There are quite many new installations (I run coinatmradar.com). However, I must admit there are many which close business.

In the end of the day - the main reason is probably lack of demand. Masses are still not looking of entering into bitcoin.

So sometimes the machine might be not profitable, taking into account initial costs (machine price, legal costs) - not that many operators might want to try it.

However, I know operators who earn a lot via bitcoin ATM business, of course, they run a network, not just one machine.

Other reasons are regulation and high fees. Regulation and all compliance stuff made the operators very careful of entering this business, both from the cost and organizational perspective.

As the result fees are quite high, now about 6% commission on average. With increased competition fees didn't go lower. I think mainly it's because the most of buyers will buy the same amount of bitcoins at 3% commission or 6% or 10%. So basically these high fees are kind of equilibrium operators find in order to maximize profits. If you make fees lower - you won't get that much new customers in order to cover the commission difference via volume.