Including third-party games in arcade machines presents several licensing challenges that operators must navigate. First, securing distribution rights is critical, as many games are protected by copyright laws. Without proper authorization, using these games can lead to legal disputes or fines. Additionally, licensing agreements often vary by region, complicating international distribution. Some game developers may also demand royalties or restrict modifications, limiting customization options. Finally, expired or unclear licenses can create uncertainty, making it essential to consult legal experts before integrating third-party content. Addressing these challenges ensures compliance and avoids costly legal repercussions.