Officials said machine operators would be required to apply for prize-based amusement licences under gambling laws.
They also want to require internet cafes to obtain licences, instead of simply following a voluntary code of practice.
The head of the Legislative Council’s panel on home affairs, culture and sports, unionist Bill Tang, said the move should help tackle addiction problems, especially among young people.
He said some claw machines have mobile phones as prizes, a reward far more valuable than the HK$300 cap for other types of games that require licences.
Tang noted that some operators of gambling abstention services have raised concerns about people spending hours each day on the machines.
The Federation of Trade Unions lawmaker also backed the idea of regulation for individual machines rather than the premises they are located in, saying machines in one shop could belong to different individuals.
“Such a proposal fits today’s situation – we can see [the machines] in so many shopping malls and new-style restaurants,” he told RTHK.
“The machines are there to attract children and make parents consume at the restaurants.”
DAB lawmaker Vincent Cheng, meanwhile, agreed that the new regulations should not be so tight as to stifle operators.
“Now, many shopping malls have introduced claw and pinball machines, perhaps due to difficulties in their operations,” Cheng said on an RTHK programme.
“We have to consider whether their industry’s development would be affected [by the new laws]. We have to strike a balance here and avoid a scenario where they all have to close down because the law is too tight.”
The panel’s councillors are due to discuss the matter at a meeting next Monday.