How to Start an Arcade Game Business in Cuba: Practical Step-by-Step Guide

How to Start an Arcade Game Business in Cuba: Overview and Opportunity

Why consider an arcade business in Cuba

Starting an arcade game business in Cuba can be attractive because of growing tourism, renewed private-sector opportunities, and rising demand for family entertainment and leisure venues. If you target tourists in Havana and other resort areas while also serving local families and young people, you can create multiple revenue streams. The keyword how to start an arcade game business in Cuba reflects a clear commercial intent: investors want actionable, regulatory, and operational guidance to launch and scale successfully.

Understand the Cuban Market and Legal Environment

Market demand and customer segments

Before anything else, define your customer segments: tourists, families, teens, and corporate or event clients. Tourist-heavy neighborhoods near Old Havana, Miramar, Vedado, and Varadero typically have higher foot traffic and spending power. Domestic demand is aided by Cuba’s expanding private sector and interest in safe, social entertainment spaces. Research local footfall, hotel guest volumes, and competitor locations to estimate daily visitors and per-person spending.

Legal framework and business registration

Cuba’s business environment blends state control with growing private entrepreneurship. For small arcades aimed at local customers, registering as a self-employed operator (cuentapropista) or a cooperative may be viable. Larger projects or foreign investment usually require a joint venture or contract with a state entity under Cuba’s foreign investment rules. Always consult local legal counsel or a business consultant to determine whether you require municipal authorizations, tax registration with the National Tax Administration Office (ONAT), municipal licensing, or approvals from ministries related to tourism or culture.

Currency, payments and pricing strategy

Cuba undertook monetary unification in 2021 and now operates primarily in Cuban pesos (CUP). The official exchange rate used by state entities is roughly 24 CUP to 1 USD, though market and tourist rates can fluctuate. Design your pricing and payment systems to accept cash in CUP and, where feasible, electronic payments popular locally (for example, Transfermóvil and EnZona) and tourist-friendly payment methods. Consider multi-currency pricing for tourists and local pricing strategies to maximize occupancy and repeat visits.

Risks: sanctions, imports and compliance

Be aware of geopolitical constraints: the U.S. embargo on Cuba affects trade relationships with U.S. entities, but many suppliers from Asia and Europe operate in Cuba. For compliance and risk mitigation, document all contracts and customs paperwork, ensure export compliance with your suppliers, and secure local legal and tax advice. Insurance options exist in Cuba but coverage specifics differ; obtain clear written statements from insurers before launch.

Create a Winning Business Plan for a Cuban Arcade

Concept, theme and value proposition

Define a clear arcade concept: family entertainment center, classic arcade, redemption/prize arcade, VR/modern gaming lounge, or hybrid with F&B. Your theme and game mix determine average spend per visitor. For instance, redemption arcades that combine prizes and family-friendly games typically encourage longer stays and higher per-visit revenue than single-play spaces. Use market research to pick a concept that matches neighborhood demographics and tourist profiles.

Revenue model and pricing options

Common revenue streams include pay-per-play tokens or card systems, time-based access, event rentals (birthday parties, corporate events), refreshment sales, and prize/redemption revenue. Consider installing a cashless card system to ease operations—cards can be loaded with credit per currency. Estimate average revenue per user (ARPU) under conservative and optimistic scenarios during your financial planning.

Start-up costs and financial projections

Startup costs vary widely depending on scale. Typical ranges are: a small 50–100 m² arcade (basic machines, minimal decor) might start at approximately $15,000–$40,000; a medium arcade (100–300 m², mix of machines, prizes, modest F&B) $50,000–$150,000; a larger entertainment center (300+m², VR, redemption, F&B, themed fit-out) can exceed $200,000. These ranges include equipment, shipping, customs fees, interior fit-out, initial staff payroll, and working capital. Expect payback periods of 12–36 months depending on location, pricing, and tourist seasonality.

