* Frank Hardy: The older, more cautious and analytical Hardy brother.
* Joe Hardy: The younger, more impulsive and adventurous Hardy brother.
* Callie Shaw: A new character introduced in this book, she is a young girl who is a friend of the Hardy boys and helps them with their investigation.
* Mr. and Mrs. Hardy: Frank and Joe's parents, who are supportive and concerned about their sons.
* Biff Hooper: A local bully and a possible suspect in the case.
* Mr. Ronson: The owner of the arcade, who is also a suspect.
* Mr. Henderson: The owner of a nearby jewelry store, who becomes a victim in the mystery.
* The Arcade Gang: A group of teenagers who frequent the arcade and may have information about the crime.
This book also introduces several other characters that play smaller roles, such as:
* The arcade manager: A responsible and helpful individual.
* The police officer: Who assists the Hardy boys with their investigation.
* The local newspaper reporter: Who covers the events of the case.
This list includes the main characters involved in the mystery. Other minor characters are not mentioned here, but may be relevant to the story.