1731, "vaulted space" (as arcado from 1640s), via French arcade, which probably is from Italian arcata "arch of a bridge," from arco "arc," from Latin arcus "a bow, arch" (see arc (n.)).
The English word was applied to passages formed by a succession of arches supported on piers or pillars, avenues of trees, and ultimately to any covered avenue (1731), especially one lined with shops (1829) or amusements; hence arcade game (1977).