Are Claw Machines Legal in California? What You Need to Know in 2025

Yes, claw machines are legal in California, but their operation is subject to specific state and local regulations.

Here’s what you need to know if you’re wondering whether claw machines are legal in California — and how to stay compliant:

Claw Machines Are Legal as “Games of Skill”

California classifies claw machines as amusement devices and games of skill, not gambling machines, provided certain conditions are met. This legal distinction allows them to be operated legally in arcades, malls, convenience stores, and other public venues.

However, if the machine is set up or programmed in a way that makes winning chance-based or manipulates outcomes unfairly, it can be reclassified as an illegal gambling device, which is strictly prohibited.

Local Business and Amusement Device Licenses May Be Required

In California, many cities and counties require business owners to obtain one or both of the following before operating a claw machine:

• A general business license

• A permit or license specifically for amusement devices or coin-operated machines

For example:

• Los Angeles and San Francisco have detailed ordinances for coin-operated amusement machines.

• You may need to apply for an amusement device decal or registration number, sometimes per machine.

These licenses may include:

• A one-time application fee

• An annual renewal

• Inspections to ensure the machine is not operating unfairly

Always check with your local city clerk, business licensing office, or zoning department.

Prize Limitations and Regulations

California generally allows claw machines to dispense non-cash prizes such as toys, candy, or merchandise.

However:

• Prizes must not exceed a certain value, especially if the machine is accessible to minors.

• You cannot offer cash or gambling-style payouts.

• Prizes must be clearly visible and attainable — deceptive practices may lead to penalties or seizure.

4. Consumer Protection and Fair Play Requirements

To stay compliant:

• Machines must offer a genuine and fair chance of winning based on skill.

• Avoid programming machines to delay or limit payouts using internal timers or ratios.

• Misleading players into believing the machine is easier to win than it actually is can trigger consumer protection enforcement.

Some cities have random inspections or require owners to maintain calibration records to prove fair operation.

Summary

claw machines are legal in California as long as:

• They are operated fairly as skill-based machines

• The prizes are non-cash and legally permitted

• You follow all local licensing and amusement device regulations

If you are considering installing a claw machine in a business or public space, always consult with your local regulatory authority to avoid fines or violations.

Would you like help identifying the specific licensing process in your California city or county? I can assist with that too.