SINGAPORE, June 12 — Eleven people, including teenagers, are being investigated in Singapore for suspected links to illegal online gambling activities and misuse of bank accounts, according to The Straits Times. 

The Singapore daily reported the nine men and two women, aged between 17 and 23, were arrested in raids conducted between June 4 and 11 as part of enforcement efforts against illegal gambling.

Police said the suspects are believed to have helped facilitate illegal online betting by obtaining accounts from unlicensed gambling operators or by providing personal bank accounts for financial transactions linked to syndicates.

“Not only are such activities criminal offences, they may also expose individuals and their families to significant financial and social harm,” police reportedly said. 

Of those arrested, three are suspected of obtaining illegal betting accounts for others, while seven are believed to have handed over control of their bank accounts to gambling syndicates after opening them.

One woman is also suspected of obtaining and attempting to procure bank accounts for illegal use by offering payment.

Police warned that those involved in illegal betting operations as agents can face fines of up to S$200,000 and jail terms of up to seven years, while those convicted of gambling with unlawful providers can face fines of up to S$10,000 and/or up to six months’ jail.

The Straits Times also reported that authorities reminded the public to report illegal gambling websites and seek help through the National Council on Problem Gambling if needed. 

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.”