Dave & Buster’s under significant scrutiny in South Carolina. The lawsuit, initiated by an advocacy group known as South Carolina Citizens for Equal Enforcement of Gambling Laws, alleges that the popular arcade and restaurant chain is conducting prohibited activities. The core of the legal argument suggests that the way customers interact with games at the establishment means the company is gambling under the definitions provided by state law. According to the complaint, the business model relies on customers loading money onto a digital Power Card to play…

Last week, we released a video detailing plans for how Dave & Buster’s gambling could become a real thing. The company has plans to roll out peer-to-peer betting through their app for guests in their restaurants who are over 18 years of age. We also speculated that this would run into legal challenges, and we were right. Of course, this was sort of easy to predict so we can’t be too proud of ourselves. The Dave & Buster’s gambling announcement sparked immediate responses from gaming regulators and lawmakers alike, with questions of  legality and concerns of underage betting. The company…