Manufacturing arcade game machines involves navigating complex licensing requirements at multiple regulatory levels. At the federal level, manufacturers must obtain proper business licensing and ensure their electrical components meet UL (Underwriters Laboratories) safety standards. The Federal Communications Commission (FCC) requires certification for machines that emit radio frequency energy, ensuring they don't cause harmful interference.

Most states mandate specific arcade manufacturing permits through their gaming or amusement commissions. These typically involve background checks, facility inspections, and demonstration of financial stability. Some states with gambling regulations, like Nevada and New Jersey, impose stricter requirements, particularly for machines with gambling-like features or redemption capabilities.

Internationally, manufacturers exporting arcade games must comply with destination country regulations. The European CE marking, Japanese PSE mark, and other regional certifications become necessary. Additionally, software licensing is crucial - manufacturers must secure proper licenses for any third-party intellectual property, including character rights, music, and game engines.

Ongoing compliance involves regular safety inspections, maintaining liability insurance, and adhering to age-appropriate content guidelines. Many jurisdictions require permanent identification plates displaying manufacturer details, serial numbers, and compliance markings. Manufacturers should consult with legal experts specializing in gaming law to navigate this complex regulatory landscape effectively, as non-compliance can result in significant fines and operational shutdowns.