By William Patterson

Claw machine lover Neiki Lee carefully lowers the metal jaws of a crane with a joystick into a pool of prizes, only to have the small toy slip from its clutches again and again.

Dozens of stores filled with claw machines have sprung up on streets and in malls across Hong Kong’s finance hub in recent years, promising players a treasure trove of prizes and a sense of fulfilment.

The colourfully lit machines, often seen drawing people like moths to a flame, have come under regulatory scrutiny this month, as officials raised addiction concerns over the seemingly harmless games.

Lee, 48, admitted that she was “totally hooked” and that “this is definitely gambling”, adding that she bets at least five Hong Kong dollars every time she attempts to win a higher-value plush toy.

‘Sunk cost fallacy’

An office clerk, Lee said she has spent around HK$100,000 (US$12,800) on claw machines over two years — roughly half her annual salary.

“For a HK$70 toy, you might eventually spend 700, or even 1,700, and still not be able to grab it,” Lee told AFP.

“I really want to give it up. Every day I scold myself and tell myself to quit: no more, no more.”

Player Tommy Yu, 23, said he sometimes spends hundreds of dollars a day on it despite saying some machines have “traps” built in.

“When you put money in but don’t get anything back, you feel like you’ve lost out,” he said.

“Yet it keeps driving you to play.”

Gambling counsellor Chu Ho-ming told AFP that “the more (the players) invest, the harder it is to leave empty-handed and walk away”.

“This is the sunk cost fallacy,” he said, adding that “it keeps the addictive behaviour loop”.

Chu said his team have noticed an increase in youth playing games with “gambling elements”.

Too late?

Claw machine operators have been able to expand and operate largely unrestricted, after a court ruled in 2022 they are not required to possess public entertainment licenses.

But after a sharp rise in the number of public complaints related to so-called claw machine gambling over the last two years, Hong Kong authorities proposed this month to tighten regulations over prize-based arcades, calling the situation after the 2022 ruling “not ideal”.

The design and business models of such gaming machines are “extremely diverse”, officials said, adding that they were committed to tackling the “deep-seated issues”.

Some lawmakers have suggested capping the prize value at HK$300 or below, in line with countries including Britain and Singapore.

Matthew Chan, who owns three claw machine shops in town, told AFP tighter regulation was needed as the industry “was heading in the wrong direction”.

Chan bemoaned the government’s slowness to act, citing that Taiwan’s machines must offer a “guaranteed prize” if a certain amount of money is spent.

“The market already saw a downsize… (Hong Kong’s) consumers have lost confidence in it,” he said, adding that some machine operators were ramping up the difficulty and keeping players hooked.

But player Lee said she believed operators would find ways to evade any regulation enacted.

“It’s impossible that a law… can be applied in a way that is both flawless and fair” for the industry, she said.

“It is difficult to root out addiction problems simply by passing a law.”

Hong Kong’s consumer watchdog has urged claw machine operators to exercise greater transparency amid a surge in complaints over the past two years.

The Consumer Council said on Monday that the number of complaints related to claw machines had surged nearly nine times over two years, from 16 cases in 2023 to 138 in 2025.

“The complaints revealed that some machines displayed or positioned prizes in a way that was prone to misunderstanding; machine settings and gameplay explanations were unclear; and prize quality varied significantly,” the watchdog said.

Citing a complaint, the watchdog said a customer successfully grabbed a box after attempting 40 times and spending around HK$200 – only to discover it was empty.

The shop owner refused to provide a refund, saying the box was displayed only for decorative purposes and was not a prize. After the customer complained to the council, the owner apologised to the complainant and fully refunded the HK$200.

At another shop, a player reported that the claw machine automatically dropped the toy when it reached the top of the machine, preventing it from being delivered to the prize chute. Suspecting that the company had rigged the machines, he lodged a complaint.

“The Council urges claw machine operators to enhance transparency by clearly displaying, on the machine or in a conspicuous location, the charges, gameplay, mechanisms and winning conditions, as well as the contact details of the responsible person,” it said.

It also called on operators to avoid setting an excessive or unreasonable level of difficulty, “which could undermine consumer rights or create negative perceptions.”

The watchdog also advised customers to read the rules carefully and to carefully check the quality of prizes.

They should stop playing and contact staff members if they observe any abnormal settings, it added. If no employees are on site, customers can take videos of gameplay as evidence.

“Whether a prize can be clawed out is influenced not only by machine settings and prize placement, but also by skill and luck. Consumers should weigh expected expenditure against the value of the prize to avoid over‑consumption or addiction,” it added.

The council’s statement comes as the government moves to regulate claw and pinball machines by implementing a licensing regime.

The Home and Youth Affairs Bureau said in a proposal to the Legislative Council last month that the low-maintenance business opportunity, which involves gambling elements or addiction risks, may need to be subject to restrictions to protect players.