Here is an example of how an un-authorized distributor could get games and make a small profit:
Say JJP sells games to Automated for $7000 a game to be sold by Automated for $8000 (the current price).
Rather than take possession of some of the games, Automated makes a sweetheart deal with Bene's guy for 5 machines to be shipped directly from JJP for $7500 a game. Automated makes a quick $2500 and Bene's guy gets 5 games to sell to make a few hundred dollars a piece on after the reduced shipping costs associated with a shipment of 5 games (maybe $200 a game for shipping). The other added benefit is that a guy like Bene could get one of the games at a reduced price for his pizza arcade.
The other thing that Bene's guy can do is charge a little less than the $8000 price to undersell the real distributors, especially since he is not bound by any JJP contract.
This is why Pinballstar is stewing.