Complaints against claw machines spike in Hong Kong as consumer watchdog urges fair gameplay

SINGAPORE: When it comes to claw machines, most of us have walked away empty-handed more times than we’ve won. 

And in Hong Kong, where claw machine arcades have become almost ubiquitous, a recent rise in official complaints could soon prompt action by the city’s consumer watchdog. 

Complaint cases have more than doubled in the past year, according to officials from Hong Kong’s Consumer Council, which said it received 42 complaints from January to November this year, as compared to just 16 cases for the whole of 2023. 

“These games rely purely on luck and use valuable prizes such as game consoles, mobile phones and even cash to attract consumers,” said Gilly Wong Fung-han, the council's chief executive in a statement on Monday (Dec 16).

“We believe it's about time to review whether we should regulate claw machine businesses,” she added. 

Claw machine businesses are not regulated under the Places of Public Entertainment Ordinance in Hong Kong, meaning operators and vendors do not need a license to set up shop.

Complaints filed have mostly been over machines that make it impossible to pick up items, Wong said.

These also included prizes which do not fall out properly as well as a lack of support from arcade staff or operators following up on technical issues. 

“To increase revenue, the industry often modifies claw settings or introduces obstacles inside claw machines to make winning more challenging,” the council said. 

Modifications or obstacles should also be “reasonable”, it added, and terms of play should be “clearly stated” to provide a “positive consumer experience, as excessive difficulty or unfair settings could aggravate consumers”. 

“Fair and clear rules” for winning prizes should also be displayed, it said. 

The council also shared details about cases filed by locals who fell victim to claw machines. 

In one case, a man spent HK$500 (S$85) trying to win a waffle maker from an “instant prize” claw machine - guaranteeing immediate rewards to players. 

After nearly an hour of playing, he received only a few trinkets in return and refused the prize. He contacted the operator, who offered him a chocolate fountain machine instead. But no agreement was made despite extended discussions and he filed an official complaint. 

Terms and conditions regarding the collection of prizes were also nowhere to be seen around the machine. 

“As such, he believed that consumers should have the right to select their reward,” the council said. 

Another case saw a man at a local arcade trying to cash in a HK$100 bill at a coin exchange machine but ended up receiving only one HK$5 coin, without receipts.

Rather than a cash refund, he was offered compensation in the form of additional playing rounds.

The arcade upheld its decision to not issue a cash refund, explaining the coin exchange had incurred operating costs such as bank fees and that "refunds in the form of play rounds were therefore intended to prevent exploitation" of the machine.

The council then advised the complainant to consider pursuing further redress through civil avenues. It also reminded claw machine operators that refunding in the form of play rounds is “an unfair practice and no different from forcing consumption”. 

Claw machines are a common sight and crowd magnet in many parts of Asia. 

While players of all ages are drawn to the thrill of winning attractive prizes like adorable plushies, coveted blind box figurines or gadgets like smartphones and cameras, there is a dark truth to most machines being rigged. 

Cheat cases are common in Japan and have seen machine operators and arcade employees being arrested over rigged machines. 

In Singapore, prizes offered at arcades and fun fairs are capped at less than S$100 in accordance with local regulations, to "reduce the risk of gambling inducement, especially among youths".

“We recognise that many Singaporeans consider mystery boxes, arcade games and claw machines as a form of entertainment,” said the Ministry of Home Affairs (MHA). “However, there remains a need for safeguards to ensure that these activities do not induce gambling behaviour and cause social problems.” 

Claw machines have become increasingly prevalent in Hong Kong due to their “low operating costs and minimal entry barrier” according to the Consumer Council, but the lack of regulations around them raises other issues. 

As Hong Kong police continue to crack down on individuals suspected of using these machines for gambling activities, players have been reminded to exercise caution and to be aware of potential legal consequences associated with gambling. 

Gambling activities are illegal in Hong Kong. Authorised activities include horse racing, licenced Mahjong parlours and football betting.