Claw machines are hard to miss in Hong Kong. The prize-filled devices are clustered in shops across the city, often in the retail void created by the pandemic. Players are understandably drawn to the instant gratification of what appears to be a game of skill. But there is also growing concern about the fairness of claw machines and the increasingly high-value prizes that can introduce gambling elements addictive to some users – particularly young people. The authorities are rightly pursuing ways to tighten oversight of prize-based amusement games through individual machine licensing.

On Monday, the Home and Youth Affairs Bureau called for a mandatory regime for internet cafes, requiring operators to apply for licences or exemptions and encompassing amusements with prizes. At present, operators voluntarily follow the Code of Practice for Internet Computer Services Centres dating back to 2003.

The current framework already requires Amusements with Prizes Licence applicants to first hold a Places of Public Entertainment Licence. But the High Court ruled that claw machines fell outside the definition of entertainment and did not need a permit. The bureau said the situation meant claw machines and some other prize games could not be regulated under the Amusements with Prizes Licence. It said it also plans to step up licence requirements.

Tightened regulations cannot come soon enough. The Consumer Council recorded a rising number of claw machine-related complaints in 2024. The consumer watchdog noted that the industry often modified machines to reduce the chances of winning.

Regulating individual machines makes sense to ensure transparency and consumer protection. Oversight could reduce the chances of a form of entertainment morphing into unregulated gambling and a social crisis. The rules could also help the industry in the long run. Allegations that games are fixed have reportedly kept some local players away. The problem could worsen if visitors feel cheated, undermining the city’s reputation as a tourism hub. The community and industry should support updating regulations to ensure claw machines remain simple, entertaining games that do not risk hooking players with something more sinister.