Complaints Against Claw Machines Surge in Hong Kong: Could Regulation Be on the Horizon?

In recent weeks, claw machines have drawn backlash in Hong Kong, where they have become a staple of amusement arcades. The rise in consumer complaints has sparked concerns about fairness and transparency in these popular games. As people flock to try their hand at winning prizes, they increasingly walk away frustrated and empty-handed.

Reports indicate that official complaints have more than doubled, with the Hong Kong Consumer Council receiving an alarming 42 grievances from January to November this year, a significant increase from just 16 complaints in 2022. Gilly Wong Fung-han, the Chief Executive of the Consumer Council, emphasized the need for oversight, stating, “These games rely purely on luck and use valuable prizes to entice consumers. It’s about time we review whether we should regulate claw machine businesses.”

The lack of regulation under the Places of Public Entertainment Ordinance allows operators to run these machines without a license. Many complaints have highlighted issues such as machines set in a way that makes winning nearly impossible, faulty prizes that don't dispense correctly, and a general lack of support from operators when players encounter problems.

The Consumer Council pointed out that some arcades modify the claw machine settings to increase their revenue, making the winning experience unfairly challenging. They stressed that rules and terms of play should be transparently presented to enhance the consumer experience, thereby preventing excessive difficulty or manipulation of gameplay that could lead to discontent among customers.

One illustrative complaint involved a man who spent a staggering HK$500 (approximately S$85) on a claw machine promising “instant prizes.” After an hour, he ended up with only minor trinkets and was offered an alternative prize that he deemed unsatisfactory. This, combined with a lack of clear terms regarding prize collection, led him to file an official complaint.

In another instance, a man trying to cash in a HK$100 bill at an arcade's coin exchange machine ended up with just one HK$5 coin, creating further frustration because he was denied a cash refund and offered only additional playing rounds instead.

Claw machines are immensely popular across Asia, drawing players of all ages with the allure of winning plush toys, electronics, and more. However, beneath the surface lies the unsettling reality of many machines being rigged, a problem evidenced by cheating scandals in countries like Japan, where authorities have arrested operators for manipulating machines.

Regulations for claw machine prizes are stricter in locations such as Singapore, where the value of prizes is capped to minimize the risk of gambling, especially among young people. The Ministry of Home Affairs (MHA) has stated that while arcade games are seen as entertainment, there is a crucial need for safeguards to prevent gambling-related issues.

Claw machines’ popularity continues to rise in Hong Kong due to their low starting costs and ease of operation. However, the absence of regulatory oversight has raised concerns about potential gambling activities linked to these machines—with police actively monitoring and cracking down on illegal gambling. Residents are urged to be cautious and aware of the legal ramifications associated with gambling in Hong Kong, where such activities are illegal except for licensed operations like horse racing and Mahjong parlours.

As claw machine operators face increasing scrutiny from authorities and frustrated customers alike, the question remains: will Hong Kong implement regulation to ensure fair play and safeguard consumers’ rights?