11 replies to this topic

[kensplace2]

How can people get started in the amusement industry these days?

Looking into it, it looks like its well over 6 grand for a licence to either
sell a machine OR maintain a machine... So you cant even go round fixing up fruities without a 6 grand licence, that cant be right surely!

It is a heck of a lot of money, just to be able to sell/supply or maintain machines???

There must be a way to start out, and build up a small business without shelling out cash like this surely? Is there any way you can start with a couple of machines, maybe rent them out to a pub or shop, and offer simple repairs locally to other taxi-firms etc with machines? Maybe eventually open a small arcade?

Slowly build up a stock of machines, then register with a licence when you are supplying to a lot of places, and you have made some money (as you wont be making any money at first probably!)

Or is it very much a rich mans industry, with only those with lots of spare cash to spend who can break into it?

Im just dreaming really, but would love to do something like this one day,
but cant see how if the licence would set me back so much!

Anyone out there started small, maybe as a hobby to earn a few quid, found any loopholes etc?

[Sarky]

Looking into it, it looks like its well over 6 grand for a licence to either sell a machine OR maintain a machine... So you cant even go round fixing up fruities without a 6 grand licence, that cant be right surely!?

Don't forget the certificate lasts for 5 years though. Also you don't need a certificate if you only sell to arcades. Unfortunately, if you want to repair or rent machines you will need a certificate.

The reason for the certificate is they do check to make sure you are of reputable character, no criminal record etc... Why it costs so much... well there's no need to speculate there, is there?

[Bencrest]

TBH put the correct machine in the correct pub and it'll take £4000 a year without a problem - you may want to change it after 6 months or so but £4000 is entirely possible.

You then realise that a second hand very modern machine [I mean 2004 say] can be had for say £400, spares are easy as many have been in use for 6 years or so.

So, thats £6000 per 5 years, but 1 machine over 2 pubs in the space of a year can take £4000. Running a 50/50 profit share that means £2000 per year per machine [again - right pub is critical - find out what people like to play in that pub!], get 5 machines and thats £10000 per year. Thats probably a best case scenario, but even though the initial cost is steep, it should be easy to make a profit.

The problem you would have would be convincing people to change suppliers.

A good idea would be to offer profit shares over set rent. Instead of saying 'give us £300 a month and you keep the profit', say 'we'll maintain the machine free of charge, the machine won't cost a penny and you keep 50% of the takings!'

Won't always work but worth a shot

What you may find is you can only do that to small pubs - where you are looking at £2000 per year turnover, hence £1000 per year 'profit' - assuming n breakdowns needing spares.

You could then either get a set of machines of a certain age [say 3/4 years old for £125 each] and operate in more pubs :

[resigner]

Its significantly higher than £4000 a year ben..........

[Bencrest]

I know, but it depends on the sort of pub. It isn't like he'd get the chance to site them in a Wetherspoons, and I mean in the sort of places we have in Spalding

[Sarky]

I'm afraid cash-box sharing is also currently illegal.

[Bencrest]

Arranging a profit share is illegal? Surely not?!

Rather than paying a set rent, whats wrong with splitting profit 50/50 but including free maintenance?

[kingkebabmaster]

Proffit Share isnt ilegal

i have recently thought of going in to arcade buisness you will be looking at a lot of money. you have to get your gaming certicate £6000 u then have to get a property that is ideal (hard to find) then u would have to get your machines ( you cant buy crap because they wont get played) then u have to license every machine that has more than a 5 pound jkp (costs around £23 a week per machine) u have to make enough money to pay all your bills and then get yourself a wage.

this would be very hard to do especialy if you have to borrow off the bank
i dont need to borrow off the bank and i think it wouuld be to hard to make it work in cardiff

[Nudgeman]

£250 per week/ per cashbox is the average I was quoted.

Resigner I've been blocked by The Arcadia board again because that idiot is posting his stupid pictures and he has a similar ip address to me. Do you still moderate over there?

[kensplace2]

profit sharing is definitely illegal.

[qoute]
IS IT LAWFUL TO SUPPLY GAMING MACHINES TO LICENSED OR REGISTERED PREMISES ON PROFIT OR LOSS SHARING TERMS?



NO. The law states that no person may sell, supply or undertake to maintain a machine on terms or conditions which are in any way dependent upon or provide for any calculation by reference to the extent to which, or the manner in which that machine or any other machine or equipment is used [Section 28(2)].

However, there are exemptions for certain categories of premises and machines may lawfully be supplied on profit sharing terms for use in amusement arcades, pleasure parks, pleasure piers and travelling showmen?s fairs.
[/qoute]

direct qoute from the gaming board http://www.gbgb.org.uk/faq_main.html

Seems the whole industry is geared towards those already in it, or those with plenty of cash to spare, or those that dont mind bending the rules, and dont mind running the risk of getting caught.

[edit]
although there is a new bill
http://www.ateonline...inesJan2005.pdf
that says profit share should be legal, maybe that has come into effect, or maybe it will come into effect soon.
[/edit]

[Sarky]

(Bencrest: sorry, i noticed you replied just a few moments after my post but i'd already left by then.)

Kensplace has posted already the authoratative information on the matter.

I had heard that the new gaming act would allow profit sharing but wasn't sure to what extent so didn't mention it. I do know they plan to have the new Gaming Commission establish by October at which point they can implement sections of the act at will. Full implementation is expected by early 2007. (Currently none of the new rules are in force.)

[resigner]

Nudge, I've never moderated arcadia

£250 a week is close enough for pubs, Id say arcades was about half that, and LBO's are catching pubs up rapidly.

res