Hong Kong Chief Executive John Lee Ka-chiu has defended the government’s decision to suspend the planned launch of basketball betting, stressing that authorities must ensure all associated risks are fully controlled before proceeding with any expansion of legal gambling.
Speaking ahead of a weekly Executive Council meeting, Lee said the policy had never been intended to encourage gambling activity and that a cautious approach was necessary given recent market developments. “It is the right approach to be cautious, because we never encourage gambling,” he said, adding that officials must carefully assess risks before moving forward.
The government last week confirmed it would halt the rollout of basketball betting, which had been scheduled for September, in a move that marked a significant reversal of earlier plans. The decision comes amid the rapid growth of cryptocurrency-based prediction markets, which allow users to trade on the outcomes of future events. Lee noted that prediction markets have expanded faster than anticipated, citing a 130 percent increase in activity over the past two years, with growth continuing to accelerate. He warned that such platforms, which combine speculative trading with virtual assets, could have a material impact on Hong Kong’s regulated gambling landscape.
According to Lee, around 40 percent of prediction market activity is linked to sports events, a trend he described as concerning. He said the government must continuously review developments in the sector to mitigate potential risks, warning against proceeding with new betting products without fully understanding their implications.
“If we do not seriously look at the risk it will create, it is not the right thing for the bureau to just blindly go ahead,” he said. Lee did not provide a timeline for when, or if, a basketball betting license might be issued.
The suspension represents a setback for the Hong Kong Jockey Club, the city’s sole legal betting operator, which had been preparing to launch basketball wagering. The club had reportedly earmarked HKD1 billion ($153.2 million) for the initiative, including HKD400 million ($51 million) already spent on preparatory work and a further HKD600 million ($76.6 million) planned for infrastructure. The operator is now expected to redirect part of that investment toward upgrading its football betting systems and strengthening efforts to combat illegal gambling.
Lee acknowledged the Jockey Club’s longstanding role in providing regulated betting channels, including horse racing, football wagering and the Mark Six lottery, as well as its contributions to charitable and community initiatives. He expressed confidence that the operator would continue to deliver its existing services effectively. The basketball betting proposal was first introduced by Financial Secretary Paul Chan Mo-po in the 2025 budget, with the aim of expanding legal betting options and curbing illegal market activity. A public consultation conducted in April showed strong support, with 94 percent of respondents backing the initiative.
Legislative backing followed in September with the passage of the Betting Duty (Amendment) Bill 2025, which granted the Secretary for Home and Youth Affairs the authority to issue licenses for basketball betting under specified conditions. However, Home and Youth Affairs Secretary Alice Mak Mei-kuen said the decision to pause the launch was made solely by the government after assessing local conditions, the prevalence of illegal betting and the rapidly evolving external environment.
