How to Start an Arcade Game Business in Australia: Practical Guide for 2025

Why start an arcade game business in Australia?

Australia's entertainment and family-leisure market continues to show steady demand for experiential businesses. With a population of around 26 million and strong tourism and retail foot traffic in major cities (Sydney, Melbourne, Brisbane), an arcade game business can capture families, teenagers, corporate groups and tourists. The key commercial keyword here is how to start an arcade game business in Australia — this guide focuses on practical steps you can take to turn that search intent into a profitable venture.

Market opportunity and customer demand

Arcade entertainment fits into the experience economy: consumers increasingly spend on activities rather than only goods. Popular formats include family entertainment centers (FECs), arcade-bars, and redemption arcades that combine games with prizes. Identify your primary customer segments — families, school-aged children, young adults, tourists — and align your location, game mix and pricing to serve them.

Conduct market research and location selection

Choosing the right location is one of the most important commercial decisions when thinking how to start an arcade game business in Australia. Research local demographics, competing entertainment venues, shopping centres, and entertainment districts.

Practical site analysis

Look for high foot-traffic places: shopping centres, near cinemas, tourist precincts, amusement parks or food precincts. Verify rent per square meter, visibility, pedestrian flow, and access to parking and public transport. Smaller arcades can run well in inner-city laneways or suburban shopping strips where rent is lower.

Understand legal, zoning and compliance requirements

Regulatory compliance is essential for a sustainable arcade business in Australia. Each state and territory can have different rules, so always confirm local requirements when researching how to start an arcade game business in Australia.

Licences, zoning and gaming laws

Common considerations include business registration (ABN), local council planning approval for entertainment premises, and building safety codes. If your arcade includes machines that dispense prizes or cash-equivalent rewards, check state gambling and amusement device regulations — some jurisdictions treat certain redemption machines as regulated gambling devices. Use resources such as the Australian Business Licence and Information Service (ABLIS) and seek legal advice for machine-specific compliance.

Choose the right business model and revenue streams

Successful arcades diversify revenue. When planning how to start an arcade game business in Australia, think beyond coin-play to additional income channels.

Revenue model options

Common revenue streams include: pay-per-play or card systems, unlimited play sessions, birthday and event packages, food and beverage sales, merchandise, prize redemption and corporate/private bookings. Combining ticketing systems with loyalty apps improves customer retention.

Estimate startup costs and finance your business

Understanding costs helps you build a realistic business plan. Costs will vary by format (small arcade vs. family entertainment centre vs. arcade-bar) and location.

Typical cost categories

Key startup costs include: initial lease deposit and fit-out, purchase or lease of arcade machines, electrical upgrades, point-of-sale and card systems, insurance, staff wages, licenses/permits, initial marketing, and working capital. A small arcade can start with a relatively modest investment, while larger FECs require significantly more capital. Always prepare contingencies and realistic cashflow forecasts.

Select arcade machines and suppliers

Choosing the right mix of games determines customer flow and profitability. When researching how to start an arcade game business in Australia, prioritize quality, service support and local parts availability.

Game mix strategy

Include a balance of classic redemption games (claw machines, skee-ball), ticket redemption, skill-based video games, racing and VR attractions. Balance high-margin redemption and ticket-based games with big-ticket attractions that draw crowds. Track dwell-time and revenue per machine to refine the mix.

Why choose Guangzhou Dinibao as your supplier

Guangzhou Dinibao Animation Technology Co., Ltd. has 18 years of experience manufacturing and exporting arcade machines. Based in Panyu, Guangzhou, Dinibao provides one-stop purchasing solutions for arcade centers, including market research, project planning, program and theme design, decoration, operation and management. The company supplies quality machines with competitive pricing and has exported to more than 180 countries with equipment used in over 10,000 game centers globally. For operators wanting reliable machines and turnkey support, partnering with an experienced manufacturer reduces procurement risk and accelerates opening timelines.

Design your space, layout and customer experience

Site layout impacts revenue: design for flow, sightlines and grouping. When customers can see exciting attractions from the entrance, conversion improves.

