Hong Kong’s Financial Secretary, Paul Chan Mo-po, proposed exploring the regulation of basketball betting in the latest budget, released on February 26th.
The move aims to combat illegal gambling activities and will involve inviting the Hong Kong Jockey Club (HKJC) to submit relevant proposals.
Local media disclosed the plan earlier this week, noting that it is part of the city’s strategy to address its growing fiscal deficit.
In response, the HKJC has welcomed the initiative and pledged to provide detailed recommendations to the Hong Kong government in the near future, expressing anticipation for the swift implementation of the policy.
The HKJC highlighted the severe social issues stemming from illegal basketball betting, including loan sharking and the enticement of minors into gambling. According to their estimates, the volume of illegal basketball gambling reached approximately HK$70 billion to HK$90 billion ($9 billion-$11.6 billion) last year. Regulating basketball betting is expected to effectively curb the growth of illegal gambling.
Moreover, the move would bolster the government’s efforts to combat illicit gambling, support the HKJC‘s charitable contributions to society, and generate significant tax revenue for the government, ultimately serving the public interest.
Additionally, lawmaker Kenneth Fok Kai-kong – who represents the Sports, Performing Arts, Culture and Publication sector – pointed out the substantial public demand for basketball betting, which is currently being met through illegal channels.
The legislator emphasized the necessity of regulating basketball betting to combat illegal bookmaking and redirect betting revenue into the legal market. Fok anticipates that this could yield at least HK$1.5 billion to HK$2 billion ($193 million-$257 million) in additional betting tax revenue for the treasury annually.
The HKJC is expected to submit a proposal soon, and Fok says he hopes the government will promptly initiate public consultation and legislative procedures. He expressed confidence that the relevant betting programs could be launched before the start of next year’s NBA season.
However, concerns have also been raised. Lawmaker Brave Chan Yung acknowledged the rationale behind the government’s move to regulate basketball betting. However, given basketball’s immense popularity among young people in Hong Kong, with an exceptionally high density of outdoor basketball courts, there are worries that legalizing basketball betting could entice individuals, particularly young people and students who do not typically gamble, to engage in betting and potentially develop addictive behaviors.
Therefore, if basketball betting is legalized, the lawmaker opines that it will be crucial to strengthen “watch basketball, not gamble” campaigns in schools, communities, and families. Fok encourages a multi-pronged approach to address the potential negative consequences of legalizing basketball betting.
