The arcade game distribution industry employs several established business models to generate revenue and maintain profitability. The most common distribution models include direct sales, leasing programs, revenue sharing agreements, and location partnerships.

Direct sales represent the traditional approach where distributors sell arcade machines outright to venue owners. This model provides immediate revenue but requires customers to make significant capital investments. Leasing programs offer an alternative where operators pay monthly fees to use equipment, making entry more accessible for smaller businesses.

Revenue sharing has become increasingly popular, particularly for high-end arcade systems. In this arrangement, distributors place machines in venues without upfront costs and split the earnings with location owners. This creates ongoing passive income while ensuring both parties benefit from machine performance.

Location partnerships involve strategic alliances with entertainment centers, restaurants, and shopping malls. Distributors provide curated game selections while venues offer space and foot traffic. Some distributors also incorporate service contracts, providing maintenance and game rotation for additional recurring revenue.

Successful distributors often combine multiple models, adapting to market demands and customer preferences. The choice of business model typically depends on target market segments, capital availability, and long-term growth strategies within the evolving coin-operated entertainment industry.