The Hong Kong Jockey Club will be required to pay an additional football betting tax of HK$2.4 billion (US$306 million) annually for the next five years under changes outlined in the Hong Kong Government’s 2023/24 Budget on Wednesday.
Under the Special Football Betting Duty, the HKJC will be required to contribute an additional HK$12 billion (US$1.53 billion) over five years in an effort to help alleviate a HK$140 billion (US$17.8 billion) budget shortfall.
“In the face of fiscal pressure, we must seek ways to increase government revenue in the short term,” said Finance Secretary Paul Chan.
“This arrangement has taken into account the keen external competition faced by Hong Kong’s betting business and the Hong Kong Jockey Club’s commitment not to reduce its commitment to local charities.
“The additional increase in the Jockey Club’s soccer duty from 50% to 60% will not reduce the Jockey Club’s charitable and donations.”
In a statement issued shortly afterwards, the HKJC called for the government to ensure the Special Football Betting Duty was a short-term measure only, stating, “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.
“Most importantly, such increase will adversely impact on the Club’s ability to contribute to the community through our donations to the Hong Kong Jockey Club Charities Trust (“the Trust”) on a sustainable basis.
“Consistent with our purpose, and in such unprecedented times, the Club understands the rationale behind the Government’s decision to impose additional football betting duty, [however] … the Club reiterates the paramount needs to maintain our global and sustainable competitiveness, to effectively combat illegal and offshore betting operators, and to seize the market opportunities through strategic investments in our IT systems and racing assets to strengthen our role as an international racing and wagering hub, similar to the role of Hong Kong being the Country’s International Financial Centre.”
“In this regard, we strongly appeal to the Government to critically review and reduce the betting duty rates on a long term basis, which are the highest in the world, in particular on horse racing which stand at 72.5% to 75%.”
The HKJC also called on the government to support its efforts for more simulcast and world-pool opportunities, and to commence a review on the licensing conditions imposed on football betting.
As previously reported by IAG, the HKJC had earlier expressed its opposition to the proposed increase in Hong Kong’s football betting duty, pointing out that such a move would “destroy Hong Kong’s status as a top horse racing region in the world, undermine the public interest of Hong Kong and cause irreparable damage to Hong Kong.”
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