Volume 4 · The Machines

Chapter 2 · Buy vs Lease

The biggest equipment decision: buy your machines outright and own them, or rent/lease/revenue-share. Here's when each makes sense.

Learning objectives

How you put machines in your shop (three paths)

1 · Buy outright (own them)

You buy new, used, or refurbished machines. You own the equipment, keep 100% of the play revenue, and control win rates, prizes, and placement entirely.

2 · Lease / rent machines

You pay a monthly fee to rent machines from a supplier (or lease-to-own over time). Lower upfront, predictable cost, and the lessor usually handles maintenance.

3 · Revenue-share with a "route" operator

An amusement route operator places their machines in a location and splits the revenue with the location owner. This is actually the most common beginner structure in the industry — and it works two ways around:

The split is on gross

Revenue splits are usually computed on gross collections, not net after prizes, because the location can't see your prize cost. Cashless readers (Vol 4 · ch 4) make these splits transparent and dispute-free — a big reason to go cashless.

Side-by-side

FactorBuyLease/rentRevenue-share
Upfront capitalHighLowNone
Long-term marginBest (own it)ModerateLowest (split)
Control (win rate, prizes)FullSomeLittle
Maintenance burdenYouLessorOperator
Market riskYou own the riskSharedOperator carries more
Best forCommitted operatorTesting/lower capitalAdding machines without owning

The trap that catches beginners

The "cheap to start" trap

Leasing or revenue-sharing looks appealing because it needs little capital — but for a shop where claw machines are the whole business, giving away 50% of revenue (or paying lease margins) for years means you never build real margin or equity. If you're building the business around claw machines, buying (even just 4–6 core machines) is usually the better long-term play. Leasing/revenue-share makes more sense when you're testing a location or adding a few extra machines without more capital.

So which for YOUR first shop?

Summary

You can buy, lease, or revenue-share your machines. Buying gives the best long-term margin and control and is the right default for a shop built around claw machines — especially with cost-effective used/refurbished units. Leasing or revenue-sharing suits testing, low capital, or side-attraction setups but costs far more in the long run and gives up control. Avoid the "cheap to start" trap that gives away half your revenue for years.

Checklist

Looking ahead

Decided to buy or lease? Chapter 3 tells you exactly where to source machines and what new vs used actually goes for.

Chapter 2 · Buy vs Lease · Claw Machine Business Guide