An interactive target game system for one or more players includes at least one designator, in the form of a pistol, holdable by a player for aiming at a target and operating to simulate shooting at the target. The designator includes a photodetector for detecting an electromagnetic beam when the designator is accurately aimed at a beam source. Also included is at least one target viewable by the player for periodically producing an electromagnetic beam which is directed outwardly of the target. During those times that the target is producing the beam, a visible light signal is produced to alert the player that the target is "active". When the designator is accurately aimed at the target and operated to detect an electromagnetic beam, a visual and/or audible signal is produced by the designator to indicate that a "hit" has occurred. The designator also includes circuitry for developing an electromagnetic beam for transmission in the direction aimed to simulate shooting at targets worn by other players, at beam detectors corresponding to gambling choices which a player may wish to make, or at beam detectors associated with different products which a player may wish to purchase.