Hong Kong Jockey Club hit with five-year HK$12bn football betting levy

The Hong Kong Jockey Club (HKJC) has been hit with a new special football betting duty of HK$2.4bn (£250m) per year for the next five years.

Announced as part of the government’s new Special Administrative budget, the HKJC will need to start paying of the above fee beginning in the 2023-24 financial year, with the last payment being made in 2027-28.

The new duty will total HK$12bn over the five-year period in a blow to the operator.

The HKJC was strongly opposed to an increase in betting duty rates, which it reiterated are already the highest in the world and could create irreversible damage to its business model and will benefit illegal and offshore betting operators.

The operator also said that the increase will be at the detriment of its charity arm, as it won’t be able to commit to its current standard of donations on a consistent basis.

The HKJC has vowed to continue its existing level of donations to local charities, totalling HK4.5bn in 2021-22.

Nevertheless, the HKJC said it understood the government’s rationale behind the decision as the country tries to recover economically and socially from the Covid-19 pandemic.

In a statement, the HKJC said: “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 horseracing which stands at 72.5%-75%.

“Moreover, we need the support of the government for the club to bring in more simulcast and world-pool opportunities.

“Furthermore, we also request the government to commence a review on the licensing conditions imposed on football betting, with a view to giving the club the much needed flexibility and competitiveness to respond to the ever-increasing competitions and challenges from illegal and offshore betting operators, and to mitigate the impact of the decrease in revenues due to the additional football betting duty payment,” the operator concluded.