Financial Secretary Paul Chan proposed taxing the Hong Kong Jockey Club (HKJC) HK$2.4 billion annually as a "special football betting duty" for five years from 2023-24, amounting to a total of HK$12 billion1. The proposal was introduced to the Legislative Council on Wednesday, February 22, 2023, as Chan delivered his budget speech for the upcoming fiscal year1.
Chan said the government had given "due consideration" to the competition the HKJC faces from outside the city, and that the club "has also undertaken that the proposal would not reduce its commitment to local charities"1. The government had a deficit of HK$140 billion in 2022-23, with income hit by underperforming land sales and the stock market1.
"In the face of fiscal pressure, we must seek ways to increase government revenue in the short term."
The HKJC said in a statement that it "understands the rationale" behind the proposed tax, and that while the special duty would cause a "substantial reduction in income," its charities trust "will not reduce its regular charity donations to the community, which amounted to HK$4.5 billion in 2021/22"1. The club urged authorities to cut regular betting duty rates in the long term, saying the horse-racing duty stood at 72 to 75 percent, among "the highest in the world"1.
"Any permanent hike in betting duty rates will create structural problems irreversibly damaging the Club's successful integrated business model and continued competitiveness, while benefiting only illegal and offshore betting operators."
Asked about the club's response, Chan said "not many people like to pay more tax" and "they can have their reactions, and we will do what we have to do"1. He said the government chose the special tax on the HKJC instead of raising salary or profit taxes because "I think it can afford that"1. Lawmaker Regina Ip, chairwoman of the New People's Party, said the club saw a surplus from its charity foundation of some HK$40 billion and had not provided quantitative evidence for its forecast, adding: "I really don't see the logic"1.
Chan said he would not adjust salary and income tax rates this year1. With the new revenue, he predicted total government revenue for 2023-24 of HK$642.4 billion, leaving a deficit of HK$54.4 billion, and forecast a surplus from 2024-25 after accounting for bond issuance and repayments1.
| Item | Figure |
|---|---|
| Special football betting duty | HK$2.4 billion a year, five years from 2023-24 |
| Total special duty | HK$12 billion |
| Horse-racing duty rate | 72 to 75 percent |
| HKJC charity donations, 2021/22 | HK$4.5 billion |
| Government deficit, 2022-23 | HK$140 billion |
| Forecast revenue, 2023-24 | HK$642.4 billion |
| Forecast deficit, 2023-24 | HK$54.4 billion |
What it means for players
The duty falls on the HKJC, not on bettors directly, and the club has not said it will change football odds, limits or football bet types because of it. The club's public position is that the special duty cuts its income while charity giving stays level, and that permanent duty increases would push business to illegal and offshore operators1. For anyone betting through a Jockey Club betting account, the practical question is whether the club absorbs the cost or passes it on through pricing; that has not been reported. The club's warning about illegal bookmakers is also a reminder that offshore options sit outside Hong Kong's licensed market, which is covered in Can I Bet on Sports in Hong Kong?
What happens next
The proposal was put to the Legislative Council on February 22, 20231. Chan forecast a return to surplus from 2024-251. Whether the five-year duty is extended, replaced or offset by lower regular betting duties has not been reported.
