Published on: April 22, 2026, 08:17h.
Updated on: April 22, 2026, 08:17h.
- Dave & Buster’s faces allegations of operating illegal gambling activities in South Carolina
- The lawsuit claims that skill and redemption games are forbidden in the Palmetto State
- Dave & Buster’s generates over $1.3 billion annually from game credits
Dave & Buster’s is currently embroiled in a lawsuit in South Carolina, accused of managing an illegal gambling operation.
A coalition of business owners has filed a legal complaint, under the name SC Citizens for Equal Enforcement of Gambling Laws, alleging that Dave & Buster’s Entertainment, Inc., is operating “illegal redemption gaming machines” across its three South Carolina locations.
“The defendant’s redemption gaming machines allow customers to pay for the chance to win more by engaging in games of skill or luck. Prizes redeemable at the defendant’s locations include valuable electronics and goods. This ‘chance to win’ legally classifies as gambling in South Carolina, making the defendant the ‘winner’ from the gambling losses of patrons,” states the federal lawsuit.
This lawsuit has been submitted to the US District Court in Florence, South Carolina.
Gambling Regulations in South Carolina
South Carolina is one of just four states that strictly forbids casinos, sports betting, online gaming, racetracks, parimutuel betting, and charitable gambling. Currently, the state-operated lottery remains the only permissible form of gambling.
Skill games are also outlawed in the state. SC Citizens for Equal Enforcement of Gambling Laws asserts that the South Carolina Law Enforcement Division (SLED) has inconsistently enforced the law regarding skill games, conducting raids on specific establishments while allowing Dave & Buster’s to operate in a manner resembling a casino, where players buy gameplay credits akin to casino chips.
In its annual report for the fiscal year 2024, D&B reported a gross margin of roughly 91.5% from its entertainment offerings. Players spent nearly $1.4 billion on D&B games that year, while prizes and operational costs totaled $118.6 million, resulting in a net profit of $1.27 billion across its 232 locations.
The majority of the company’s income is derived from its gaming experiences, making the arcade segment the most profitable aspect of Dave & Buster’s.
The lawsuit specifically mentions two slot-style games referred to as “Spin-N-Win Wheel” and “Spin Out,” where players wager gameplay for an opportunity to win additional plays. Numerous other games reportedly have bonus ticket rounds and jackpot features.
According to the lawsuit, players can redeem their winnings for high-value items, including an Apple iPad Air, a Sony PlayStation, an Xbox, or a Brookstone robotic vacuum.
SC Citizens for Equal Enforcement of Gambling Laws is pursuing a claim for tripling the entertainment losses of all patrons exceeding $50 in a single visit. The group is also asking for reasonable attorney fees, half of the total damages awarded to the affected consumer class, and a declaration asserting that Dave & Buster’s is engaged in illegal gambling under South Carolina statutes.
To date, Dave & Buster’s has not issued a response to the allegations outlined in the complaint.
Previous Controversies Surrounding D&B
This isn’t the first incident where the games at Dave & Buster’s have garnered criticism.
In 2024, Casino.org reported that the company received warnings from state gaming regulators after revealing a feature within its app allowing users aged 18 and older to place small bets against friends on certain skill games like skee-ball, basketball, and air hockey.
While peer-to-peer betting on the D&B Rewards app remains active in most states, it is expressly forbidden in Ohio, Pennsylvania, Illinois, and Nevada, where regulators advised the company that this feature could violate local gaming laws.