If you are talking about eastern vns, arcade machines are still a norm there. If you are talking about western vns, I wouldn't say they appear often, to be honest they barely are present at all.
The Japanese games got a casino. why do you get Pokémon a casino together, it really shouldn't be a thing, though than I've always hated it so maybe kids will see it as a waste of time. Casino's are quite a bit more prominent in Dragon quest though.
I actually don't know that many games with arcade games in them, but arcades are still a thing, think Dave and Buster or old movie theaters, I'm still salty about the one near me turning into a really crappy AMC, rising the prices dramatically, and then closing.
Nowadays gambling machines would be more realistic in most instances, I'm gonna guess the arcade machines are just a cheap, common asset to use in DaZ.
I really miss when I was a kid and the mall had a huge area right next to the food court with tons of arcade games, some of the best times playing all the crazy ass games with my brother and friends while the women were shopping.
I'd say its because they are more easy to integrate. Arcade game have been implemented over thousands of times and are often part of coding challenges for beginners, which makes them so attractive.