‘Totally hooked’: Hong Kong takes aim at claw machine addiction

Claw machine arcades, once seen as harmless entertainment, are now under regulatory scrutiny in Hong Kong as addiction concerns grow. Stores filled with these colorful machines have proliferated across the city, drawing players with the promise of prizes and a sense of accomplishment. However, the seemingly innocent games are raising red flags among officials.

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this is definitely gambling

Players like Neiki Lee, 48, admit to being "totally hooked," describing the activity as "definitely gambling." She has spent an estimated HK$100,000 (US$12,800) over two years on claw machines, a sum equivalent to half her annual salary. Lee struggles with the compulsion, stating, "Every day I scold myself and tell myself to quit: no more, no more."

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For a HK$70 toy, you might eventually spend 700, or even 1,700, and still not be able to grab it. I really want to give it up. Every day I scold myself and tell myself to quit: no more, no more.

Younger players, like 23-year-old Tommy Yu, also report spending hundreds of dollars daily. He notes that even when machines seem to have "traps" and prizes slip away, the feeling of loss drives the urge to play again. Gambling counselor Chu Ho-ming explains this as the "sunk cost fallacy," a psychological loop that keeps addictive behavior going as players invest more to avoid leaving empty-handed.

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When you put money in but don’t get anything back, you feel like you’ve lost out. Yet it keeps driving you to play.

Claw machine operators have operated with few restrictions since a 2022 court ruling exempted them from needing public entertainment licenses. This has allowed for significant expansion. However, a sharp increase in public complaints over the past two years has prompted Hong Kong authorities to propose tighter regulations. Officials acknowledge the "extremely diverse" designs and business models of these machines and are committed to tackling the "deep-seated issues." Some lawmakers suggest capping prize values, aligning with regulations in countries like Britain and Singapore. Even some industry insiders, like Matthew Chan, owner of three claw machine shops, believe tighter regulation is necessary as the industry is "heading in the wrong direction."

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the more (the players) invest, the harder it is to leave empty-handed and walk away. This is the sunk cost fallacy. it keeps the addictive behaviour loop.