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Yes, flash game sites make money .. but try to find some better and cheaper script, getmyownarcade.com is available for about half price and nearly same amount of games.
But to make decent money, you need to advertise your arcade a lot.
Some tips are also involved to make your revenue 5x with the same amount of traffic, but I wont be sharing those. Just telling so that you get hint and explore for more $$ per thousand impressions.
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