Location selection and site economics

Choose a location close to hotels, tourist routes, cinemas, or shopping centers. In cities like Havana, high-visibility streets and mall spaces increase rent but also foot traffic and spend. Negotiate lease terms that allow initial rent concessions or a step-up schedule while you build customer awareness. Consider backup power supply and Internet connectivity when evaluating sites, since reliable electricity and connectivity are critical for modern arcade systems and card payment terminals.

Importing Equipment and Choosing Suppliers

Choosing arcade machines: types and ROI

Select a balanced mix of arcade cabinets (racing, shooting, redemption), prize games, and newer attractions like VR or motion simulators. Redemption/prize games often yield steady revenue because visitors stay longer. Prioritize durable machines with low downtime and readily available spare parts—this will reduce operating costs and increase uptime, improving overall return on investment (ROI).

Work with experienced suppliers and turnkey providers

Partner with a supplier that understands international shipping, customs, and after-sales service. Guangzhou Dinibao Animation Technology Co., Ltd. has 18 years of experience manufacturing and exporting game machines and offers one-stop purchasing solutions, including market research, project analysis, planning, design, decoration, operation, and management. Working with a full-service supplier simplifies importing, ensures compatibility with local power and network conditions, and speeds up installation and training.

Shipping, customs, and import documentation

Plan for customs clearance delays and duties. Prepare detailed invoices, certificates of origin, packing lists, and technical specifications for customs officials. Use freight forwarders experienced with Cuba to navigate port procedures and local regulations. Factor port handling, inland transport, customs duties, and local taxes into your total landed cost to avoid surprises.

Maintenance, spare parts and technical support

Negotiate service agreements that include spare parts kits, remote troubleshooting, and technician training. Machines from established manufacturers typically come with recommended preventive maintenance schedules—adhere to them to prolong machine life and reduce downtime. Keep an inventory of fast-moving spare parts and training manuals in Spanish to speed repairs and reduce service costs.

Operations, Staffing and Marketing

Day-to-day operations and staffing

Hire staff who are customer-focused and technically competent for basic troubleshooting. Train employees on customer service, machine operation, prize management, cash handling, and safety procedures. Depending on operating hours, plan for shifts to cover weekends and peak tourist times. Maintain clear SOPs (standard operating procedures) for opening, closing, cash reconciliation, and equipment fault reporting.

Marketing strategies with commercial intent

Drive visits through a mix of digital and local marketing. Partner with hotels, tour operators, and travel agencies to offer bundled experiences or discounts to guests. Use social media channels, targeted paid advertising, and Google Business Profile (if applicable) to show hours, location, and popular attractions. Seasonal promotions, tournaments, and themed events attract repeat customers and create word-of-mouth buzz.

Payment handling and cash security

Implement robust cash controls, a reliable POS, and reconciliation processes. If you use card-based or RFID systems, secure APIs and local network stability are essential. For tourist-heavy locations, accept multiple payment methods and consider currency conversion clearly visible to customers. Install secure storage for cash and set protocols for safe daily deposits or armored transport if available.

Safety, electricity and IT infrastructure

Ensure compliance with fire and public safety regulations. Install surge protectors, UPS units for sensitive electronics, and backup power for key systems. Verify local electrical standards and prepare converters or transformers if needed. For cloud-based prize and card systems, ensure stable Internet or local server redundancy to avoid disruption.

Scaling, Partnerships and Long-term Growth

Scaling models: chain, franchise or local partnerships

After establishing a successful location, expand through company-owned branches, franchising, or partnerships with local entrepreneurs. Franchising can accelerate growth with lower capital needs but requires mature operational manuals, training programs, and brand standards. Alternatively, partner with local entertainment centers, malls, or hotel chains to create in-house arcades or seasonal pop-ups.

Local partnerships and community engagement

Engage the community through school events, youth tournaments, and charity drives. Local partnerships strengthen brand recognition and can reduce marketing costs. For tourist venues, build relationships with tour operators, concierge desks, and travel influencers to maintain consistent guest flows.

