Arcade chain Dave and Buster's plan to allow customer betting isn't winning over everyone.

Software company Lucra Sports announced on Tuesday that it was working with the entertainment chain to allow customers to place wagers on their arcade games through the Dave & Buster's app.

But some lawmakers are calling foul.

Illinois State Rep. Daniel Didech, a Democrat from Buffalo Grove, filed a bill on Thursday that's designed to prohibit family amusement establishments from facilitating wagering on amusement games. He is also looking to criminalize the activity by amending the Illinois Criminal Code. His bill has bipartisan support and is backed by more than two dozen other state lawmakers.

"It is inappropriate for family-friendly arcades to facilitate unregulated gambling on their premises. These businesses simply do not have the ability to oversee gambling activity in a safe and responsible manner," Didech said in a statement.

Didech, who also serves as chairman of the Illinois House Gaming Committee, said he will be advancing the legislation this session to clarify that such conduct is illegal under Illinois law.

Didech told CNBC that he sees many issues with the idea, ranging from the lack of protections for problem gamblers to exposing younger people to gambling. He said that while Illinois requires people to be 21 and older to gamble, Lucra's service is for people 18 and up.

"None of those protections are in place at Dave & Buster's locations. They haven't even remotely done their due diligence," Didech said.