But skill with the game doesn't come from nowhere. You build skill by playing, and with arcade games, you have to pay to play.

Granted, paying for a chance to test and improve your skill sounds a lot more fair than paying to win.

Yea, I recall fondly playing Mortal Kombat in the arcade for literally hours with one quarter vs. a line of people each putting their own quarters in. As long as you won the match it let the winner continue playing without adding more money. An afternoon of entertainment could be had for <$1.