Starting a fish table business is an exciting venture that combines an understanding of gaming entertainment with sharp business savvy. The amusement and arcade industry is a multi-billion dollar market, with consistent demand for games in places like entertainment centers, bars, and restaurants.
This guide will take you through the practical steps of validating your business concept, securing funding, obtaining necessary permits, and acquiring equipment to help you launch a successful fish table business in the U.S.
Step 1: Create a business plan and validate your idea
Research your local market
Before you spend a dollar, gauge your local market. Visit entertainment centers, bars, and social clubs that already have skill-based games. Observe player traffic on different days and times. Note which games are most popular and how much they cost to play.
One thing to watch out for is the complex legal landscape. Fish table regulations vary significantly between states and even cities. Your first call should be to your local business licensing office to understand the specific rules for your area before you go any further.
Analyze competitors and estimate costs
Identify direct competitors using Google Maps and local business directories. See what machines they offer and their pricing. For broader industry data, you can look at reports from sources like IBISWorld to understand market size and growth trends in the arcade and amusement sector.
Speaking of costs, your initial investment will be a major focus. A single new fish table cabinet can range from $5,000 to over $15,000, while you might find used units for $3,000. Don't just go for the cheapest option; unreliable hardware causes downtime and lost revenue.
Here is a typical breakdown for a small setup:
- Gaming Machines (2-4 units): $10,000 - $30,000
- Business Licensing & Permits: $500 - $5,000
- Lease Deposit & First Month's Rent: $3,000 - $10,000
- Initial Cash for Payouts: $2,000 - $5,000
Here are 3 immediate steps to take:
- Visit three local venues with skill games to observe player traffic and game popularity.
- Contact your city’s business licensing department to ask about amusement device regulations.
- Create a preliminary budget spreadsheet listing estimated costs for machines, rent, and permits.
Step 2: Establish your legal structure and secure licenses
Choose your business structure
You might want to consider forming a Limited Liability Company (LLC). This structure protects your personal assets from business debts. Profits pass through to your personal tax return, which simplifies tax filing. Setting one up typically costs between $100 and $500.
As your business grows, an S Corporation could offer tax advantages. It may help you save on self-employment taxes, but it involves more complex compliance and payroll requirements. Consult a CPA to see if this makes sense for you later on.
Navigate permits and licenses
With your structure chosen, you can apply for an Employer Identification Number (EIN) for free from the IRS. Next, you will need a state-level Amusement Device License. Costs and rules vary, so check with your state’s Department of Revenue or Gaming Commission.
Locally, you will need a General Business License and a Certificate of Occupancy for your location. A mistake many new owners make is not confirming their games meet local "skill-based" definitions. This can cause major delays or denial of your amusement license.
Be prepared for the process to take time. Permit processing can range from 4 to 12 weeks, and costs can add up to several thousand dollars depending on your jurisdiction. Start the application process as soon as you have a location in mind.
Here are 3 immediate steps to take:
- Decide between an LLC and an S-Corp and file the formation documents with your state.
- Apply for a free Employer Identification Number (EIN) on the IRS website.
- Contact your state's gaming commission to get the application for an Amusement Device License.
Step 3: Secure insurance and manage risk
Key insurance policies to consider
Your first policy should be General Liability insurance, which covers customer injuries and property damage. A standard $1 million per occurrence policy is a good starting point. This protects you if someone slips and falls in your establishment or has another accident.
Next, you need Commercial Property insurance. This covers your valuable fish tables, cash registers, and other assets against theft, fire, or vandalism. A mistake some owners make is to insure equipment for its current value instead of its full replacement cost, leaving a major gap after a loss.
You can often bundle these into a Business Owner’s Policy (BOP). Depending on your location and machine value, annual premiums typically range from $1,500 to $7,000. If you plan to hire staff, you will also need Workers' Compensation insurance, as required by state law.
When you shop for coverage, seek out agents with experience in the amusement industry. You might want to get quotes from specialists like McGowan Allied Specialty Insurance or CBIZ Entertainment, as they understand the unique risks of gaming businesses better than a general provider.
Here are 3 immediate steps to take:
- Request quotes for a Business Owner's Policy (BOP) that includes general liability and property coverage.
- Ask potential insurance agents about their experience with amusement or skill game businesses.
