How Much Does It Cost to Start a Arcade? (2026)
One-time startup cost
$120,500 – $548,000
Monthly burn
$3,450 – $16,250
Market size (national)
US establishments
3,392
People employed
61,452
Annual payroll
$1.5B
Avg payroll / location
$439K
The U.S. Census County Business Patterns 2022 shows 3,392 establishments in the 'Amusement arcades' industry (NAICS 713120), employing 61,452 people, with a $1.5B total annual payroll. This indicates a mature, but fragmented, industry with many smaller operators averaging substantial payroll costs per establishment ($439,011/year), suggesting significant operational expenses or multiple employees per location.
Source: U.S. Census County Business Patterns 2022 · Amusement arcades (NAICS 713120)
Itemized cost breakdown
| Item | One-time | Monthly |
|---|---|---|
| Arcade Game Machines (New and Refurbished) | $50,000 – $250,000 | — |
| Leasehold Improvements (electrical, flooring, themed decor) | $30,000 – $150,000 | — |
| Commercial Lease Deposit & First Month | $5,000 – $25,000 | $2,500 – $12,500 |
| Gaming Licenses and Business Permits | $1,000 – $5,000 | — |
| General Liability and Property Insurance | $1,500 – $5,000 | $150 – $400 |
| Point-of-Sale (POS) System & Card Readers | $1,000 – $5,000 | $50 – $150 |
| Initial Prize Inventory & Small Merchandise | $2,000 – $10,000 | $500 – $2,000 |
| Marketing Launch (local ads, grand opening, social media) | $3,000 – $15,000 | $200 – $1,000 |
| Working Capital / Reserve (3-6 months operating expenses) | $25,000 – $75,000 | — |
| Security System & Surveillance Equipment | $2,000 – $8,000 | $50 – $200 |
6-month runway
$141,200 – $645,500
Startup cost plus six months of burn — a rough floor for how much cash to have in hand before you open, since most businesses aren’t profitable from day one.
How to lower these costs
- Arcade Game Machines (New and Refurbished) is one of the largest one-time costs ($50,000 – $250,000) — look for used or leased equipment, a smaller initial order, or a phased buildout to shrink the upfront check.
- Leasehold Improvements (electrical, flooring, themed decor) is one of the largest one-time costs ($30,000 – $150,000) — look for used or leased equipment, a smaller initial order, or a phased buildout to shrink the upfront check.
- Commercial Lease Deposit & First Month runs $2,500 – $12,500/month — negotiate the rate up front, shop multiple vendors, or delay this line item until revenue can cover it.
- Initial Prize Inventory & Small Merchandise runs $500 – $2,000/month — negotiate the rate up front, shop multiple vendors, or delay this line item until revenue can cover it.
Customize these numbers →
Edit line items for your exact plan with the free startup cost calculator.
But is it profitable? →
See margins, demand, and competition for a arcade.
Frequently asked questions
What is the total estimated startup cost for an arcade business?
The total startup cost for an arcade business can range significantly, typically from $100,000 to $500,000 or more, largely depending on the scale, location, and the quality and quantity of arcade machines purchased.
What is the cheapest way to start an arcade business?
The cheapest way to start might involve leasing a smaller space, acquiring a limited number of well-chosen refurbished classic games, and focusing on a specific niche or pop-up model initially, with minimal build-out.
What are common financing options for an arcade?
Common financing options include traditional bank loans, SBA loans, equipment financing specific to arcade games, and potentially crowdfunding or private investment for larger ventures.
What are the most significant ongoing costs for an arcade?
The most significant ongoing costs include rent, utilities (especially electricity for games), payroll for staff, ongoing game maintenance and repair, prize inventory replenishment, and marketing expenses.
Are there any hidden costs involved in running an arcade?
Hidden costs can include unexpected game repair bills, software licensing fees for certain games, frequent security system upgrades, high insurance premiums due to public liability, and the cost of keeping prize inventory fresh and appealing.
National establishment, employment and payroll counts are real figures from the U.S. Census County Business Patterns dataset. Cost and margin figures are informed estimates drawn from public industry sources (trade associations, government labor/business statistics, industry reports) combined with real Google Ads search-demand data. They are directional, not audited — actual costs and margins vary by market and operator. Updated July 2026.
Founder of IdeaCrystal. Previously founder & CTO of Geonode and Repocket.
Connect on LinkedIn →These are directional ranges, not your specific numbers. IdeaCrystal checks real demand and competition for your idea before you commit this kind of capital.
Get a free signal scan of your idea →