The Hong Kong Jockey Club has warned that a proposal to raise the duty on football betting from 50 to 80 percent of revenue could result in a deficit in operations, saying it would "destroy" its business model and jeopardize public interest1. The proposal came from the New People's Party, chaired by Regina Ip Lau Suk-yee, which put it forward on Thursday 26 January 20231.
Ip is convenor of the Executive Council, the city's key decision-making body. She said on Sunday 29 January that the Jockey Club had overreacted to her party's proposal, and that she believes operations for football betting cost much less than those for horse racing1. The party said the increase would bring in HK$5.9 billion (US$753 million) for the city's coffers1.
The club issued a lengthy statement later on the same day the proposal was made1.
"the club said the proposed raise might result in a deficit in operations, which would “destroy” its business model and jeopardize public interest"
The exchange comes ahead of a budget address due the following month. Ip also said there was no need to hand out more consumption vouchers in that address, because most people would only spend on necessities, with little effect on boosting the economy1.
| Item | Detail |
|---|---|
| Proposed by | New People's Party, chaired by Regina Ip Lau Suk-yee1 |
| Proposal date | Thursday 26 January 20231 |
| Change proposed | Football betting duty from 50 to 80 percent of revenue1 |
| Stated revenue gain | HK$5.9 billion (US$753 million)1 |
| Club response | Possible operating deficit; would "destroy" its business model and jeopardize public interest1 |
| Ip's response | Club overreacted; football operations cost much less than horse racing1 |
What it means for players
The proposal concerns the duty the Jockey Club pays on football betting revenue, not a new charge on punters, and no change to betting duty has been announced. The club is the operator of horse racing and football betting in Hong Kong, and it also runs the city's members' clubs with gambling. If a higher duty were imposed and the club's football operation moved into deficit, the practical effects on customers, such as prices, products or the range of markets offered, have not been reported. For locals, expats and visitors who bet in Hong Kong, the legal position and the operator are unchanged by the proposal. General background on how gambling law applies to residents and visitors is set out in the guide to gambling in Asia for expats and visitors.
What happens next
The budget address was due the following month, February 2023, and Ip's remarks were made ahead of it1. Whether the duty change is included in that address, and whether the club and the party respond further, has not been reported.
