How to Legally Start a Claw Machine Business in the USA？

Introduction

Claw machines—often called crane game machines or arcade claw games—are among the most recognizable attractions in any entertainment venue. They combine fun, competition, and prizes in one experience, making them an evergreen source of revenue.

For entrepreneurs or arcade owners in the U.S., one of the most common questions is: “Do I need a license to run claw machine games?”

This guide explains everything you need to know about starting your own claw machine business legally in the United States — from licensing requirements to choosing the best custom claw machines and working with a trusted arcade machine manufacturer like Joyfuncade.

Understanding Claw Machines and Their Appeal

A claw machine is an interactive arcade game where players use a joystick to maneuver a mechanical claw and grab prizes like plush toys or gadgets.

Modern versions go far beyond the traditional design. Joyfuncade’s crane game machines include:

• Digital control panels for easier operation.

• LED lighting systems that attract attention in any venue.

• Adjustable claw strength for fair, skill-based play.

• Cashless payment options (QR code, NFC, or card).

Explore our arcade game machine collection to see the latest designs.

Do You Need a License for Claw Machine Games in the USA?

The short answer: it depends on your location and how your claw machine is classified.

1. Skill-Based vs. Chance-Based

Most claw machine games are considered skill-based, meaning players influence the outcome.
This classification exempts them from gambling laws in most states.

2. Prize Value Restrictions

Some states restrict the maximum retail value of prizes, typically ranging from $5–$10, to prevent machines from being labeled as gambling devices.

3. Local Business and Amusement Permits

Even if you don’t need a gambling license, most regions still require:

• A general business license, and

• An amusement device permit (if operating multiple units).

Example:

• California requires city-level amusement permits.

• Texas and Georgia only require standard business registration.

• Florida mandates an amusement license for arcades with two or more machines.
  

The Business Potential of Claw Machines in the U.S.

1. Low Operating Cost

Claw machine games are compact and fully automated. Once installed, they require minimal staff, making them ideal for small business owners or mall operators.

2. High Return on Investment

According to industry data, a single claw game machine can earn between $200–$500 per week, depending on location and prize type. With multiple machines, profits scale quickly.

3. Flexible Installation

You can place claw machines in:

• Shopping malls

• Family entertainment centers

• Restaurants or cafés

• Airports and cinemas

• Game arcades

Joyfuncade provides turnkey site design and setup to optimize machine layout and traffic flow.

How to Start Your Claw Machine Business?

Step 1: Choose Your Machines

Start with 2–5 units of Claw Game Machines to test traffic and engagement.

Step 2: Get Local Business Licenses

Register your business, apply for amusement permits if required, and confirm your tax category.

Step 3: Select High-Traffic Locations

Position machines near entrances, food courts, or entertainment zones.

Step 4: Offer Attractive Prizes

Plush toys, small gadgets, or themed items increase replay value.

Step 5: Maintain and Promote

Keep machines clean, rotate prizes often, and promote on social media.

Joyfuncade can assist with custom machine design, layout planning, and ongoing technical support.

Custom Claw Machines: Add Your Brand Identity

A custom claw machine isn’t just a game — it’s also a marketing tool. Joyfuncade allows full customization, including:

• Cabinet color and lighting

• Brand logo and artwork

• Prize window design

• Payment systems and music

These personalized touches turn your crane game machine into a recognizable attraction that reinforces your brand.

Discover our arcade game machine collection.

Why Choose Joyfuncade as Your Arcade Machine Manufacturer?

1. Over 10 Years of Industry Experience

Joyfuncade is an established arcade machine manufacturer with clients in over 90 countries, supplying everything from claw machines to racing simulators and vending games.

2. One-Stop Arcade Setup

We offer full-site planning, design, logistics, and installation. Whether your space is 50m² or 500m², we deliver turnkey arcade solutions tailored to your needs.

3. Reliable Quality and Support

Every claw game machine is tested for long operational life. We provide after-sales support, spare parts, and technical training for operators.

4. Global Shipping

We export worldwide with secure packaging and easy installation guides.

Legal Tips for Operating Claw Machines in the USA

• Keep Prizes Low in Value: Avoid items that could be classified as “gambling prizes.”

• Display Clear Rules: Transparency keeps your business compliant.

• Use Skill-Based Mechanics: Ensure players have fair control of the claw.

• Maintain Machines Regularly: Prevent malfunction complaints.

Joyfuncade’s machines are pre-configured for compliance, minimizing regulatory risks.

The Future of Claw Machine Games

Claw machines are evolving beyond classic arcade setups. Modern versions now include:

• Smart payment systems (QR & NFC)

• IoT-based monitoring for remote management

• Interactive lighting and AI control boards

These innovations make claw machine games a long-term, scalable investment opportunity.

Conclusion: Build Your Claw Machine Business with Joyfuncade

Starting a claw machine business in the USA is both legal and highly profitable when done correctly. By securing the right permits and partnering with an experienced arcade machine manufacturer like Joyfuncade, you can operate confidently and maximize returns.

Whether you need a few arcade claw machines for a mall or a full-scale custom claw machine arcade, Joyfuncade offers the equipment, design, and support to help your business thrive.

Visit Joyfuncade.com to explore our full range of claw game machines and turnkey arcade solutions today.