Film-Tech Forum ARCHIVE: Video Game in lobby

This is topic Video Game in lobby in forum Ground Level at Film-Tech Forum ARCHIVE.

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Posted by Gary Davidson (Member # 2198) on 08-19-2004, 10:35 AM:

Does a theater get a percentage or just a flat monthly fee for letting someone put a video game in their lobby?

Posted by Mike Spaeth (Member # 524) on 08-19-2004, 11:07 AM:

Should be percentage - 50-50 at the least.

Posted by Ken Layton (Member # 133) on 08-19-2004, 11:18 AM:

As someone who has also been in the amusement game business as well as the theater business this is how it works:

You contact a local amusement game operator by looking in the Yellow Pages under "Amusement Devices". The operator will generally place games in your location usually on a 50/50 "revenue sharing" basis. The operator owns, operates, maintains, and collects the money from the machines. You get generally 50% of the money, but that can vary depending on your particular operator and any local/state taxes and license fees. Generally the operator pays for any required amusement machine licenses.

If the particular game operator has never had equipment in your location before, he may elect to start you off with older, used games to "test the waters" money-wise to see what kind of money your location is going to make. If it turns out to do well then the operator will likely bring you newer, better games. Your responsibility is to make sure the games are turned on during normal business hours, that access to the games is not restricted, that you will keep a sharp eye on them so that no one breaks into them or vandalizes them (thus pissing off the game operator), and that you will promptly report any broken or out-of-order machines to the operator so that he can get the machine repaired in a timely manor. After all, a broken or malfunctioning machine doesn't make anybody any money.

Now in return for all this, the operator may require you to sign a legally binding contract (also known as "machine placement agreement"). An operator has a significant investment in the machines and is entitled to make his money. This contract or agreement will also state in it that "no other games or coin operated equipment from any other operator or location-owned equipment is to be brought into this location".

To have one operator bring in equipment and then call a competing operator to also bring in equipment to the same location is a big no-no and is a breach of contract which can get you sued bigtime.

[ 08-19-2004, 05:35 PM: Message edited by: Ken Layton ]

Posted by Gary Davidson (Member # 2198) on 08-19-2004, 11:30 AM:

If you sign a contract for a video game vendor to bring their machines to your theater, how long is a typical contract with them?

Posted by Jason M Miller (Member # 2597) on 08-19-2004, 11:31 AM:

All Goodrich Quality Theaters have a crane game and either a airhocky or foosball table or both. Goodrich owns all products, we have to fill the crane game and count the money in all the games.

Posted by Ken Layton (Member # 133) on 08-19-2004, 05:40 PM:

Gary:

The term of the game contract can vary from company to company, but typically it's 3 years. Read the contract closely as some have an automatic "rollover" (renewal) clause in it whereby the contract automatically renews itself for another 3 years. Usually in these automatic rollover clauses have an escape period during the 30 days prior to the expiration date. During those 30 days you have to send a registered letter to the company stating you are not renewing the contract.

Also, generally the game operator carries the insurance on the games. Most operators only carry liability insurance in case the machine falls on someone.

Posted by Adam Martin (Member # 641) on 08-22-2004, 12:56 PM:

Enough with the video game threads. Discuss it here.