I don't have one, by the way (I don't think I have any properly rare games or hardware), but I found this web page: http://www.pinrepair.com/arcade/rayolit.htm and it made me wonder if this was the first thing that could properly be called an arcade machine. Of course, before then there were no doubt coin operated games machines, but probably too simplistic to be called arcade machines by most people nowadays.
I guess it would TECHNICALLY be an arcade machine of some sort. But it isn't a video game system since there is no form of video on it. Had the TV even been invented yet???
Yes, the BBC started broadcasting TV programs in 1932, but it wasn't until a year or so later that the programs became regular.
Yes, but I don't think it was until much later (definitely after the Great Depression?) that they became remotely common. the cabinet is beautiful!
The word came way before television and such. The Victorians had penny arcades with bagatelle games and similar with ball bearings. Then there were all the slot machines and "try your strength" style fairground machines. Even Bally were making pinball tables from 1932. So no, it's not the first arcade machine.
You have to make (or find someone who will do it for you) spare parts when it comes to stuff as old as this.