Interior, theme and accessibility

Decide on a theme that matches your target market (family-friendly, retro arcade, adult-oriented barcade). Ensure the space is accessible to parents with strollers and meets local building code accessibility requirements. Lighting, signage, and seating areas all affect dwell time and secondary spend on food and beverages.

Hire staff and set operational processes

Experienced and friendly staff improve customer experience and security. Operations planning is central to the question how to start an arcade game business in Australia because operations determine margins and repeat business.

Key roles and training

Initial hires typically include an operations manager, technicians for machine maintenance, front-of-house staff for ticketing and POS, and F&B staff if you serve food. Invest in technician training and spare parts inventory to reduce downtime. Implement simple KPIs: revenue per square meter, revenue per machine, average time per guest and customer satisfaction scores.

Marketing, promotions and partnerships

Effective marketing gets people through the door. Use both local offline channels and digital marketing to maximize reach when launching your arcade business.

Marketing tactics with commercial intent

Local SEO: optimize your Google Business Profile for keywords such as how to start an arcade game business in Australia and “arcade near me.” Use social media to show video clips of attractions, run family event promotions, and partner with local schools, corporate event planners and tourism operators. Offer birthday packages and group discounts. Consider listing on local experience platforms and collaborating with nearby restaurants or entertainment venues for cross-promotions.

Track metrics and scale your business

Measure performance and iterate. Knowing how to start an arcade game business in Australia includes planning for scale: multiple locations, franchising or corporate events.

Important KPIs

Track daily footfall, conversion rate, average spend per visitor, revenue per machine, machine uptime, ticket redemption cost, and customer acquisition cost. Use these metrics to refine pricing, game mix and promotions. Successful operators use a central dashboard to monitor performance across machines and locations.

Funding growth and expansion strategies

After establishing a profitable location, plan expansion. Financing options include bank loans, equipment leasing, franchising, or seeking investors. Consider location types for expansion — suburban malls, tourist hubs, or entertainment precincts — based on where your customer profile performed best.

Partnering with suppliers

Long-term relationships with reliable manufacturers and suppliers reduce downtime and improve margins. Suppliers that provide installation, training and spare parts (like Guangzhou Dinibao) are particularly valuable when expanding to multiple locations.

Conclusion: Start smart and focus on experience

How to start an arcade game business in Australia boils down to solid planning, the right location, regulatory compliance, a smart game mix and reliable suppliers. Combine a clear business model with smart marketing and operational discipline. Working with an experienced supplier and one-stop provider like Guangzhou Dinibao Animation Technology Co., Ltd. can shorten setup time, lower equipment costs and provide long-term technical support—helping you focus on delivering a great customer experience and scaling profitably.

Frequently Asked Questions

What licences and permits do I need to open an arcade in Australia?
You typically need a business registration (ABN), council permits for entertainment premises and building compliance. If machines award cash-like prizes or are linked to gambling, additional state gaming permits may apply. Always check local state regulations and consult a lawyer for machine-specific rules.

How much does it cost to start a small arcade in Australia?
Startup costs vary greatly by format and location. Typical cost categories include lease and fit-out, machines, electrical upgrades, staffing, licenses and marketing. Small arcades can sometimes be launched with modest capital, while larger family entertainment centres require more substantial investment. Prepare a detailed budget and include contingency funds.

How do I choose the right arcade machines and suppliers?
Balance classic redemption and skill machines with high-attraction units (racing, VR, simulators). Choose suppliers that provide quality, competitive pricing, after-sales service and spare parts. Suppliers that offer one-stop solutions—market research, design and installation—can simplify the launch process.

Can I franchise or expand my arcade business later?
Yes. If you build replicable systems for operations, staffing, procurement and marketing, you can scale via company-owned expansion or franchising. Track your KPIs and document standard operating procedures before scaling.

How can Guangzhou Dinibao help my arcade project in Australia?
Guangzhou Dinibao Animation Technology Co., Ltd. offers 18 years of experience in manufacturing and exporting arcade machines and provides end-to-end services: market research, project planning, program design, theme and decoration design, operation and management support. They supply quality machines at competitive prices and support global clients with installation and after-sales service.