gambling risk on claw machines

Adelyn Lau

The Consumer Council has expressed concern that claw machines, which have grown popular across the city, may involve gambling and called for a review of laws for appropriate regulation.

This followed 42 complaints received from January to last month, more than double the 16 complaints last year.

Kenneth Chan Kin-nin, the council's vice chairman of publicity and community relations, said the complaints included a player successfully grabbing a winning paper slip but not receiving the displayed prize. The machine in question was filled with slips that offered reward points and others labeled "instant prize."

The player sought one of the instant prizes, a waffle maker. After spending 45 minutes and nearly HK$500 trying, he obtained the winning slip but only received a gift box containing a few trinkets, Chan said.

He sent an instant message to the machine operator who offered a chocolate fountain as a substitute.

He also found that in collecting some 150 slips, he only earned seven points, with most prizes requiring over 10 points to redeem. The player felt the game was set up to make it difficult to win even basic rewards.

He also argued that the terms for claiming prizes were not displayed, leading him to believe he could choose his rewards.

After unsuccessful attempts to settle the issue with the machine operator, council mediators advised the player to seek legal advice pursuant to further action.

Other complaints involve pincers automatically loosening and an undisclosed "guaranteed grab" mechanism that acted as a minimum spend requirement, as well as instances of a shortage of coins at the venues' coin exchange machine where refunds are given in the form of play rounds, thereby forcing further attempts, Chan said.

"People should be aware of whether the value of the prize is significantly higher than the cost of playing the game," chief executive Gilly Wong Fung-han said, pointing out that as an indication of whether a claw machine is being used for gambling purposes.

She said both machine owners and players are accountable if claw machines are found to be used for gambling. A first-time conviction can result in a fine of up to HK$10,000 and three months in jail.

Wong said parents who give children money to play these games may potentially be committing an offense, which could lead to up to seven years in prison and a fine of up to HK$500,000.

In the past, a license was required to operate claw machines, with regulations stating that cash prizes were not allowed, the value of gifts could not exceed HK$300 and each round should not cost more than HK$5, said Wong.

However, a court ruling in 2022 found the machines did not meet the definition of entertainment under the Places of Public Entertainment Ordinance, thereby eliminating the need for a license and leading to a proliferation of operators.

She urged the administration to bring in regulations, citing examples worldwide, including laws in the UK that classified them as gambling machines, with a maximum charge of 1 (HK$9.84) per play and prizes not exceeding 50.