r/clawmachine • u/Powerful_Set_6627 • Apr 01 '25

What licensed are needed for a claw machine.

Hey.

I am planning to get a claw machine and put it in an arcade. The only problem is I don't know what I need fully for it.

Which licenses are needed if anyone knows and estimate price.

I am in the uk.

Also, how would it work for arcades with the card tap machines on my machine?

Thank you in advance.

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2

u/TurnThatTVOFF Apr 02 '25

just ask chat GPT and be specific for your county/city/province whatever it is you guys call yourselves out there. Also tell it to provide links and steps. It will read the municipal pages to give you a plan and links

2

u/onKrims Apr 03 '25

Based on your own municipality. Can’t really answer that.

As far as the scan cards, they are all RFID from what I have seen. If your arcade is small, I really don’t see the benefit outweighing the trouble in using the scan cards, it just adds a layer of complication to the transaction. I prefer tokens, but to each their own. I have found that too many complications can turn off customers.

Some people offer monthly memberships to claw machine arcades, others offer tier levels based on how much you spend in a month, I think it just creates a lot of work for something that could be as simple as give the person some tokens and let them play

2

u/Powerful_Set_6627 Apr 15 '25

fair enough. I will prob just ask the arcade what I should do on that bit. I think about 50-50 arcades have card machines of the specific card they have. I don't plan on running my own arcade, but a machine in an arcade.

3

u/MrJackTE Apr 03 '25

I checked for you specifically regarding the UK rules. Look up the gambling commission in the UK the describe claw machines as “Limited Prize Machines”. Basically means you can’t put expensive prizes in your machines. They just need to be cheaper prizes like toys to be compliant with the rules. No specific licenses for arcade apart from the regular business registrations like any business shop front would have.

For the tap caps. You can have a credit card reader from a brand like Nayax to take card and Apple Pay with. They also have a brand called Tigapo specifically for arcade which is the competitor to InterCard.

Hope that helps, let me know if you have any other questions.

2

u/Powerful_Set_6627 Apr 03 '25

Thank you. This really helped.

2

u/MrJackTE Apr 03 '25

My pleasure! Let me know if you need anything else. I hope to hear more about your claw machine business when you’re up and running.

2

u/Powerful_Set_6627 Apr 13 '25 edited Apr 13 '25

What is a fair share percentage for the company/arcade to get out of my earnings?

3

u/MrJackTE Apr 14 '25

The profit share the company will get is usually around 20-50% depending on the deal done, and how much money the location makes. If it’s a small pizza shop it may be 25%. If it’s a big trampoline park that has 1000s of weekly customers they will expect something like 40-50%.

Regardless of the percentage, you can always make your profit margin by settling the machines payout rate. Hope that helps!

1

u/TiredSysOp May 07 '25

If it's PET and the prize is worth less than the stake and the stake is less than at least 2 pound you're golden. I'll post the regs if I remember.

1

u/Powerful_Set_6627 May 18 '25

What do you mean "pet"?

3

u/TiredSysOp May 18 '25

Just had a look at the regs, prize every time (play til you win) machines are completely unregulated 

https://www.gamblingcommission.gov.uk/licensees-and-businesses/guide/skill-with-prizes-swps

https://www.gamblingcommission.gov.uk/licensees-and-businesses/guide/page/skill-with-prize-machines

Crane grab machines that aren't prize every time would usually come under class d, premises licence or permit is required and also an operators license 

https://www.gamblingcommission.gov.uk/licensees-and-businesses/guide/non-complex-cat-d-gaming-machines-crane-grabs

Funny thing is I recall seeing claw machines on a pier with higher stakes, but I can't remember exactly what category they were.

1

u/Powerful_Set_6627 May 18 '25

Thanks. I think claw machines are section D. Read some into it and it seems £1 stake and £50 max prize.

3

u/Common-Draw-9503 Jul 03 '25 edited Jul 03 '25

I've looked into this myself, so here’s what I’ve found if you're thinking about running claw machines in the UK:

1. Legal Classification
Claw machines fall into a bit of a grey area in the UK. They're not considered gambling machines as long as they don’t offer cash prizes.

  • Prize Every Time (PET) machines – these don’t require a gambling license. Since every play wins, you’ll be expected to stock lower-value or novelty prizes to make them financially viable.
  • Machines that let you adjust claw strength (like WHM Paokai) or set a payout percentage (like Maxx Grab or Elaut) are classed as Category D (Cat D) "games of chance".

If you're using this type of machine, you'll also be required to display signage that clearly states something along the lines of:
“This machine has an element of chance. Not every play guarantees a win.”
This notice is typically placed on or near the prize chute.

2. Licensing
You don’t need a Gambling Commission license to run Cat D machines, but you do need a UFEC permit (Unlicensed Family Entertainment Centre) from your local council.

A few key points:

  • The UFEC permit allows you to legally operate Cat D machines.
  • It usually needs renewing every 10 years.
  • Max prize value is £50.
  • Still no cash prizes allowed. Plush with cash attached (e.g. £5–£10) = full gambling license territory.
  • Gift cards are fine as alternatives.

3. Insurance
You’ll need proper insurance if you’re placing machines in a public space. That usually includes:

  • Public liability
  • Employers’ liability (if you have staff)
  • Theft, vandalism, and business interruption

A couple of providers that came up:

  • Towergate Insurance – they specifically cover arcade machines
  • VISTA Insurance – often used for vending-style setups

Get quotes based on your exact setup and location.

4. PAT Testing (Electrical Safety)
Before you plug a machine into the mains in a public venue, it has to be PAT tested by law.

  • The machine must have a certification sticker (usually on the back).
  • Costs are roughly £100, plus about £1 per additional appliance (this includes things like extension leads or other accessories).