By William Patterson
Claw machine lover Neiki Lee carefully lowers the metal jaws of a crane with a lever on a set of prizes, only to have the little toy slip from its clutches again and again.
Dozens of shops filled with claw machines have sprung up in streets and malls across Hong Kong’s financial center in recent years, promising players a treasure trove of prizes and a sense of fulfillment.
The colorfully lit machines, often seen attracting people like moths to a flame, have come under regulatory scrutiny this month after officials raised concerns about addiction to the seemingly harmless games.
Lee, 48, admitted she was “totally hooked” and that “this is definitely gambling”, adding that she bets at least five Hong Kong dollars every time she tries to win a higher-value plush toy.
‘Sunk cost fallacy’
An office worker, Lee said she has spent about HK$100,000 (US$12,800) on claw machines over two years – roughly half her annual salary.
“For a HK$70 toy, you can end up spending 700, or even 1,700, and still not be able to get hold of it,” Lee told AFP.
“I really want to give up. Every day I scold myself and tell myself to give up: no more, no more.”
Gamer Tommy Yu, 23, said he sometimes spends hundreds of dollars a day on it, despite saying some machines have built-in “traps”.
“When you put money in and get nothing, you feel like you’ve lost,” he said.
“Yet she keeps pushing you to play.”
Gambling adviser Chu Ho-ming told AFP that “the more (players) invest, the harder it is to walk away empty-handed and walk away.”
“This is the sunk cost fallacy,” he said, adding that “it perpetuates addictive behavior.”
Chu said his team has noticed an increase in young people playing games with “gambling elements”.
Too late?
Claw machine operators have been able to expand and operate largely unrestricted since a court ruled in 2022 they are not required to hold public entertainment licenses.
But after a sharp increase in the number of public complaints about so-called claw machine gambling over the past two years, Hong Kong authorities proposed this month to strengthen regulations on prize-based arcades, calling the situation after the 2022 decision “not ideal.”
The design and business models of such gaming machines are “extremely different”, officials said, adding that they were committed to addressing the “deep issues”.
Some lawmakers have suggested capping the price at HK$300 or below, in line with countries including Britain and Singapore.
Matthew Chan, who owns three auto body shops in the city, told AFP stronger regulations were needed as the industry was “going in the wrong direction”.
Chan bemoaned the government’s slowness to act, noting that Taiwan’s cars must offer a “guaranteed price” if a certain amount of money is spent.
“The market has already seen a reduction… (Hong Kong) consumers have lost faith in it,” he said, adding that some machine operators were increasing the difficulty and keeping players tied.
But player Lee said she believed operators would find ways around any regulations passed.
“It is impossible that a law … can be implemented in a way that is both perfect and fair” to the industry, she said.
“It’s hard to eradicate addiction problems just by passing a law.”
