The Hong Kong Jockey Club is discussing with authorities for basketball betting to be legalised as soon as September, so punters will be able to gamble on games during the NBA season, the Post has learned. But it would take another three to four years before basketball betting could rake in HK$1.5 billion (US$192.9 million) in tax revenue per year, a source said on Friday, adding that gambling would only be available online and not at the club’s outlets.

The revelation came two days after Financial Secretary Paul Chan Mo-po announced in his budget speech that the government was considering legalising basketball betting to tackle illegal gambling, and the Jockey Club, which hosts betting on horse racing and football matches, said it would submit a proposal.

Hong Kong recorded a fiscal deficit of HK$87.2 billion for the 2024-25 financial year. The Jockey Club estimated that the turnover for illegal basketball betting reached HK$70 billion to HK$90 billion last year. The insider said the club met government officials on Friday morning to discuss the issue of legalising basketball betting.

The source said that if the bill were to be passed before September, residents would be able to place their first basketball bets for next year’s NBA season, which usually starts in October.

The club had previously estimated that duties on basketball betting could allow the government to earn around HK$1.5 billion every year. However, that estimate was revised by the source, who said the club would only be able to make that amount “after three to four years” because the betting would only be available during the sporting season and “the public needs time to familiarise with the betting system”.

The source added that “another HK$1 billion to HK$2 billion” of investment capital would be needed to “develop the betting system”, as the club might “make losses in the first few years”.

The source said the Jockey Club would focus on rolling out betting for National Basketball Association (NBA) games, which were popular among illegal bookmakers and gamblers. He said legalising basketball betting was expected to draw 30 to 40 per cent of illegal gamblers back into legal channels – a figure similar to that for football betting.

To expedite the legislative process, the proposed laws for basketball gambling would be similar to those for football betting, which was legalised in 2001. Similarly, a 50 per cent duty would be charged on net receipts derived from authorised betting on basketball matches.

“Those laws have been accepted and acknowledged by society for the last two decades,” the insider said. “Essentially, the word ‘soccer’ mentioned in the legislation will be changed to ‘basketball’.”

Jockey Club CEO Winfried Engelbrecht-Bresges said in a media interview last year that 100,000 to 150,000 punters used illegal bookmakers to bet on basketball. 

According to its financial report for 2023-24, the Jockey Club made HK$304.9 billion from various forms of betting in the last financial year, with HK$136.1 billion from horse racing, HK$160.3 billion from football and HK$8.6 billion from the Mark Six lottery.

The club contributed HK$28.6 billion in taxes, about HK$13 billion of which came from race betting duties, HK$2.1 billion from the lottery, and another HK$10.5 billion from football.

The insider said the club pushed to legalise basketball betting as it was the third most popular sport among illegal gamblers, after horse racing and football.

Illegal betting on sports such as Formula One racing lagged by a large margin, he said, adding that the club did not expect other types to be legalised any time soon.

The club’s contribution to the Ping Wo Fund, a body set up by the government to help gamblers, would increase from HK$45 million to HK$50 million in the next financial year, the insider said.

The club would also roll out educational campaigns against gambling addiction, including financial literacy workshops, ahead of the proposed legislation, he added.

Billy Wong Wai-yuk, executive secretary of the NGO Hong Kong Committee on Children’s Rights, said she found the proposed timeline unacceptable. “Gambling issues require in-depth discussion from all parts of society, such as a public consultation and submissions of different opinions,” she said. “Trying to pass the bill by September is too rushed, this is not how a responsible government should act.”

She added that most of the discussions on legislating basketball betting focused on how much revenue it could bring to the government, but left out how gambling addiction could affect society.

“More addicts will approach counselling services which are already overwhelmed with insufficient resources. Youths interested in basketball will be exposed to betting, and they might try to earn pocket money in illicit ways so they can bet,” she warned.

“Is there a need for the government to create more problems for society, especially when mental health issues are on the rise?”

While lawmaker Adrian Ho King-hong supported legalising basketball betting, he said the Jockey Club was too optimistic about its proposed timeline and had trivialised legislative procedures by expecting the bill to pass by September.

“They can take the previous law as a blueprint but they shouldn’t think that they can pass a new bill so quickly just by changing a few words. Do you think Legco is child’s play?” Ho said, adding that there were many more important bills relating to social welfare waiting to be discussed. “The Jockey Club should check its ego at the door and follow the process instead of getting ahead of everything that is more important.”