The arcade industry reported record cheating losses in Q1 2026. This article covers the data and what it means for operators.
The Numbers
Q1 2026 saw the highest cheating losses ever recorded across the venues we track. Average losses reached 6.2% of revenue, up from 4.8% in Q4 2025. The increase was driven primarily by two factors: more sophisticated cheating devices and increased operator inattention during the post-pandemic recovery period.
Regional Breakdown
Southeast Asia saw the highest losses at 8.1% of revenue, followed by Latin America at 7.3% and North America at 4.5%. The regional differences correlate with the availability of cheating devices on local online marketplaces and the level of operator awareness in each market.
Machine Type Breakdown
Fish tables continued to be the most targeted machine type, accounting for 55% of all cheating losses. Top ball machines accounted for 20%, coin pushers for 15%, and other machine types for 10%.
Response
Operators who installed anti-cheat protection in Q1 saw their losses drop by an average of 65%. The data clearly shows that protection is the most effective response to rising cheating losses.
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