LCQ19: Regulating claw machine venues and pinball machine shops

LCQ19: Regulating claw machine venues and pinball machine shops      
     It has been reported that in recent years, claw machine venues and pinball machine shops have mushroomed in Hong Kong. Some pinball machine shops feature functions such as “odds” and “points” and offer expensive prizes to solicit business, attracting members of the public or even minors to spend entire days there, thus arousing public concern about issues such as “disguised gambling practices and addiction”. In this connection, will the Government inform this Council:
 
(1) of the following information on reports received by the authorities from members of the public regarding claw machines in each of the past five years: (i) the number of reports (including the number of cases suspected of involving (a) illegal gambling, (b) suspected counterfeit or pirated products, and (c) alleged unfair trade practices), (ii) the number of prosecutions, and (iii) the number of successful convictions (including (a) the number of arrests, (b) the number of venues and machines involved, and (c) the amount of fines);
 
(2) given that in its reply to a question raised by a Member of this Council on February 12 last year, the Government indicated that the High Court has ruled that typical claw machine venues where people clamp items in the machines upon payment are no longer required to obtain a Places of Public Entertainment Licence under the Places of Public Entertainment Ordinance (Cap. 172), whether the authorities have plans to strengthen the regulation and inspection of claw machine venues, including formulating a new licensing system and setting the frequency of regular inspections; if so, of the details and the timetable; if not, the reasons for that;
 
(3) given that in its reply to a question raised by a Member of this Council on the first of this month, the Government indicated that if the operation of a pinball machine shop involves the offering of prizes, an Amusements with Prizes Licence (AWPL) should be obtained, and one of the licensing conditions for AWPL is “no prize offered shall be a money prize”, but it is learnt that some pinball machine shops cash out prizes through methods such as “gift redemption” and “private buybacks” to evade regulation, whether the authorities have proactively conducted regular inspections of all pinball machine shops in Hong Kong, and of the measures taken to curb the above situation; if so, the details;
 
(4) whether the Hong Kong Police Force and the Home Affairs Department will strengthen co-operation to regularly make public the number of reports, frequency of inspections, and outcome of prosecutions with respect to illegal gambling and unlicensed operations, etc, in pinball machine shops, with a view to enhancing the transparency of relevant information;
 
(5) given that in its reply to a question raised by a Member of this Council on the first of this month, the Government indicated that it is reviewing matters relating to the regulation of AWPL, whether the scope of the review will cover items such as the business models, value and redemption of prizes, entry age, business locations, and information disclosure requirements with respect to pinball machine shops, and of the respective expected timetables for completing the review and announcing the results; and
 
(6) as there are views that the prizes and their values currently offered by some claw machine venues and pinball machine shops, as well as the operation modes of the machines, may involve gambling elements and are likely to lead to obsession or even addiction among minors, apart from regulation through enacting legislation, whether the authorities have plans to strengthen co-operation with schools, parents and district organisations to educate minors about the associated risks of addiction and obsession; if so, of the details; if not, the reasons for that? 
President,
 
     Having consulted the Hong Kong Police Force (HKPF), the Customs and Excise Department (C&ED) and the Home Affairs Department (HAD), I provide the following consolidated reply to the question raised by the Hon Chan Pui-leung: