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Roxy's Arcade in Cambridge closes after alleged embezzlement

Roxy's Arcade in Cambridge closes after alleged embezzlement

Money Moves Boston, MA local

Speakeasy-style gaming bar shutters after owner says a senior manager allegedly misappropriated tens of thousands and struck a secret vendor deal. The closure furloughed 18 workers.

October 21st, 2026: Roxy's Arcade announces temporary weekend reopening

Overview

Updated Oct 30

Roxy's Arcade in Cambridge's Central Square is closed until further notice. Owner James DiSabatino said a senior manager allegedly took tens of thousands of dollars and left thousands of dollars in vendor invoices unpaid. The closure furloughed 18 workers, and a Central Square Business Improvement District fundraiser had raised $21,186 of a $26,000 goal as of late October.

The arcade announced it would open for two nights, Oct. 23 and 24, as a gathering space with local DJs after its game vendor demanded $22,000 and began removing machines. The weekend events were meant to keep the space alive before it reopens as an arcade, according to Boston.com. DiSabatino declined to identify the former employee or vendor, or say whether he is pursuing legal action.

Why it matters

A single trusted employee's alleged fraud can force a beloved local business to close, showing how vulnerable small operations are to internal theft.

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Key Indicators

$22,000
Secret vendor deal
Amount ownership would have had to pay under the deal, owner says.
$21,186
Worker fundraiser
Raised for 18 furloughed workers as of late October, against a $26,000 goal.

Voices

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People Involved

James DiSabatino
James DiSabatino
Owner, Roxy's Grilled Cheese & Burgers and Roxy's Arcade
Announced a temporary weekend reopening as the business works to reopen as an arcade; police confirmed a report about the allegations was filed.

Organizations Involved

Roxy's Arcade
Roxy's Arcade
Speakeasy-style gaming bar
Closed until further notice; announced a temporary weekend reopening Oct. 23-24, and a fundraiser for 18 furloughed workers had raised $21,186 of a $26,000 goal as of late October.

A 21-plus gaming bar hidden behind a refrigerator door inside Roxy's Grilled Cheese & Burgers in Central Square.
CS
Central Square Business Improvement District
Business improvement district
Organizing a fundraiser for Roxy's Arcade's 18 furloughed workers

A neighborhood business group in Cambridge that supports local restaurants, bars and nightlife.

Timeline

February 2017 October 2026

6 events Latest: October 21st, 2026 · 3 weeks ago
Tap a bar to jump to that date

  1. Roxy's Arcade announces temporary weekend reopening

    Latest Event

    The arcade said it would open Friday and Saturday nights, Oct. 23-24, as a gathering space with local DJs. No games would be available.

  2. Fundraiser launched for furloughed Roxy's workers

    Community

    The Central Square Business Improvement District started a GoFundMe to split donations among 18 workers. It had raised $21,186 of a $26,000 goal as of late October.

  3. Roxy's Arcade announces closure

    Closure

    Owner James DiSabatino says a senior manager allegedly misappropriated funds and made a secret deal with the arcade's game vendor that would have required ownership to pay $22,000. The vendor refused to renegotiate and began removing games, he said.

  4. Police report filed over Roxy's Arcade allegations

    Legal

    A Cambridge police spokesperson said a report about the allegations was filed in the week before Oct. 19. The department declined further comment, citing an ongoing investigation.

  5. Roxy's Allston storefront closes

    Closure

    Original Cambridge Street location shuts down after a decade in business.

  6. Roxy's Arcade opens in Central Square

    Opening

    A4cade, the arcade behind Roxy's, was open by February 2017, according to a Boston Globe photo dated Feb. 21, 2017.

Scenarios

1

Roxy's Arcade reopens after resolving vendor dispute

Possible Resolves by End of 2027

Discussed by: Owner James DiSabatino expressed hope to reopen as soon as possible.

If DiSabatino can renegotiate with the game vendor or find a new one, and recover some funds, the arcade could reopen. The business held a temporary weekend gathering Oct. 23-24 to keep the space active while it works on next steps.

2

Arcade remains permanently closed

Possible Resolves by End of 2027

Discussed by: Given the financial strain and vendor removal, permanent closure is a real possibility.

If the vendor dispute cannot be resolved and the losses are too great, DiSabatino may decide to keep the arcade closed permanently, focusing on the restaurant and food trucks.

3

Manager faces criminal charges

Unlikely Resolves by End of 2027

Discussed by: Cambridge police confirmed a report about the allegations was filed; no charges have been announced.

If police find sufficient evidence, the former manager could face criminal charges. A report was filed in October 2026, but no charges have been announced.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

February 1995

Barings Bank collapse (1995)

Nick Leeson, a trader at Barings Bank, made unauthorized derivatives trades that lost $1.3 billion, bankrupting the 233-year-old bank. The bank was sold for £1.

Then

Barings Bank collapsed and was acquired by ING Group.

Now

The case became a textbook example of how a single rogue employee can bring down an entire institution.

Why this matters now

Like Roxy's Arcade, a trusted insider's hidden actions caused a business to fail, showing how lack of oversight can be catastrophic regardless of size.

January 2008

Société Générale trading loss (2008)

Jérôme Kerviel, a junior trader, made unauthorized trades that lost €4.9 billion, nearly bankrupting the French bank. The bank survived but took a massive hit.

Then

Société Générale raised capital and survived, but Kerviel was convicted and sentenced to prison.

Now

The incident highlighted the dangers of inadequate internal controls and the impact of a single employee's actions.

Why this matters now

Another example of a rogue employee causing massive losses, illustrating the same mechanism of internal fraud that forced Roxy's Arcade to close.

Sources

(7)
+1
r/boston Hoodline The Boston Globe Boston Newsroom Boston.com GoFundMe Nanopress Daily Brief