Hong Kong's New People's Party, chaired by Regina Ip Lau Suk-yee, proposed on Thursday January 26, 2023 raising the football betting duty from 50 to 80 percent of revenue, a move the party said would bring in HK$5.9 billion (US$753 million) for the city's coffers1.
Ip, who is convenor of the Executive Council, the city's key decision-making body, said on Sunday January 29 that the Jockey Club had overreacted to the proposal, stressing that she believes operations for football betting cost much less than horse racing1.
The Jockey Club, which runs Hong Kong's legal betting operations, issued a lengthy statement the same day as the proposal. It said the raise might result in a deficit in operations, which would "destroy" its business model and jeopardize public interest1.
"New People's Party, chaired by Ip, last Thursday suggested increasing the football betting duty from 50 to 80 percent of revenue"
The proposal came ahead of the budget address scheduled for the following month. Ip also said there was no need to hand out more consumption vouchers in that address, arguing most people would only spend on necessities with little effect on boosting the economy1.
| Item | Detail |
|---|---|
| Current football betting duty | 50 percent of revenue |
| Proposed football betting duty | 80 percent of revenue |
| Stated revenue gain | HK$5.9 billion (US$753 million) |
| Party behind proposal | New People's Party, chaired by Regina Ip |
| Jockey Club position | Raise might cause an operating deficit |
What it means for players
The duty is charged on the operator's football betting revenue, not on a bettor's winnings, so the proposal as described concerns the Jockey Club's margins rather than a direct tax on punters1. The Jockey Club's warning that a higher duty could push it into a deficit is its own assessment of what a 30 percentage point increase would do to its business model1. How the club would respond in pricing, product range or payouts if the duty rose has not been reported. Football betting in Hong Kong is offered through the Jockey Club, and the rules and fixed odds it sets are covered in our guide to HKJC fixed odds football betting rules. For the wider picture of where football betting is legal across the region, see football betting in Asia.
What happens next
The proposal was made ahead of the budget address due the following month, February 20231. Whether the government adopts the measure, and whether the duty changes, has not been reported.
