Hong Kong’s government is considering legalizing basketball betting as part of its strategy to address the city’s growing fiscal deficit, which is estimated at nearly HK$100 billion ($12.9 billion).
If implemented, the move could generate substantial revenue, potentially adding over HK$26 billion ($3.3 billion) in government income, based on the 50 percent duty currently levied on football betting.
This development was first reported by the South China Morning Post on Monday, just two days before Financial Secretary Paul Chan Mo-po’s annual budget speech.
According to sources, the government is considering expanding the Hong Kong Jockey Club’s (HKJC) betting offerings to include basketball, thus increasing revenue from betting duties.
As reported earlier by AGB, the city’s deepening fiscal shortfall has led to growing calls for the expansion of legalized sports betting. Key stakeholders have advocated for new measures to boost government revenue, with a particular focus on adding more sports options to the betting menu.
The Hong Kong government is set to unveil its new budget on February 26th (Wednesday), a plan that has already attracted considerable public interest. Among the proposals is a suggestion from Heung Yee Kuk, a council representing the New Territories’ interests, calling for the legalization of basketball, snooker, and tennis betting. This request echoes previous calls by lawmaker Adrian Ho.
Winfried Engelbrecht-Bresges, Chief Executive of the Hong Kong Jockey Club, has also expressed support for NBA betting, should the government approve it. He emphasized the significant potential of legalizing basketball betting to capture a large share of the current illegal betting market. Engelbrecht-Bresges estimates that up to 60 percent of the 150,000 Hong Kong punters currently engaged in illegal basketball betting could shift to legal platforms.
The surge in illegal sports betting over the past five years has been largely driven by digitalization and the rise of cryptocurrency, with many punters turning to offshore accounts, particularly during the COVID-19 pandemic. Engelbrecht-Bresges reports that approximately 560,000 Hong Kong residents used illegal bookmakers last year, with 100,000 to 150,000 of them betting on basketball. Legalizing basketball betting could redirect many of these bettors to the HKJC, reducing the influence of illicit platforms.
The illegal sports betting market in Hong Kong is estimated to have a turnover of around HK$350 billion ($45 billion), with basketball accounting for approximately 15 percent of that total. If legalized, basketball betting could generate an estimated turnover of HK$52.5 billion ($6.7 billion), making it comparable to football betting revenue within the HKJC.
However, Engelbrecht-Bresges cautioned that significant infrastructure investment would be needed to establish basketball betting. He estimated the setup costs could range from HK$1.5 billion (US$191.7 million) to HK$2.5 billion ($319.6 million). Additionally, he predicted that the legislative process to legalize basketball betting could take up to 18 months, similar to the timeline for the introduction of football betting legislation.
