Yeah in the 90's when I was kid and lived where I live right now, there was an arcade next to the Pizzeria restaurant where I live. However, it was shut down because it got overran by pedophiles and druggies. I think I only went there once with my bro, but we didn't play any game because we had no money. It seemed pretty fun, though, and I would sure go there today if it was still open. In the 70's there was one in the mall nearby too, which closed since then (I bet it was for the same reasons)
Nowadays the only arcades are the Mega Parc or Cineplex Odéon theaters (when Famous Player went out of business, I think they bought all the arcades that were there). There is also the La Planque store in St-Roch district, which got a MKII and Killer Instinct set of arcades and they're free (although I doubt the store owners would like if you spent hours playing them without buying anything)
I bet that some arcades shutting down was partly due to lower profits too, since we have been able to play much more advanced or the same games at home for a long time now. Back then, arcades usually had graphics way ahead of their time, because they were not limited by size and the technology was dedicated to running one game in particular.