Legal questions on actual Arcade Cabinets not Mame.. lol

[Nitro0602]

Okay... at my workplace we have a large office space that is completely empty... I was thinking of purchasing REAL arcade cabinets like street fighter, NBA Jam... and putting them in the room.  Is it legal for me to do that, as it would have coin operated doors, like a vending machine.. no?
A lot guys at my work are old school gamers so they love the idea, and my boss is completely cool with it!! lol

I guess my question,  can I charge for real arcade cabinets without having any legal issues?

[yotsuya]

I would assume any issues would be from municipal tax codes. No one would probably know unless someone complained.

[Dr. Willy]

dont all games have a setting for free play? or maybe keep a bag of quarters around that everyone can use , and you empty the machine and use the someones over and over?

[SgtSlaughter]

Free play.......pbbbttt.  No shame in profiting off co-workers! 

[JDFan]

That's what they were built for !  So yes it is perfectly legal but you may need to pay a fee for a permit and pay the TAX on any revenue they make (might want to check with your local tax agency to see if they need some type of permit to be used and what the annual fee is for the permit - or just make it free to play if the fee is too high)

[Nitro0602]

I think I will see the legal issues in my jurisdiction then, I know my boss will not want to setup as free-play
He was only thinking of about 2-3 arcade machines.. but still good to find out.

[Generic Eric]

Where do you work that your boss is ok with arcade cabinets, but wants to charge you for playing them? 

[Bender]

 a Pizza joint

When I was a kid I worked at a Pizza place and spent half my income on pizza and arcade games, the owner loved it, he was essentially paying me half.

Good times... good times

[CheffoJeffo]

Tax sticker may make the effort not worthwhile.

And don't forget the insurance ...

[paigeoliver]

I think in 90 percent of America you will find that the hoops you have to jump through to actually operate an arcade game for money will cost far more than the machines can bring in or are even worth, and that is annually.

Nearly every place you go has legacy arcade related laws on the books from the old days back when arcade games meant pinball machines and pinball machines meant illegal gambling. The old "For amusement only" Bingo pinballs only went out of production because they were able to start cranking out "for amusement only" video poker machines that were cheaper and more reliable.

It also didn't help that tons of the old school ops were breaking the law in one way or another. If they weren't running illegal gambling on the side then they were under-reporting income and if they weren't doing that then they were running bootleg games and if they weren't doing that then they probably sold pot under the counter and if they didn't do that then they were probably laundering money (there is a reason why New Jersey had so many arcades).

[JDFan]

Here's a quick breakdown of the Annual Fees in TEXAS :

Coin-Operated Machines Tax :
A tax is imposed on any person engaged in any business dealing with coin-operated amusement machines OR engaged in business to own or operate coin-operated amusement machines exclusively on premises occupied by and in connection with the business.

Rate Details and Other Information
Rates

Registration certificate: $150; occupation tax permit: $60; general business license: $200 for 50 or fewer machines, $400 for 51-200 machines, $500 for 201 or more machines; import license: $500; repair license: $50. [Note: Machine owners can repair their own machines without obtaining a repair license.]

What is a Registration Certificate?
    A registration certificate is a certificate that can be obtained by a person who owns and operates amusement machines only in his or her own place of business; owns no machine subject to the occupation tax imposed by this chapter located on the business premises of another person; and has no financial interest, direct or indirect, in the coin-operated music, skill, or pleasure machines industry, except for the interest he owns in his machines. The annual fee is $150.

So Since you are planning to only use them on the premises of your own business I believe you  would qualify to use a Registration certificate instead of a general business license so would not need to pay that $200 annaul fee and can repair your own machines thus avoiding the $50 Repair license. So the TEXAS permit fee would be about $210 for a single machine and an additional $60 per machine up to 50 machines per year !! (Not including any TAX Liability on any proceeds the machines pull in that would need to be reported as income.)

[paigeoliver]

The business doesn't belong to the original poster so he would indeed need the $200 license. So $410, plus any local fees and taxes as well. If you don't have insurance and anyone decides to sue you over the thing then they will own you and your children.

[JDFan]

The business doesn't belong to the original poster so he would indeed need the $200 license. So $410, plus any local fees and taxes as well. If you don't have insurance and anyone decides to sue you over the thing then they will own you and your children.

You're right -- I was thinking he had said the business owner was putting them there not that he was going to place them there as a business for himself ! and as you mention that is not including any repair\maintenance\liability or running costs for the electricity etc. so it would take quite a few quarters before seeing any profit and all it would take is one person to hit the glass or tip a machine over to quickly make it a losing proposition.