starting cost?

**sasrob30** · 25th June 2011, 08:04 PM

what would be the cost to set up arcade with around 15 new machines.
i guessing the projected income is base on how many hours each machine is being played. im guessing around 40k-50k for all the machines and the gambling license as it would be a mix of £500 and £70 plus a few £5 jackpots..may be one day il have the money..

**Johnny's Amusements** · 25th June 2011, 08:36 PM

15 x New Machines (£2500 each) = £37500
4 x B3 Licences (£500 machines) = £8000 (yearly)
11 x cat.C Licences (£70 machines) = £9900 (yearly)
Gambling Commission Licence (including application fee) = £3500 ( application fee £1500 + £2000 Yearly)
Local Council Licence = £400 (yearly)

All that little lot will set you back the best part of £60k. That is not even taking the cost of the premisis (Rent,Business Rates & Electricity) plus any staff costs.
You could save a fair bit by not buying brand new machines, but the licensing costs remain the same.

No wonder arcades everywhere are closing when all the best punters (The smokers) have to stand outside in all weathers for a fag!

The only good thing is that £5 jackpot machines (cat.D) remain licence free.

**sasrob30** · 25th June 2011, 09:27 PM

lets round it off at a one off cost of 40k for machines. but then a total cost of around 26k a year for all the License. then say around 40k-55k a year on Rent,Business Rates & Electricity plus staff costs. so thats a cost of 80k a year to just be open!! that big money to pay out. im guessing a B3 machine could take around £250 per hour of play time which could add up to 2k per day but realistically no one going to stay playing for 8 hours a day. i guess 2-4 hours of play time would be more realistic per day but still a big gamble to set arcade if you would be getting a loan or only just have the money to cover the first year. thxs for the info on first set up cost..would u say £250 per hour of play time is about right with B3??

**Johnny's Amusements** · 25th June 2011, 10:29 PM

No. A B3 can make anything from a LOSS up to a maximum of a grand in a week. Average weekly take is about £200 - £300, but all arcades will vary depending on location, players etc. Some locations may take more than this, depending on how busy.

**sasrob30** · 25th June 2011, 10:51 PM

i guess the winning from a B3 machine would not be added as profit for arcades even if a player continue to play on and lost his/her jackpot only the players cash would be profit. i love the fact that they make money from nothing but players choose to play on. i guess thats why they can make a loss over time if they are not being played much they could still drop a random jackpot. a machine a junk if its not being played basically. again thxs for the info...

**JPJPJP** · 30th June 2011, 07:35 AM

You also need some float money - that's not strictly a cost, but it is sunk. On that machine mix you would probably need the thick end of £10k once you consider filling a changer etc. to operate comfortably

**sasrob30** · 30th June 2011, 09:12 AM

very true..the first year would be very tough but im sure high RTP % would draw people back to the arcade to play. with all slots min 90% but the B3 slots set to what the old S16 was 50p=92% £1=96% £2=98% im sure you could drop 1% off of them 91% 95% 97% with all other slots set to 90% RTP. the first year would be aiming to break even with the second year turning a profit.you need to set up a good customer base for the first year. 300k investment should do it but not many people got that kind of money..its a dream for me..need lotto win lol...