The present invention relates to a toy gun capable of transmitting a laser beam and/or an infrared (“IR”) beam of light for use in a game. The toy gun also has a detector for detecting a laser and IR signal. A controller within the gun tracks the number of shots fired, the type of light beam fired, the number of hits received by other guns, and permits the user to alternate between firing an IR beam or laser beam. The toy gun also has unique features available through the use of lasers, including detecting the distance to a target. The present invention further relates to an interactive electronic targeting system for use with a toy laser gun. The targeting system includes an electronic multi-colored backlit board with light detecting sensors positioned within the board. The targeting system is programmed with multiple interactive games for use with a toy gun.