- Calculate the full replacement cost of your gaming machines to ensure you get adequate property coverage.
Step 4: Find a location and buy equipment
Select and secure your location
Look for spaces between 1,000 and 2,500 square feet in areas zoned for commercial use. High-visibility locations in strip malls or near other entertainment venues attract more foot traffic. Before you sign anything, confirm the zoning allows for amusement devices with your local planning department.
When you negotiate your lease, you might want to ask for a tenant improvement allowance. This can help cover the cost of electrical upgrades. A mistake some owners make is underestimating the power requirements for multiple machines, which can lead to expensive retrofits later.
Purchase your gaming machines
New fish tables from suppliers like 8 Line Supply or Fish Game Kings range from $5,000 to over $15,000 per unit. You will also need a redemption counter, security cameras, and a point-of-sale system to manage transactions and payouts.
Used machines might seem like a deal at around $3,000, but they often lack warranties and can be unreliable. Downtime from a broken machine means lost revenue, so weigh the long-term cost of repairs against the upfront savings. Always test used equipment thoroughly before you buy.
Here are 3 immediate steps to take:
- Identify three potential locations and verify their zoning classification with the city.
- Ask for a tenant improvement allowance for electrical work in your lease negotiations.
- Request price lists and warranty information from two different fish table suppliers.
Step 5: Set up your payment systems
Fish table businesses are primarily cash-based. Players use cash to buy game credits, and you pay out winnings in cash. You need a secure system for this, like a quality cash register and a safe for storing excess funds.
A mistake some new owners make is to operate as cash-only. When players run out of cash, they might leave. Accepting cards for credit purchases keeps them in their seats and playing longer, which directly increases your revenue.
This is where a solution like JIM comes in. For accepting payments on-site, JIM offers a streamlined way to take debit, credit, and digital wallets directly through your smartphone. A customer just needs to tap their card or device on your phone.
At just 1.99% per transaction with no hidden costs or extra hardware, it's particularly useful for letting players top up their credits without an ATM run. Many payment providers charge rates closer to 3%, which eats into your profits over time.
- Get Started: Download JIM app for iOS
- Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone
- Access Funds: Your money is available right on your JIM card as soon as the sale is done - no waiting for bank transfers
Here are 3 immediate steps to take:
- Outline a daily cash handling procedure for your staff, including managing the payout float.
- Download the JIM app to familiarize yourself with the interface before your grand opening.
- Calculate the potential savings of a 1.99% transaction fee versus the typical 3% rate on your projected sales.
Step 6: Secure funding and manage your finances
Find the right funding source
You might want to explore an SBA 7(a) loan, which can provide $50,000 to $250,000 for new businesses. Lenders typically look for a credit score above 680 and a solid business plan. Interest rates often sit around 8-11%.
Another route is equipment financing. This loan specifically covers your gaming machines. Lenders use the machines as collateral, which can make qualification easier than a traditional loan. Rates are often comparable to SBA loans.
A mistake some owners make is to underestimate their working capital. You will need enough cash to cover at least six months of expenses without any revenue. This includes rent, utilities, insurance, and your initial cash for payouts.
Manage your daily finances
Open a dedicated business bank account as soon as your LLC is formed. This keeps your personal and business finances separate, which is important for liability protection and tax purposes. Also, consider accounting software like Wave or QuickBooks to track income and expenses from day one.
Here are 4 immediate steps to take:
- Contact your local bank to ask about their SBA 7(a) loan application process.
- Request a quote for equipment financing to cover the cost of your fish tables.
- Create a 6-month operating budget that includes rent, utilities, and initial payout cash.
- Open a separate business checking account to keep your finances organized.
Step 7: Hire your team and manage operations
Build your frontline team
For a small arcade, you will likely need one or two Game Attendants. Their main jobs are customer service, cash handling, and explaining game rules. Expect to pay between $12 and $18 per hour depending on your location. A Shift Manager might earn $40,000 to $55,000 annually.
A mistake some owners make is to understaff during peak times. A good rule of thumb is one attendant for every 4-6 active machines. This ensures players get quick service for payouts and credit purchases, which keeps them playing longer.
Establish your daily workflow
You need clear procedures from day one. Create a daily operations manual that covers opening and closing duties, cash handling protocols, and how to troubleshoot common machine errors. This document is your playbook for consistent service and security.
