Short answers, pulled from the story.
The term penny arcade emerged between 1905 and 1910 to describe venues filled with coin-operated entertainment devices. Early machines included bagatelles which combined elements of billiards with non-electrical pinball mechanics.
Video game arcades gained momentum in the late 1970s with Space Invaders released in 1978 followed by Galaxian in 1979. The number of video-game arcades across North America more than doubled between 1980 and 1982 reaching a peak of 13,000 facilities.
Home console competition drove this decline since publishers began releasing highly accurate ports of arcade games before they peaked in popularity. By the mid-1990s delays disappeared allowing consumers to play near-perfect copies at home instead of paying per play.
On the 30th of November 1982 Mayor Jerry Parker of Ottumwa Iowa declared his city the Video Game Capital of the World. That initiative birthed the Twin Galaxies Intergalactic Scoreboard and the U.S. National Video Game Team which still exist today.
GiGO operated as a former large six-floor Sega game center located on Chuo Dori in Akihabara Tokyo Japan near LAOX Aso-Bit-City. The UK saw classic venues like Casino and Trocadero close in London though some Trocadero equipment found new life at Heart of Gaming in North Acton.