Anyone with experience owning a claw machine property, or running vending machines in Taiwan?

The claw machine game here seems like a racket (I would love to learn the machinations of it more though honestly as it is such a strange phenomenon).

At first thought, owning a vending machine/renting out an approved space for one seems more profitable and above-board. It is not hard to imagine however, there would be some unseen hurdles in the process of getting everything going.

Has anyone here had any personal experience or have second-hand info regarding these…endeavors?

Trying to figure out some fun ways to make some side money. :cowboy_hat_face:

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They’re money-laundering scams. Think about the start-up costs: you have to rent a place, buy the machines, buy the garbage that goes inside the machines, then pay electricity. All for a few NT$10 coins? If you’re not a gangster, don’t waste your money.
And you’ll be extorted.

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I think you’re a little late to the game. The market for them has declined over the years. They still exist, but it would be hard to find a profitable location. I hadn’t heard about money laundering, but I had heard that crime syndicates were involved. They sprung up so far and were so widespread that I’m sure they weren’t all gang controlled.
You would need a business licence to run even one.

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That’s not exactly how it always works, you rent the place, buy the machines and lease them out to idiots that put cheap stuff in it. So, a location can have a few ‘machine’ tenants. Of course, you can all do it yourself.

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The stuff inside has probably little value but the there are certain places where you can exchange your price for cash at an other location. Japan has a similar system set up at pachinko places. No gambling allowed and no cash can change hands, you get a voucher or something else that you can swap at an other location for cash. All mafia controlled.

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I have no experience.

But I know they’re mostly run by groups.

That can spread expenses around like move machines around quickly and easily from store to store wherever they get the cheapest rent and if a problem they just move them to the empty space next door down the street or across town.

It’s hard to compete.

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I guess, for an operation that is not just be a thinly concealed method to launder money, one could buy (packaged) stuff in bulk and keep receipts. Put the products in machines (most won’t be taken, if you have any experience with the success rate lmao) at a high traffic location. Take the remaining products back for a refund? Obviously different people in the group need to spread out the refunding, so as not to be blacklisted by the store selling the product being refunded.

Honestly more interested in a vending machine angle for passive, certainly less shady, income.

I agree there is little hope in claw machines – if your goal is not to launder money that is. :sweat_smile:

Oh, and they use scales to weigh items to be able to adjust the claws. I posted a picture on an other thread.

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Not surprised at all, will try to find that, thanks! Anecdotally, I have only ever won one thing before, ever.

I also wouldn’t be surprised if, in a high traffic one (say in a night market), the owning group could have someone on the inside using a non-rigged machine, winning big and drawing a crowd that then wants to play on other machines nearby. I have seen before how people (including myself!) make a crowd around people who seem to consistently win prizes over and over. Most likely these people aren’t part of the scam and have just become competent at outgaming the game, but the possibility is out there… :grimacing:

You’d need receipts and stamps to get the refunds, I doubt this could work.

I heard Unipresident have a monopoly on vending machines. Not sure how much truth to that claim.

Still can see some of this on tiktok and instagram. But usually winning large amounts of low ticket items like instant noodles and detergent.

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Jesus, Unipresident has tendrils in everything here. Wouldn’t be surprised.

Sorry, don’t really follow what you are referring to regarding stamps. Regardless, I can imagine return policies here are much more stingy than the ridiculously lenient ones in many Western countries. So yeah, without even knowing what you are referring to regarding stamps, I see how this strategy wouldn’t work as well in Taiwan.

I think I’ve looked inside about 400 of these stores for a total of about 10,000 looks, and I’ve see high traffic maybe once.
I’m guessing the average store nets 100 NT$10 coins per month.

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