Rosalie Parisi, co-owner of Lucky 7 arcade in Gloucester, said the arcade has skilled video games, and prizes include gift certificates to local restaurants, gas stations, and stores.
The arcade will be located next to the Registry of Motor Vehicles and Kay Jewelers.
While there will be no food or alcohol in the establishment, Parisi said the arcade is geared only for adults. She said her patrons in Gloucester range "from 50 to 100."
Gardner Trask was the only selectman to vote against the license. Trask said he wanted to see the proposal before the Town Council and State Lottery Committee before he supported the license.
"I am concerned about the game of skill versus game of chance," he said at the meeting. His concern, he said, stemmed from a kiosk with a similar mission at the Liberty Tree Mall.
Parisi said Lucky 7 is under the Arcade Law, similar to Chuck E Cheese's and Bonkers.
"It's completely different than an Internet cafe," she said, which was what she said the former kiosk was operating as. She stressed that the arcade only gives out prizes, not cash.
Chairman Dan Bennett said the State Bureau of Standards approved each of the proposed arcade games.
"What we're doing is perfectly legal," co-owner Sam Parisi said. "This is a win-win. It's a benefit to Danvers businesses, and the elderly people love it."
The location in Gloucester has been open for six years. On the business' website, Rosalie and Sam said they were inspired to open Lucky 7 after visiting an adult arcade while vacationing in Florida. "Lucky 7 Arcade is a place where adults (21 & over) can go to meet and socialize while playing skill 8-liner video games that mimic traditional slots," the site said. "It is a place to unwind, relax and enjoy an adult atmosphere without alcohol & smoking."
Now that the license has been approved, the arcade must comply with regulations to build a handicapped restroom.
An opening date for Lucky 7 has not been set.