Small bets for pleasure, big bets for financial loss? The Hong Kong government is pushing a key "upgrade" in the gambling industry—the legalization of basketball betting, not only to challenge the underground kingdom of illegal betting on basketball but also to snatch gold from the jaws of Southeast Asian bookmakers.
The Civil Affairs and Culture, Sports and Tourism Committee of the Hong Kong Legislative Council is officially discussing the "Basketball Betting Regulatory System Proposal." Once implemented, this will be the fourth legal gambling option in Hong Kong after horse racing, Mark Six lottery, and football, expected to bring in 1.5 to 2 billion Hong Kong dollars in tax revenue annually.
"The horses keep running": The origin of Hong Kong's gambling culture
Hong Kong's gambling industry has a long history, with horse racing culture at its core. Introduced by British colonizers in 1841, the Hong Kong Jockey Club was established in 1884 and has been the exclusive operator of horse racing gambling for 140 years.
The classic promise "The horses keep running, the dances keep going" was a powerful guarantee of Hong Kong's lifestyle when Deng Xiaoping emphasized "one country, two systems" to British Prime Minister Thatcher. After the 1997 handover, this slogan also became a symbol of Hong Kong's preserved distinctive system.
Expansion of the gambling industry, legal basketball betting imminent
Legal gambling in Hong Kong has long been monopolized by the Jockey Club, covering:
Horse racing
Mark Six lottery
Football betting (introduced in 2003)
Basketball betting may be added in the future
The government is pushing to amend the "Gambling Tax Ordinance," planning to add basketball betting, to be licensed by the Hong Kong Jockey Club and levy a 50% tax on net betting amounts.
Rather than letting huge funds flow into illegal peripherals, the government prefers a "diversionary strike" strategy—turning the black market into a white one.
Grey market thrives: Basketball betting becomes an "underground gold mine"
According to data provided by the Jockey Club and the Legislative Council:
An estimated 430,000 people will participate in illegal basketball betting in 2024, an increase of 186% from last year;
40% of them are youths under 30 years old;
The illegal market size is about 70-90 billion Hong Kong dollars, more than doubling.
These underground betting rings mainly operate through overseas platforms, with servers located in Myanmar, the Philippines, Europe, and other places, often closely linked with grey and black industries such as telecom fraud and usury.
"Basketball betting" has become the most growth-oriented area in Hong Kong's illegal gambling.
Legal gambling generates tax revenue and social value
Taking the legalization of football betting as a reference:
Since its opening in 2003, it has brought over 1.58 trillion Hong Kong dollars in betting amounts into formal channels;
The cumulative gambling tax revenue exceeds 116 billion Hong Kong dollars;
Cases of money laundering, usury, and fraud have significantly decreased.
Data for the 2023/24 fiscal year shows that Hong Kong citizens bet a total of 160.3 billion Hong Kong dollars on football betting, while horse racing betting amounted to 136.1 billion Hong Kong dollars.
The two gambling services together brought a total of 43.1 billion Hong Kong dollars in gambling and lottery revenue to the Hong Kong Jockey Club, of which 28.6 billion Hong Kong dollars were paid to the government in the form of gambling taxes and profit taxes, making it one of the major sources of tax revenue in Hong Kong.
As a non-profit organization, the Hong Kong Jockey Club not only plays a significant role in financial contributions but is also one of the top ten charitable donors globally.
In the past decade, its charitable trust fund has cumulatively donated 50.4 billion Hong Kong dollars to support medical, educational, and community development sectors. Among them, the scholarship program established in 1998 has funded over 1000 local outstanding youths, promoting social upward mobility.
Reform in gambling aims at "blocking and diverting"
The government does not encourage gambling but aims to suppress underground forces through legal regulation:
Legal betting channels increase transparency;
Age restrictions, identity verification, and betting limits can be set;
Revenue is used for social welfare, education, medical care, and other public sectors.
The new regulations are expected to be legislated by September this year and officially take bets from the next NBA season (October), with betting forms likely similar to the current "Football Lottery," including:
Betting methods: win/lose, handicap, over/under, combination bets;
Scope of events: NBA, European leagues, and other international events;
Payment methods: cash betting, real-name verification, credit cards prohibited;
Excluded events: does not involve local Hong Kong basketball events.
Conclusion: Basketball betting, both an expansion and a regulation
This reform reflects the direction of Hong Kong's gambling "limited expansion, active regulation." The goal is not to encourage gambling, but:
To incorporate the vast grey market, weaken illegal platforms;
Protect young people from usury and telecom fraud;
Create new financial sources, giving back to public welfare.
In the future, Hong Kong may continue to explore other types of sports betting (such as tennis, esports), but always revolves around the core concept of **"controlled gambling, benefiting society"**.
