Budget 2023-24: Hong Kong Jockey Club warns of threat from offshore, unlicensed rivals under proposed HK$2.4 billion yearly betting duty
- Hong Kong’s sole betting operator calls for leeway in licensing renewal terms to ease impact of raise in football betting duty, allow club to combat competition
- Government insider says city’s finance chief planning to table legal amendment in next several months to implement betting duty increase
The Hong Kong Jockey Club has warned of offshore and unlicensed rivals swooping in on business and irreversible damage to competitiveness after the city’s finance chief called for an annual HK$2.4 billion (US$306 million) special football betting duty over the next five years.
According to Financial Secretary Paul Chan Mo-po, the proposal featured in Wednesday’s budget address took into consideration external competition and that existing betting duty rates remained unchanged.
A government insider said Chan was seeking to table an amendment to the Betting Duty Ordinance in the next several months, adding authorities had asked the racing club not to downsize its charity projects as a condition for renewing its licence.
The city’s sole gambling operator said it would pay out an extra HK$12 billion in betting duty over the proposed period, despite making substantial donations to support the community on a regular basis.
“Any permanent hike in betting duty rates will create structural problems, irreversibly damaging the club’s successful integrated model and continued competitiveness while benefiting only illegal and offshore betting operators,” the club wrote in a statement.
The gambling operator also warned the potential extra duty would adversely affect its ability to donate to the community, but vowed not to cut its regular contributions.
The club during the 2021-22 financial year forked out HK$2.1 billion to support pandemic-related initiatives, as well as community activities marking the 25th anniversary of the city’s return to mainland Chinese rule.
