Interview by Phoenix TV on Claw Machines and Gambling

In the interview, Mr Gordon Chan explained the gambling law of Hong Kong and discussed the lack of regulation for claw machines following a recent court ruling in 2022.

Claw machines have been present in Hong Kong for a long time. Typically, one would insert a coin and attempt to grab a teddy bear, for instance, from the machine. In recent years, we have witnessed a surge in claw machines. Many shops of various sizes have opened, featuring only claw machines throughout the entire establishment.

However, as new ways to earn prizes emerged, there are concerns that it may become gambling.

Under the Gambling Ordinance (Cap 148), playing a “game of chance” and a “game of chance and skill combined” for winnings in money or other property amounts to gambling. Under section 19, if gambling equipment (such as dice) were found in any premises, there is a presumption that such premise is a gambling establishment.

Thus, it is highly likely that claw machines where the winning of a prize depends upon the rolling of a dice would be seen as a form of gambling. Furthermore, the shop which hosted such machines might also be affected. Worse still, those who played the machines may have committed an offence under section 6 for gambling in a gambling establishment.

On the other hand, claw machines that had no gambling elements are now in an unregulated state. This follows the judgment in Secretary for Justice v Claw Boss Limited [2023] 3 HKC 147, in which the High Court confirmed that shops with claw machines are not required to be licensed under the Places of Public Entertainment Ordinance (Cap 172), as the machines does not fall within the scope of regulated “entertainment”.

Claw machines are nothing new. Whether they should be regulated is a matter for public debate. However, one must be careful when the machine appears to be used for gambling.