For employee scheduling, you might want to use an app like Homebase or 7shifts. These platforms simplify schedule creation and communication with your team. They also help you track hours accurately for payroll, which saves a lot of administrative work.
Here are 4 immediate steps to take:
- Draft job descriptions for a Game Attendant and a Shift Manager.
- Research local pay rates on sites like Glassdoor to set competitive wages.
- Outline a daily cash handling procedure for opening, closing, and shift changes.
- Sign up for a free trial of a scheduling app like Homebase to test its features.
Step 8: Market your business and attract customers
Create a local buzz
Your first marketing push should be a grand opening event. You can promote it with flyers at nearby businesses and posts in local community Facebook groups. A "first $5 free" offer is a great way to get new players in the door and trying the games.
You might also want to partner with non-competing businesses like bars or convenience stores. Offer them a small referral bonus for sending customers your way. This creates a low-cost marketing network that works for you.
Build your digital footprint
Claim your free Google Business Profile immediately. This is how most new customers will find you. A mistake some owners make is to ignore online reviews. You should respond to all feedback, good or bad, to show you are an engaged owner.
Use social media to showcase the atmosphere. Post short videos of big wins (with the player's permission) and announce special promotions on Facebook or Instagram. This builds excitement and provides social proof that your location is the place to be.
Here are 4 immediate steps to take:
- Create and fully populate your Google Business Profile with photos and hours.
- Design a grand opening flyer that includes a new player promotion.
- Identify three local businesses you could approach for a partnership.
- Plan your first week of social media posts to build excitement for your opening.
Step 9: Set your pricing and manage revenue
Choose your pricing model
Most fish table businesses use a points-per-dollar model. A common setup is offering 100 points for every $1 spent. This simple structure makes it easy for players to understand the value they get. You can also offer bonuses, like 1,200 points for a $10 purchase.
Another option is time-based play, where customers pay a flat fee for a set amount of time, like $20 for 30 minutes. This model provides predictable revenue but can be less appealing to players who prefer to manage their own pace and budget.
Set your profit margin
Your goal is to achieve a "hold" percentage between 40% and 60%. This is the portion of money the game keeps. If a machine takes in $1,000 in a day and pays out $500, your hold is 50%. A mistake some owners make is setting payouts too low, which frustrates players.
To find your sweet spot, visit competitors and observe how long people play and how often they win. You want your games to feel fair and exciting. Track your daily hold for each machine on a simple spreadsheet to see which games perform best and adjust as needed.
Here are 3 immediate steps to take:
- Decide if you will use a points-per-dollar or time-based pricing model.
- Visit two competing arcades to note their pricing and bonus offers.
- Create a spreadsheet to track daily revenue, payouts, and hold percentage for each machine.
Step 10: Maintain quality and scale your operations
Keep your machines profitable and running
Your daily hold percentage is your most important quality metric. Continue to track it for each machine, aiming for that 40-60% sweet spot. If a game consistently falls below 30%, it might need a payout adjustment or replacement to remain profitable.
A mistake some owners make is forgetting about preventative maintenance. Create a weekly checklist for each machine. Check for sticky buttons, clean the screens, and confirm bill validators work smoothly. This simple routine prevents revenue loss from machine downtime.
Know when to expand
Look for clear signs to grow. If you have lines for machines during peak hours for a month straight, it is time to add another unit. A good benchmark for opening a second location is when your first spot generates a consistent 20% net profit for six months.
As you grow, you might want to look at an arcade management system like Semnox Parafait. While not needed at first, these systems help you manage games, promotions, and staff across multiple sites from one dashboard, which simplifies scaling your business.
Here are 4 immediate steps to take:
- Create a weekly maintenance checklist for your gaming machines.
- Define the player traffic metric that will trigger your next machine purchase.
- Set a 20% net profit goal for your first location before you consider a second one.
- Review an arcade management system to understand its features for future scaling.
You now have a roadmap to launch your fish table business. Success often comes down to balancing player excitement with your hold percentage. With a solid plan, you are ready to build a profitable and fun venture.
As you manage revenue, remember that simple payment options keep players happy. JIM lets you accept cards on your phone for a flat 1.99% fee, so customers can easily add credits. Download JIM to get started.
