Mine used to, but they stopped.

I asked why, and they said in the worst case some people would steal them. Maybe they just kept them or “lost” them, or they returned the cases without the game. With something like the Nintendo chips the theft would be obvious, but a couple of disk style ones had labels forged too. A stupid crime, given the last borrower would simply be fined.

On average though, there were a lot of difficulties keeping them in working order. Apparently they were reported non-functional more than DVDs, and despite a contract with a cleaning and restoration company still had a high failure rate requiring frequent replacement. Which is really kinda funny given how 90% of the time the disk is just a DRM token for an online download, shouldn’t be that susceptible to failure from minor damage…

Anyway between these costs and an analysis that physical game media was on the way out the door(probably mostly the costs), the program was discontinued and you can’t borrow games around here anymore.