I've looked into this and it's something I've got my finger in a little. I might make a move very soon, but I'm happy to help you:
Get a license off the gambling commission. I have bookmarks to the specific forms, prices, etc. on my other laptop and I'll send you the links after Friday (very busy until then, just popped on here before bed) if you like. Easy enough to get info off their website though -
http://www.gamblingcommission.gov.uk/Client/index.asp
If I remember rightly, your local council has to approve it, but this is done through the commission. You'll need an operating license and a personal license. Although I think its changed recently for small businesses - you might not need the personal one. Read the website, I'm just working off memory. A lot of your fees will be waived if you're opening just one arcade and your a new business and what not, which is nice.
In terms of getting machines, you've got a big choice...
- Rent them - maybe a good option if you don't have a lot of capital... Get a good arrangement though - none of this 50/50 malarky. Pay them a set fee per month for the machine and get access to it, so you can take cash in/out and whatnot. This means you'll get new(ish) machines and won't have to fork out the initial capital. You'll also get new machines as they come in and send back unpopular/older games. Don't get me wrong, renting isn't cheap... But its cheaper than buying a pile of new machines, and you've not got the bother of finding machines to buy and trying to flog your old ones.
- Buy them off a distributor - usually the same people that provide the rent service. You can be talking a few hundred quid per machine for the newer ones.
- Buy them off eBay/FruitEmu/etc. Probably the cheapest option, but there are limitations. Firstly - you dont usually get any sort of warrenty/guarentee, so if the machine packs in... You need to find someone to fix it. With rentals/buying off a distributor, you've usually got some sort of cover for a set amount of time, with rentals, they usually take care of repairs as its technically their machine. Secondly - you'll get a lot of second hand machines, which means the games are older and some of the units mightn't be in great knick... If that's a concern for you.
I used to work for John Codona, who owns a lot of the rides you get a fayres up and down the country (if its not him, its the Codona family... Think they're in cahoots with Nobels too). Anyway, he makes a fortune from his site in Aberdeen, but he's had to install other things - such as a Wimpey franchise, bowling alley, minature golf (indoor/outdoor) and of course the fayre rides which are there perminantly to get the families in. I assume you're going for a pure arcade, but people prefer these big units that have crap for the kids to do while you're sitting gambling away your mortgage money.
Location is absolutely everything for these sorts of places. I don't know about Darwen, so I'm no help as to your location but you need to be in areas populated by 18-25 males and retired people. They're the ones who'll come in every day and put there wages through your machines. Kids are another good target market (if unethical) - but you'd need huge volumes as obviously they're going to be putting through a fiver once a week or something.
Get the linked up bingo machines for the oldies. When I was doing research for Codona and for myself - you'd see some old hags put their pension through the machine in 10 minutes, have a cup of tea - then start spending their kids inheritence.
Depends on your location - but personally I'd go down the "adult entertainment centre" unless you're absolutely swamped with kids (who put off the older folk with their lurking and what not) I'd avoid a "family entertainment centre" unless you've got capital to get bowling, golf, rides and whatnot in too. With the AEC you're wanting all your branded pub machines (DOND, Cornation St, Monopoly, etc.) on 30/50p plays initially set at a high return % (to get them as regulars) then play about with the %age to suit your business needs - best policy is usually to set them higher returns on busy days (you're getting 15% of £5000, say) and on quiet days, set them to lower returns (so you're getting 30% of £2500, say). Arcades that get greedy, get quiet - and turnover is really everything with these machines, because your percentage is guarenteed over a few grand worth of plays.
Ideally, get ahold of a machine asap and start tinkering with it. Get used to changing bulbs, sorting the shoots, etc. because if you hire someone in to do all that, you'll be paying them a lot. It's nothing complicated, if you can do an oil change on a car or change your spark plugs, then you'll be able to fix 95% of the problems with your puggys.
Those touchscreen things are big business, I have some figures from a WH manager on how much theres make in a relitavely small branch - you're talking 40% of their total turnover (so nearly as much as football, horse, dog, etc. betting COMBINED). If you can afford them, get them in. If not, when you can afford them - get them in. 50p/£1 a shot, have classic slots on them but its the roulette thats got people hooked big time. I know a bloke who runs a successful kebab place up the road from me, was losing £500 a week into those things... He won a few times, but I reckon he was about £1250+ down a month - and thats what I saw.
There's loads more I could tell ya but its my bedtime, got to get up and check the papers early and got piles to do. PM me on Friday to remind me about this and I'll tell you everything I know
