Keelung, Taiwan – April 26, 2026 — A claw machine operator in northern Taiwan has been formally charged after prosecutors found that dozens of machines under his control were illegally modified into gambling-like devices.
According to investigators from the Keelung District Prosecutors Office, a man surnamed Shao operated multiple “skill-based” claw machines across several locations, including Yuan Yuan Road, Badu Road, and Xiao San Road. However, authorities say the machines were significantly altered to change their original function.
Shao reportedly modified at least 56 machines by replacing the standard claw mechanism with magnetic grab systems, adding bouncing mechanisms, obstacles, and other internal changes that affected winning probability. In some cases, players who successfully obtained a prize were also rewarded with scratch-off lottery tickets.
Investigators further discovered that the machines offered payout limits exceeding legal thresholds and involved gameplay mechanics that introduced randomness, making outcomes dependent on chance rather than skill.
Authorities stated that Shao did not hold the required license under Taiwan’s Electronic Game Arcade regulations. Despite this, he continued operating the machines without undergoing proper inspection or classification after modifying their structure.
Police from the Keelung City Police Department seized the machines and transferred the case to prosecutors, who concluded that the altered devices had effectively become gambling machines due to their “chance-based” nature.
Prosecutors explained that legally operated claw machines must follow strict rules, including transparent pricing, equivalent prize value, and guaranteed redemption limits. Any structural modification that changes the machine’s operation requires re-evaluation and approval. Without this process, the machines are considered illegal gaming devices.
After completing their investigation, prosecutors indicted Shao for illegally operating electronic gaming machines and for engaging in gambling activities in public places. They also requested the confiscation of all seized machines. The case has been submitted to the court, where prosecutors are seeking heavier penalties due to the scale and repeated nature of the violations.