Jockey Club hit with HK$12bn soccer bet levy
The Hong Kong Jockey Club will pay a HK$12 billion levy on its football gambling earnings over the next five years, with Financial Secretary Paul Chan saying he needs the cash to improve the government's fiscal situation. Delivering his budget speech on Wednesday, Chan said the special football betting duty of HK$2.4 billion per year would be imposed from the 2023/24 financial year, despite reservations from the club. "We have given due consideration to the intense external competition facing by the local betting business," Chan said, adding that the club had "also undertaken that the proposal would not reduce its commitment to local charities". The minister said the levy was needed to reduce fiscal pressure on the administration, with a predicted deficit of HK$54.4 billion for the coming financial year. In an afternoon press conference, the financial secretary said the Jockey Club has to decide for itself how to pay for the levy, whether by making use of its reserves or cutting cost. In a statement released earlier in the day as Chan was delivering the budget proposals, the club said it had earlier "expressed its views and strong reservation on any increase in betting duty rates, which are already the highest in the world", but added that it understood the rationale behind the additional football betting duty for the coming five years. The club said the levy would inevitably have a significant impact on its donations to the Jockey Club Charities Trust, though the trust would not reduce its donations to the community. "Any permanent hike in betting duty rates will create structural problems irreversibly damaging the club’s successful integrated business model and continued competitiveness, while benefiting only illegal and offshore betting operators," the club said. "Most importantly, such increase will adversely impact on the club’s ability to contribute to the community through our donations to the Hong Kong Jockey Club Charities Trust on a sustainable basis." In the long term, the club added, it wanted to see a critical review of betting duty and a reduction in rates, especially for horse racing. It also called for government support to review licensing conditions on football betting to add "flexibility and competitiveness" in taking on illegal and offshore betting operators, as well as reducing the impact of the levy. The club said it hoped the improving economy would help the government overcome its "temporary and exceptional fiscal challenge" soon. Executive Council convenor Regina Ip, whose New People's Party had called for higher taxes on football betting, rejected the club's claim that it would be left with less money to give to its trust. "For the Jockey Club's complaint, I really don't see the logic. They have not provided any quantitative evidence for their forecast," she said, noting that gambling revenues had been increasing._____________________________
Last updated: 2023-02-22 HKT 16:16 