Revenue-sharing models are essential for arcade operators to maximize profits while minimizing risks. Here are the most common models used in the industry:

1. Percentage-Based Split – The arcade owner and operator agree on a fixed percentage (e.g., 50/50 or 60/40) of the revenue generated by each machine.

2. Flat Fee Lease – The operator pays a fixed monthly fee to the arcade owner for placing machines on-site, keeping all additional revenue.

3. Hybrid Model – Combines a base lease fee with a smaller percentage split, balancing stability and profit potential.

4. Profit-Sharing with Location Partners – Arcade operators collaborate with venues (e.g., malls or restaurants) to share revenue based on foot traffic and performance.

5. Consignment Model – The machine supplier retains ownership while the arcade pays only after reaching a revenue threshold.

Each model has pros and cons, so operators should choose based on location, machine type, and business goals.