Behind the Brand: How Licensed Arcade Games Come to Life
What Goes Into the Process of Acquiring a License for an Arcade Game?
Bringing a well-known brand to life on an arcade game floor can be a powerful way to capture attention, spark excitement, and drive gameplay. But behind every familiar logo or beloved character is a thoughtful and often complex licensing process. At Bay Tek Entertainment, acquiring a license isn’t just about getting permission to use a name it’s about forging a strategic partnership that enhances the gameplay experience and delivers value to our players, our partners, and our customers.
So what exactly goes into acquiring a license for a redemption or arcade game? Here’s a behind-the-scenes look.
Step 1: Understanding the Role of the License
The first step in any licensed game project is determining how essential the brand is to the gameplay. Some games are entirely built around the license where the brand is the core of the concept and experience. In other cases, the license may play more of a supporting role, adding aesthetic flair or increasing visibility without being central to the gameplay mechanic.
This distinction helps shape everything from creative development to the terms of the license agreement. A brand that’s deeply embedded in the gameplay will require closer collaboration, stricter compliance, and a deeper understanding of the IP's voice and values.
Step 2: Sourcing the Right License
Once a concept is in place, the search begins for the right brand to match the vision. There are several ways we source licenses at Bay Tek Entertainment:
Direct Outreach to IP holders or entertainment companies
Industry Networking through our established contacts and relationships
Partnering with a Licensing Agency, such as Dimensional Branding Group, to access a broader network and streamline negotiations
Attending Industry Events like Licensing Expo, IAAPA, or Toy Fair, where brands and manufacturers connect. These events often spark collaborations that might not happen otherwise – a chance encounter at IAAPA can turn into the next big redemption hit.
Every path comes with its own benefits, but the goal remains the same: finding a license that aligns with our game concept, our target demographic, and the expectations of our operator and distributor partners.
Step 3: Negotiating the Licensing Agreement
This is where the process can become complex. Drafting a licensing agreement requires attention to detail, legal expertise, and a firm grasp of both parties’ goals. That’s why many manufacturers choose to work with licensing agencies who can help structure deals that are fair, scalable, and beneficial over the long term.
Key elements of a licensing agreement may include:
Royalty Rates and Payment Terms
Territory and Duration of Use
Brand Guidelines and Approvals Process
Image and Likeness Rights
Exclusivity or Co-Branding Opportunities
Step 4: Upholding Brand Authenticity
Acquiring a license is only the beginning. From there, the real work begins—bringing the brand to life in a way that’s authentic, compelling, and true to its identity. Our development team invests significant time into understanding the essence of the brand, including tone, visual language, and fan expectations.
We collaborate closely with IP owners to ensure:
Image and likeness rights are respected
Gameplay feels “on brand” and not forced
Marketing materials and in-game assets meet brand compliance standards
Authenticity goes beyond compliance. It’s about understanding what fans love most about a brand and translating that into gameplay that feels intuitive, rewarding, and familiar.
More Than a Name, It’s a Partnership
Licensing is more than putting a recognizable logo on a cabinet. It’s about creating a partnership that elevates the gameplay, resonates with fans, and drives success for operators and entertainment centers. At Bay Tek Entertainment, we take pride in approaching every licensed game with strategy, creativity, and respect for the IP we bring to life because when operators see consistent earnings and players keep coming back, everyone wins.