Risk Management and Compliance

Insurance, liability and worker safety

Purchase property, liability, and business interruption insurance where available. Verify coverage limitations for imported equipment and international suppliers. Implement documented safety inspections and employee training to minimize accidents and liability exposure.

Political, economic and currency risks

Factor in seasonality, currency volatility, and changes in tourism. Maintain cash reserves and flexible cost structures to manage off-peak months. Regularly review contracts, especially in foreign investment situations, and maintain strong local legal counsel to navigate regulatory changes.

Launch Timeline and Practical Checklist

Typical 3–9 month launch timeline

Month 1–2: Market research, concept selection, legal consultations and initial permits. Month 2–4: Secure location, finalize lease, design layout and order equipment. Month 3–6: Shipping, customs clearance, fit-out, staff recruitment and training. Month 6–8: Systems testing, soft opening and marketing ramp-up. Month 9: Grand opening and optimization. Timelines will vary by scale, customs speed and permitting.

Essential pre-launch checklist

Key items: validated business plan and financials, local legal registration, signed lease, import permits and customs documentation, supplier agreements with spare parts and service terms, staff hiring and training, POS/payment systems, marketing plan, safety inspections, and insurance coverage. Prepare contingency plans for delayed shipments or slower-than-expected footfall during the first months.

Conclusion: Practical Next Steps to Launch

Start small, validate quickly, then scale

Begin with a pilot location or a pop-up to validate demand, pricing, and operational workflows before committing to a large, long-term lease. Use data from daily revenue, machine uptime, and customer feedback to iterate on game mix and marketing. Partnering with an experienced supplier and turnkey provider—such as Guangzhou Dinibao Animation Technology Co., Ltd.—can shorten your time-to-market, reduce import hassles, and provide ongoing technical support. With careful planning, local partnerships, and strong operations, launching an arcade game business in Cuba can be a viable and profitable endeavor.

Frequently Asked Questions

Q: Do foreigners own arcade businesses in Cuba?
A: Foreigners can participate through joint ventures or investment contracts with state entities for larger projects. Small-scale operations geared to local markets may be run as private entrepreneurs or cooperatives. Consult local legal counsel to identify the optimal structure for your investment.

Q: How much does it typically cost to start a small arcade in Cuba?
A: Startup costs vary widely; a small arcade could cost roughly $15,000–$40,000, a medium arcade $50,000–$150,000, and larger centers more than $200,000. These are approximate ranges and should be validated with local quotes, shipping, customs, and fit-out costs.

Q: What permits are required to open an arcade in Cuba?
A: Permitting differs by project size. Small private businesses require municipal registration and tax filings; larger ventures may require sector approvals and foreign investment agreements. Obtain guidance from a local attorney or consultant to secure the correct licenses and permits.

Q: What payment methods should I support in my Cuban arcade?
A: Support cash in CUP and, where possible, local electronic payment systems (e.g., Transfermóvil) and tourist-friendly options. Card or RFID systems can improve convenience but require stable network and local payment integration.

Q: How do I handle importing machines and parts?
A: Work with experienced suppliers and freight forwarders. Prepare complete documentation—commercial invoices, certificates of origin, technical specs—and anticipate customs duties and handling fees. Request spare parts kits from suppliers and consider local warehousing of critical components.

Q: How long before I see profit from an arcade business in Cuba?
A: Payback periods commonly range from 12 to 36 months, depending on location, concept, investment size, and seasonality. Strong management, high uptime, and effective marketing can accelerate profitability.

Q: Can a turnkey supplier help with market research and setup?
A: Yes. Turnkey suppliers like Guangzhou Dinibao Animation Technology Co., Ltd. provide end-to-end services including market research, project planning, theme and decoration design, equipment supply, installation, and training—helping reduce complexity and speed up launch.