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Hi, I am pretty new to the laws of emulation, but I was wondering about something. If it is legal to rent TVs and controllers instead to bypass royalties of renting games, can you use roms of games you physically own and display as such under this same system? To be clear you are getting paid to rent controllers, not the rom itself, which is why you bypass the royalties. I was thinking of doing something like this. Thank you in advance for your answers.
I doubt you'd be noticed as long as you're a relatively small entity and you don't make waves. If you want exact answers as to the legality of it all I would consider speaking with a lawyer.
That which we have available here can be said to fall within the grey area, but what you have described very clearly sounds illegal. When you bring profit into the mix, then you are breaking laws pretty much in any country. I don't know the full details, but the service of rental itself is a licensed practice, similar to selling alcohol or advertising professional services. Not only would any offended game company successfully be able to sue you, but probably even the IRS for evading taxes.
If you don't own a retro game store with a store front and all of the proper paper work to offer rental services, don't bother asking these types questions. it all sounds like a lot of trouble to me.
The ROMs themselves are illegal in many countries whether you own the games for them or not, renting them would be illegal as well..