Hong Kong to tighten grip on claw machines under new licensing proposal

Hong Kong authorities have proposed amending gambling laws to tighten oversight of claw machines and other prize-based amusement games by issuing individual licences for each device, in a bid to prevent addiction. In a document released by the Home and Youth Affairs Bureau on Monday, officials called for a mandatory regime for internet cafes, requiring operators to apply for a licence or an exemption instead of merely following a voluntary code of practice. The preliminary proposal follows a surge in the number of claw and pinball machines across the city, sparking public concern over addiction among users, particularly young people, to games with gambling elements. “Amusements with prizes that contain gaming elements and addiction risks should be included in the regulatory scope,” the bureau’s document submitted to the Legislative Council’s home affairs panel said. “However, [recent] development highlights the need for an appropriate update on existing legislation to reflect policy goals accurately.” Under the current framework, applicants for an Amusements with Prizes Licence must first hold a Places of Public Entertainment Licence. However, the High Court earlier ruled that claw machines did not fall within the definition of entertainment and were exempt from obtaining a permit. The bureau said the current situation was “unideal”, as claw machines and some games with prizes could not be regulated under the Amusements with Prizes Licence. While prize-based pinball machines required licenses, the bureau observed that some operators might have failed to comply with the rules, posing risks to youngsters and other players. Under the proposal, the bureau aims to regulate and license individual prize-based machines. It suggests removing the requirement of holding a Places of Public Entertainment Licence under the Gambling Ordinance and the Gambling Regulations. The bureau plans to step up requirements for issuing an Amusements with Prizes Licence, such as posting notices at the entrance. It would also consider mandating warnings against addiction on licensed devices. The bureau will also review the licence fee and consider applying the cost-recovery principle. Since 2000, each licence has cost HK$3,200 (US$410). Separately, the bureau plans to tighten regulation over internet cafes, which mainly serve online gamers rather than the general public. Currently, operators voluntarily follow the Code of Practice for Internet Computer Services Centres, which was first issued in 2003. The paper outlines guidelines on fire safety, noise control, public order and crime, among other areas. One of the proposals is to allow operators to apply for an exemption from the Amusement Game Centres licence, similar to the arrangement for esports venues. The application would involve inspection from authorities, while operators would have to comply with structural and fire safety, as well as ventilation requirements. The bureau said such a mechanism would strike a balance between regulations, customer safety and the needs of the sector. Another suggestion was to include internet cafes under the licensing regime of the Amusement Game Centres Ordinance, which would stipulate fire and structural safety as licensing requirements. It would also ban people in school uniforms from entering the premises, while requiring these venues to be classified as either an adult or children’s game centre. The bureau said the age limit could prevent young people from getting addicted to online games, but the potential negative label could hinder the industry’s development. It said it would further refine the proposal and consult the public at an appropriate time, adding that it would determine its next steps after considering all comments. The home affairs panel is due to discuss the proposal next Monday. A claw machine owner, who only gave his name as Matthew and owns more than 80 devices, said the regulation came “too late”, as consumers had already lost confidence in the industry. The Consumer Council received 42 claw machine-related complaints in the first 11 months of 2024, up from the 16 for the whole of 2023, noting that the industry often modified claw settings to reduce winning chances. Matthew said the regulation should ensure consumers had a fair chance to win prizes, such as by including a guaranteed-win feature that gives players rewards after spending a designated sum of money. He added that the government should also regulate the prize value, or it would encourage gambling-like behaviour. The owner, who also subleases a few machines, was also concerned about where the buck stops in such cases. Lawmaker Chan Pui-leung, who earlier asked the bureau about the regulation process, said the latest proposal contained few details. He urged authorities to tighten control over gambling elements in such machines and tackle potential grey areas. He added that authorities should also step up supervision and inspection to ensure the regime’s effectiveness. Official figures showed that the Office of the Licensing Authority received 20 complaints related to claw machines involving elements of suspected unlawful gambling between 2021 and 2025.

Hong Kong to tighten grip on claw machines under new licensing proposal

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Move follows surge in claw and pinball machines across city, sparking concern over addiction to games with gambling elements

Move follows surge in claw and pinball machines across city, sparking concern over addiction to games with gambling elements