Depends on the level of effort you want to put into it.
The nice thing about termites is they don't eat wiring And they don't seem to like the taste of playfields.

I'd buy if the price is right, but I would absolutely replace the cabinet immediately, and likely not even take it into my house.

I would never buy a termite damaged cabinet and keep it.

Sounds like a good parts machine.

Depends on the game and the amount of damage. I definitely do not like the idea of termite damage but if it's a rare game, well... A lot of the wood panels are easy to recreate with a table saw and/or router (I'm thinking the often termite damaged old EMs) Plus, I learned after needing to replace many water damaged cabinets this past year, donor cabinets are readily available if you're patient.

Can't answer without knowing the game.

He should have said something. Do all the panels have damage or just some? Maybe replace the bad panels?

Did he tell you about the termite issue before the trade?

Maybe not termites but a wood worm infestation and every bit the same problem. The buyer should have informed you of the problem, remedied or not.

Call your local pest control company.

Both Termites and Powder Post Beetles that infest furniture, can be locked in a chamber and gassed or heated.

Wow that was quick!

I'd buy the right pin for the right price and promptly toss the cabinet. It would not go anywhere near my home. Lived in a block and steel frame home for 10 years. Never treated and never had an issue with termites. Bought a brick on wood frame home. Got them within a year of the Termidor treatment expiring. No fun at all and I caught it early. Any house I own gets a termite bond regardless of construction type now. Too much of a PITA if you get them.

I'm a licensed termite inspector.
Do you happen to know what kind of termites?
Yes, there are different kinds. Was there any evidence of mud tubes on or in the cabinet?
If not, it's most likely dry wood termites. If the game was properly treated you should be fine.
I would look at also using wood filler.
Sand,paint and decal.
If the damage is too bad you will need to replace with new wood.

I bought many when I was living in Florida. I had a deal set with a local exterminator. I'd drop off the pin, he'd gas it along with whatever else he had going in, and he would issue me a statement that I included with each sale. Only one time were they bad enough that I had to find a donor cabinet.

I think location might influence people. I'd never buy one here in the north. In Florida, it was too common and too easy to treat a machine.

Would you buy a house that had previous termite damage even if it had been professionally treated?

Yeah, if it had a current termite bond and was fixed right. On my home a 3 ft wide section of an exterior wall had damage going about 7 ft up. That was it. All you could see was where they ate through the caulk at the seams on the drywall and baseboard (subterranean termites). I had the sheetrock cut out anyways (lots of people don't and just cover it up). Oh boy was it a mess. Had professionals cut out the bad stuff and replace and brace and it is all good. I disclosed everything and had no problems selling the house. Shi* happens......

Big thumbs up for Florida Pest Control. I got 3 bids for treatment. They beat everybody else by ~$1K. Not only that, on the initial inspection they treated the affected area free of charge to prevent any further damage.

Once again - it depends. In Wisconsin, no, as it is rare here and probably trouble. In Florida - yes, as it is common. As stated above, the key is proper treatment, repair, and disclosure.

Friend of mine purchased two Rotation 4 at auction both non working.
The only think left on one of the bases was the fake wood vainer.
Worst damage I had ever seen.

Easy to treat, I own a pest control company. If you have a infestation of termites or wood boring beetles the machine can be treated in a fumigation vault with Methyl Bromide without damage to machine. Find a local pest control company that offers this service for fumigation and ask when you can bring it in on a slow week to save some money. Its 100% effective without spraying liquid chemicals on the machine.

Did that once, i'll pass down the road.