Amusement Machine Route
Claw machines and arcade games — someone has to own them
Bottom line
Operator-friendly model; diligence should focus on acquisition price.
Amusement machine operators place coin-operated games — claw machines, redemption games, pinball, photo booths, cranes — in bars, restaurants, laundromats, bowling alleys, and family venues. The operator owns the equipment, splits revenue with the location (typically 50/50), and services machines on a regular route. Zero rent. Zero payroll at most locations. Just machines printing quarters.
How It Works
You place machines in high-traffic locations under a revenue-share agreement — usually 50/50. The location provides floor space and electricity; you own, service, and restock the machines. Operators run weekly or biweekly routes to collect cash, restock prizes, and perform light maintenance. Cashless card readers are now standard and increase revenue 20-40%.
BizBite verdict
Worth underwriting
Amusement Machine Route has enough high-level data for a first look, but BizBite has not assigned a category-specific operating model yet. Treat the score as preliminary.
Why it may work
- +Attractive 38% estimated margin profile
- +SBA dataset shows 7 recent comparable loans
Be careful
- !Source link status has not been verified yet
- !No last-checked date yet
- !No category operating model yet
SBA 7(a) data
Real acquisitions in this category
Change-of-ownership loans · NAICS 713120 · Amusement Arcades
Deal size distribution
Deal flow over time
Financing profile
Recent comparable deals
| Closed | State | Loan | Implied deal |
|---|---|---|---|
| Dec 2025 | MA | $125K | $147K |
| Mar 2025 | PA | $5M | $5.9M |
| Feb 2025 | CA | $795K | $935K |
| Dec 2024 | MO | $1.3M | $1.6M |
| Nov 2024 | UT | $499K | $587K |
| Nov 2024 | WA | $150K | $177K |
| Jun 2024 | TX | $1.4M | $1.6M |
| Feb 2024 | NJ | $1.3M | $1.6M |
| Jan 2024 | CO | $178K | $209K |
| Oct 2023 | NC | $50K | $59K |
Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.
Deal Calculator
Priced off $133K SDE — can this deal service its own debt?
SDE = revenue × margin estimate for this niche; it includes owner compensation, so budget your salary out of cash flow. Excludes working-capital injection, capex reserves, and taxes. Actual SBA terms vary by lender and borrower.
Pros
- +No rent, no employees at most locations
- +50/50 revenue share means locations are aligned incentives
- +Highly scalable — more machines = more income, same overhead
- +Route-based business is acquirable with stable cash flows
- +Cashless upgrades have reinvigorated the industry
Cons
- -Machines require upfront capital ($3K–$15K each, new)
- -Revenue is location-dependent — losing a great spot hurts
- -Regular servicing routes require time or a part-time employee
- -Prize redemption games have inventory costs
Best For
Route-minded operators who want a scalable, semi-passive income machine
Operating Costs
Main costs: location commissions (50% gross), prize inventory for redemption games, fuel, machine maintenance and repairs, and occasional equipment upgrades. No payroll until scale.
Where to Buy
Search amusement route businesses for sale across the US
Equipment supplier and industry resource for amusement operators
American Amusement Machine Association — industry news, events, and operator resources
Buyer's Toolkit
Essential tools to get started
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Largest business-for-sale marketplace in the US
SBA loans and business acquisition financing — get funded fast
ROBS financing — use retirement funds to buy a business tax-free
Bookkeeping for small business owners — hands-off financials
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