Plush vending machines: games of skill or games of chance?

Opinion I 22.02.24

By: Magno José

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Gaming market doubles with legal framework, says industry representative 1
Rafael Marchetti Marcondes*

You've almost certainly come across one before. Whether at the mall, the bakery, or the supermarket, there's a good chance you'll find a machine for grabbing plush toys. These claw machines, as they're also known, originated in the United States and became a craze in Brazil during the 1990s and early 2000s. The trend faded, but it has returned now, decades later, with great intensity.

The first records of these machines date back to 1951, when the United States regulated them as gambling. In 1974, the legislation was relaxed and the machines ceased to be classified as such, leading to their popularization in North America. The renewed growth in demand for this type of entertainment worldwide, including in Brazil, is closely linked to social media, which has popularized videos in which people record their wins, creating the false perception that plush slot machines are easier to beat than they actually are.

On YouTube, content creators accumulate millions of views by recounting their exploits and sharing tutorials on how to catch the plush toys.

Claw machines, also known as plush toy claw machines, are those in which people, after buying tokens or inserting money, gain the right to one play and, therefore, a chance to win a prize from those displayed on the machine. After inserting the token or money, within a limited time, they must manipulate the control, positioning the claw over the prize they wish to grab, and press the button to move the claw downwards to grab the prize, automatically rising after grabbing it or not.

These machines are marketed in Brazil as recreational electronic games that offer customers a set amount of playtime, with the possibility of winning a plush toy (or other merchandise) depending exclusively on their skill in operating the machine. But is that really the case? We investigated.

When examining how the plates on plush grabber cranes [1] are configured , we come across important information. The owner of each machine has the freedom to adjust a number of variables.

These variables stem from simpler elements, such as the speed at which the claw moves, the amount of coins/money needed for each play, and the time each player has to complete an attempt.

And the adjustments reach more sensitive points, such as whether the claw closes automatically after the allotted time expires, in order to complete an attempt, or not. The controls also deal with the number of times to complete the random mode (?).

Random mode for completing an attempt… let's see. The manual itself explains this better later on. It is, in fact, the choice of pressure with which the claw holding the prize closes, which can be stronger or weaker. But more than that, it defines the winning frequency.

The frequency between grips with the gripper at low pressure and with the gripper at high pressure can be further spaced out, as indicated in the machine's control panel configuration manual. It can be as low as 1 grip with (strong) pressure every 50 grips, depending on the machine owner's preference.

At this point, some considerations must be made. If the machine owner opts for 1:1, meaning that every catch is made with maximum pressure, capable of grabbing the plush toy, then the game will depend exclusively on the player's skill and the distribution of the plush toy machines will be reasonable, since success or failure will depend solely on each player's ability.

Now, if the option is different: 2:1 (for every 2 throws, the claw has enough pressure in 1), 3:1 (for every 3 throws, the claw has enough pressure in 1); 10:1 (for every 10 throws, the claw has enough pressure in 1); 15:1 (for every 15 throws, the claw has enough pressure in 1) or even 50:1 (for every 50 throws, the claw has enough pressure in 1), then the game changes configuration, the skill factor ceases to be decisive in the result and luck becomes the prevailing factor.

In this analysis, the manual shows that, through the variable "claw closing force," the voltage released to the claw is regulated, which dictates how much pressure will be applied when it closes, determining whether the claw can hold the prize, or whether the prize slips between the claws without being captured, even if a player with the necessary skill manages to position the claw precisely in the direction of the prize.

To create a false sense of control over the game, there are machines that even allow the claw to be released with a medium closing force, which allows the plush toy to be caught, but then causes it to slip between the claws, preventing the player from taking the prize home, thus encouraging addiction in those who play the game. [2] The machine allows its owner to set the voltage of each attempt, whether weak, medium or strong.

It is thus clear that, as long as the minimum number of moves adjustment parameter is not reached, the movements of the players who were correctly directed at the plush toy – which in theory should be able to grab the prize – will not have enough strength in the claw to hold it, and the player loses the game and the prize they were competing for. Only after the adjusted minimum number of moves is reached can the player truly have a chance to win the prize, provided they make the right move, then depending, from a certain number of moves onwards, solely on their skill to win.

There are machines that even allow further restrictions on the player's chances of winning, making it possible to adjust the program to the probability of a prize every 5 plays; and, believe it or not, to ensure the machine never causes a loss to the owner, releasing prizes in accordance with the profit margin previously defined by the machine operator. [3]

Due to the existence of these adjustable parameters in the electronic application that controls the machine, manipulating the outcome of the game according to the owner's wishes, without the player's prior knowledge, there is no other conclusion than that it is a game predominantly based on the player's "luck" or "chance" in order to win the prizes.

In Brazil, there is a clear lack of certification for these devices by a qualified laboratory to ensure that the claw has sufficient pressure to capture the plush toy on all attempts. Only then will we be dealing with a skill game authorized by national law. Otherwise, we will be dealing with a criminal offense, under the terms of article 50, §3, of Decree-Law No. 3.688/41, insofar as winning and losing will depend exclusively or mainly on luck. And even if this were not the case, the product would be flawed due to a lack of transparency with the player, as it does not clearly inform them of the chances of success in each play.

The need for control and oversight of this type of product is urgent. This is not only due to the possibility of it constituting a criminal offense, but mainly because vending machines are handled, for the most part, by children and young people under the age of 18.

The stuffed animal is an attraction for this audience, who develop a false perception that success and their chance of winning are linked to skill and technique, when, in fact, most of the time they are not, since the owners of the equipment manipulate them to make a profit, so that only a small percentage of the players manage to win the prize.

The misleading perception that one has control over the activity, coupled with the fact that this false image is disseminated on social media, is extremely worrying and even harmful because it reaches a child audience that is not prepared to deal with this type of situation and may end up becoming addicted to the game. The solution is simple: rigorous oversight and the requirement that machines be certified so that the skill of each player can prevail. Otherwise, a window is being opened that could expose thousands of children and young people under 18 to an activity with the potential to cause addiction and behavioral problems.

(*) Rafael Marchetti Marcondes is a professor of Sports, Entertainment, and Tax Law. He holds a PhD and Master's degree in Tax Law from PUC/SP. He has an MBA in sports management from ISDE in Barcelona/ES and an MBA in sports betting management from Ohio University/USA. He is the Chief Legal Officer at Rei do Pitaco. He is the President of the Brazilian Fantasy Sports Association (ABFS), Legal Director of the Brazilian Institute for Responsible Gaming (IBJR), and Director of Government Relations at the Brazilian Association for the Defense of Sports Integrity (ABRADIE). The article was published on the Lei em Campo website..

[1] https://pt.scribd.com/document/649352566/CONFIGURACAO-DIP-PLACA-GRUAS-2 , accessed on 1.2.2023.

[2 ] https://www.vox.com/2015/4/3/8339999/claw-machines-rigge d , accessed on 1.2.2023.

[ 3 ] http://www.hominggame.com/UploadFile/Download/Why%20%20Most%20of%20customers%20like%20buying%20Key%20Master%20%20Us(HomingGame).pdf and https://www.vox.com/2015/4/3/8339999/claw-machines-rigged , accessed on 1.2.2023.

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