Licensing agreements play a crucial role in determining the availability of branded arcade games. These contracts between game developers and intellectual property (IP) holders dictate terms such as distribution rights, royalties, and exclusivity. Without proper licensing, popular branded games like those based on movies or franchises cannot legally appear in arcades.

High licensing fees can limit smaller arcades from offering branded titles, reducing accessibility. Conversely, exclusive deals may restrict certain games to specific locations or chains, creating uneven availability. Additionally, licensing terms often include expiration dates, meaning games may suddenly disappear from arcades when agreements end.

The complexity of these agreements also affects international distribution, as regional licensing can prevent games from being available globally. For arcade operators, navigating these contracts is essential to maintaining a diverse and appealing game lineup. Ultimately, licensing agreements shape not only which branded games reach arcades but also how widely they can be enjoyed by players.