Running an arcade is about much more than plugging in some flashing games and waiting for the quarters to roll in. If you want to turn your family entertainment center or game room into a reliable, profit-generating cash machine, you have to look at the business through a different lens.

In a recent episode of the Attractions Insights Podcast, industry veteran Anthony Martinez, who spent over two decades in operations at Dave and Buster’s and is now with Amusement Source International, shared a masterclass on what separates thriving arcades from those that struggle. The secret is not just about having the latest games; it is about treating your entire operation as a cohesive, well-oiled system.

Here are the core strategies for turning your arcade into a serious revenue generator.

Your Machines Are Employees, Not Decorations

When you walk into an arcade, the flashing lights and sounds create an atmosphere of excitement. But as a business owner, you cannot afford to view your games as mere decorations. Every single machine on your floor is a revenue source.

“They don’t just look pretty and make sounds. They are essentially a cash register. They’re there to provide a certain level of entertainment for a certain period of time, but the money they take in, the revenue it generates, that’s where it becomes a worker.”

Anthony Martinez

This mindset shift changes how you handle maintenance. If a game is broken or waiting on a part, that worker is off the clock. Anthony stresses that you must focus heavily on game uptime and preventative maintenance. When a machine goes down, you are actively losing revenue. Keeping the dust cleared out and checking for frayed wires before a busy weekend can save you thousands of dollars in lost income.

The Power of Redemption

While classic video games, drivers, and shooters are consistent performers, the real money is in redemption games. In modern game rooms, the mix between simulation and redemption is usually around 60-40 or even 70-30, leaning heavily toward redemption.

Why? Because players want to win.

A major driver for redemption games is the prize counter. Having a good mix of low, mid, and high-value prizes keeps guests engaged and encourages repeat play.

“If they go and they put $20 on their game card and they’re a few hundred tickets shy of the prize they want, they’re more apt to go back and put more money on their game card to play again to win those tickets.”

Anthony Martinez

Even if you have limited space and a tight budget, adding a redemption piece is crucial. It gives players a tangible reason to keep swiping their cards and coming back to your venue.

Avoiding “Space Wasters”

Not every shiny new game is a winner. The industry loves hype, but hype does not pay the rent. When evaluating new games, you need to prioritize sustainable performance.

So, what separates a top performer from a space waster? It comes down to simplicity and balance.

Games that are difficult to understand or hard to win tickets on will quickly become dead weight.

“If it’s too hard, if someone makes the settings too hard, people play it once and walk away, and they’ll even tell other people, ‘Hey, you’re not going to win anything there, don’t play that.'”

Anthony Martinez

To maximize revenue, games need to be easy to play and easy to win. You must find the sweet spot in your settings where players feel rewarded, but the business still maintains a profitable payout ratio.

Keep Your Floor Fresh

One of the biggest mistakes new operators make is buying a set of games and expecting them to perform at the same level for five or six years. If you are not actively refreshing your game room, your revenue will eventually decline.

Anthony recommends evaluating your floor every single year. Look at your top ten earners and your bottom ten earners. Cycle out the bottom performers and bring in fresh experiences to keep your regular guests excited.

The “Care and Feeding” of Your Arcade

Location matters, and having the right mix of attractions is important, but the ultimate deciding factor in your success is your operation. People notice the little things. They notice if the bathrooms are clean, if the staff greets them at the door, and if the games are actually working.

When asked for his final piece of advice for operators, Anthony summed it up perfectly:

“Looking at the care and feeding of all of your machines in your game room is probably the biggest advice I would give somebody… the care and feeding of your machines should be number one.”

Anthony Martinez

Turn your arcade into a cash machine by treating your games like workers, prioritizing redemption, keeping your offerings fresh, and delivering an unbeatable guest experience. When you focus on the fundamentals, the profits will follow.

Based on the Attractions Insights Podcast episode featuring Anthony Martinez of Amusement Source International. Watch the full video here.