The law probably only applies if you upset the police or otherwise annoy someone in charge.
I'd argue that you don't really need to remove the coin mechs if you set the machines to freeplay. And maybe that you could charge admission to get into an area with machines on freeplay.
I might not be willing to bet my machines on it, though. Although I would be highly amused to be legally declared a nuisance. :D
Though the idea of police officers raiding someone's pinball machine collection sounds both hilarious and heinously overreaching at the same time.
[0] To be clear, this law probably would apply to freeplay arcades that charge for entry and electronic arcade money systems like Intercard's swipers or the ones that operate on save data cards in Japan.