Is a golf simulator business profitable?

Are golf simulator businesses actually profitable? As someone deeply involved in the indoor golf industry, I get this question all the time. The short answer: yes, but like any business, it depends on execution. At Screengolfers.com, we’ve tracked the growth of indoor golf venues across the U.S., Canada, the U.K., and Australia, and we’ve seen firsthand how operators turn a profit, or struggle to.

From startup costs and recurring costs to revenue streams and pricing strategies, there are key factors that separate thriving venues from those that just break even. Whether you’re considering opening your own indoor golf facility or looking for ways to boost profitability, understanding the numbers is critical. Let’s break down what really drives success in this business.

The growth of the indoor golf market

The indoor golf market has seen significant growth in recent years. With advancements in technology, golf simulators now offer a realistic golf experience, and equipment has become more affordable. According to a report by Allied Market Research, the global golf simulator market is expected to reach $3.3 billion by 2027, growing at a CAGR of 8.3% from 2020 to 2027. This growth is fueled by the increasing popularity of indoor sports and the desire for accessible golfing experiences.

Increase in search interest

According to Google Trends, there has been a consistent, and healthy growth in search interest for indoor golf in the last 5 years

Here is what the "Interest over time" metric mean:

Numbers represent search interest relative to the highest point on the chart for the given region and time. A value of 100 is the peak popularity for the term. A value of 50 means that the term is half as popular. A score of 0 means there was not enough data for this term.

Data says indoor golf is more popular than 5 years ago.

In the last 5 years, the term "indoor golf" was especially popular in Canada, Sweden, and the United States.

Here is what the "Interest by region" metric mean:

"See in which location your term was most popular during the specified time frame. Values are calculated on a scale from 0 to 100, where 100 is the location with the most popularity as a fraction of total searches in that location, a value of 50 indicates a location which is half as popular. A value of 0 indicates a location where there was not enough data for this term".

Increase in businesses depending on simulators

According to The Gather Collective NTG report, the number of U.S businesses depending on simulators has grown from 200 in 2016 to over 1600 in 2024 (when the report was publicly released).

At Screengolfers, we help players find and book the best indoor golf venues near them in the US, Canada, England, and Australia. If you check our "Indoor golf USA" page, we have listed 1200 indoor golf centers in the country so far, and we receive new listing demand every week. In other words, I can confirm the accuracy of the numbers in the report.

TGL Golf

Indoor golf is now more mainstream than ever with the launch of TGL Golf (Tomorrow Golf League) on ESPN, increasing the game's reach to a broader sports audience.

Why start a golf simulator business?

Starting a golf simulator business can be a lucrative opportunity. Here are some reasons why:

1. Year-round operation

Unlike traditional golf courses, indoor golf facilities can operate regardless of weather conditions, ensuring a steady stream of customers.

2. Diverse clientele

From corporate events to casual play, indoor golf appeals to a wide range of customers.

3. Technological advancements

Modern simulators offer detailed analytics and immersive experiences, attracting tech-savvy golfers.

4. Scalability

Start small and expand as demand grows, allowing for flexible business growth.

How does a golf simulator business work?

A golf simulator business typically involves setting up bays equipped with launch monitors, software, enclosures, screens, and mats. Customers can book sessions to practice their swings, play virtual rounds on famous courses, participate in golf leagues, or privatize the venue for an event (birthday party, team-building, ...).

Depending on the services and amenities, revenue streams include:

• hourly sim rentals,
• group sim rentals,
• membership fees,
• tournament and league fees,
• event hosting,
• club rental,
• golf lessons,
• golf academies,
• club fitting,
• equipment sale (if you have a pro shop),
• food and beverages.

Pros and cons of a golf simulator business

Pros

• High demand: growing interest in indoor sports.
• Flexible hours: operate beyond traditional golf course hours.
• Low maintenance: compared to outdoor courses, simulators require less upkeep.
• Various revenue streams: like discussed above.

Cons

• Initial investment: high setup costs for quality simulators.
• Rent: golf bays require space, so bigger surfaces.
• Competition: Increasing number of indoor golf facilities.
• Technology dependence: requires regular updates and maintenance.
• Seasonality: indoor golf is mostly practices in winter.

Estimated revenues

The Estimated revenue table below outlines potential income streams for your indoor golf simulator business, considering key revenue sources such as simulator rentals, memberships, food and beverage sales, events & tournaments, retail & merchandise, and sponsorships/advertising:

The estimated revenue ranges between $20,600 and $916,000 per month.

The revenue estimates above are based on industry-standard pricing, typical customer behavior, and your venue size. For example, simulator rental revenue depends on the hourly rate, the number of bays, and average daily bookings:

• The hourly rate per bay is between $30/hr - $80/hr
• Bays are rented in average 4 hours to 12 hours per day
• Venues have in general 2 to 10 golf simulator bays

Membership fees and event participation contribute recurring revenue, while food, beverages, and merchandise increase per-visit earnings:

• Membership fees cost from $100 to $500 per person per month
• Venues in general have between 50 and 500 members
• Clients spend between $10 and $50 in food and beverages
• Between 20 and 200 clients visit the venue per day
• Entry fees for events are priced between $20 and $200
• Venues organize between 2 and 10 events per day
• Customers spend in average between $20 and $100 in merch
• An estimate of 50 to 500 customers buy merch every month

Sponsorships and advertising provide additional income, particularly for businesses with strong local engagement:

• Local sponsorship deals are billed $500 to $5000 per month
• Ad revenue from promotions can generate $500 to $3000 per month

The figures represent a range based on small to large-scale operations, helping to gauge potential earnings depending on location, pricing strategy, and business model.

Upfront investments

Starting an indoor golf simulator business comes with various costs, including upfront investments and ongoing expenses. Below is a rough breakdown of the startup costs. These are the one-time investments needed to launch your business:

Upfront costs range bewteen $50,000 and $500,000+ in average.

The actual costs depend on your location, your business model, and the level of investment in simulators, and services/amenities. It also depends if you are going to rent, or purchase the commercial space.

If you want to build a precise budget for your business plan, call each product and service provider, and ask for quotes.

Then, join the "Golf Simulator Business" Facebook Group. The community is very supportive. Screengolfers is a member of it. You can ask questions to other venue owners/managers, react to posts that talk about topics you are interested in, and discuss in chats in Messenger.

We are not affiliated with the group. We just recommend it, because it's one of the best groups out there for people wanting to open an indoor golf business. There are 3300 members as we write, and it was created in 2022.

Recurring costs

These are the rough monthly or annual expenses to keep the business running:

In total, monthly costs range between $5,000 - $50,000+ depending on your location, commercial surface, number of simulators, services, amenities, the number of employees you need, and business model.

Conclusion: Is a golf simulator business profitable?

Here is a Business financial summary that includes startup costs, recurring costs, revenue, and profit estimates:

In 2025-2026, the potential for profitability in the golf simulator business is promising. With the right location, business plan, marketing strategy, and customer experience, you can open your own screen golf venue successfully.

If you're considering opening an indoor golf, focus on creating a community, and providing a unique customer experience based on local demand. Some businesses are more specialized in performance (fitting, coaching, golf academy, pro shop, physical training...). Other golf sim businesses are more specialized in entertainment (virtual games for kids and families, multisports, private events, food and beverages).

Run the numbers, talk to the industry professionals, other peers (like in the Facebook Group) and find your own identity based on local supply and demand!