Regina Ip Lau Suk-yee, convenor of Hong Kong's Executive Council, said on Sunday that the Jockey Club had overreacted to a proposal from her party to raise the tax on football betting, arguing that football operations cost much less to run than horse racing1. The New People's Party, which Ip chairs, put the proposal forward last Thursday1.
The party suggested increasing the football betting duty from 50 to 80 percent of revenue, a move it said would bring in HK$5.9 billion (US$753 million) for the city's coffers1. The proposal came ahead of next month's budget address1.
In a lengthy statement issued later that day, the club said the proposed raise might result in a deficit in operations, which would "destroy" its business model and jeopardize public interest1.
"A top Hong Kong government adviser has said the Jockey Club had overreacted to her party's proposal to raise the football betting tax, stressing that she believes unlike horse racing, operations for the former cost much less"
Ip also reiterated that there was no need to hand out more consumption vouchers in next month's budget address, because most people would only spend on necessities that would have little effect on boosting the economy1. The report did not state whether the government has responded to the tax proposal, and no figure for the Jockey Club's current football betting revenue or profit was given1.
What it means for players
The proposal concerns the duty the Jockey Club pays on football betting revenue, not the odds or prices offered to bettors, and nothing in the report says any change has been approved1. Football betting in Hong Kong runs through the Jockey Club's fixed odds football betting rules, and the club's football product competes with illegal bookmakers and offshore operators such as Macauslot1. If a higher duty were passed on through tighter margins or fewer markets, bettors would notice it in the prices and options available, but no such change has been announced1. Horse racing, which the Jockey Club also runs, is covered in the guide to betting on horse racing in Hong Kong and to betting duty on horse racing bets1.
What happens next
The budget address is due next month, and the report says Ip made her comments ahead of it1. Whether the football betting duty appears in that address has not been reported1.
