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If I was to open up a classic video.game arcade and run it entirely on downloaded roms is someone coming to take me down?
Yes. You have to have a license to charge people money to play those games.
Otherwise you would have seen a ton of arcades open already
Edit: I only know this because I asked a guy who ran one. His machines were in pretty bad shape and I inquired why he didn't just do as you thought.
You have to own the game to legally download a ROM. Can't say other than that.