Hong Kong Considers Legalizing Basketball Bets to Address Budget Deficit

Hong Kong is reportedly considering to legalize bets on basketball. This move would tap into the popularity of basketball in the region and would generate additional funds for the government.

The Government Needs Additional Tax Streams

The South China Morning Post (SCMP) said that Paul Chan Mo-po, Hong Kong’s financial secretary, is eyeing a variety of options to address the significant budget deficit the city is dealing with. He is reportedly considering legal basketball betting as a reliable tool to generate government funding.

For context, Hong Kong is currently facing a budget deficit of approximately HKD 100 billion ($12.9 million).

Under the proposal, the government would allow the Hong Kong Jockey Club (HKJC), which is the sole provider of racing and soccer bets in Hong Kong, as well as the special administrative region’s (SAR) gaming authority.

As mentioned, the HKJC already offers bets on soccer games and horse races, both of which have resonated with sports fans in the SAR. Lawmakers are certain that the legalization of basketball bets would create an additional tax revenue stream that would help Hong Kong tackle its deficit.

Hong Kong Wants to Deal with the Black Market

Hong Kong, like other jurisdictions across the world, is facing increasing pressure from offshore companies. Many markets, including the SAR, have long debated this issue, with many concluding that the best way to fight the black market and prevent money from draining into illicit companies is to provide a legal and regulated alternative.

Experts believe that in Hong Kong there are some 150,000 bettors who place wagers on basketballs via unlicensed operators. They hope that the legalization of basketball betting will succeed in channeling 60% of them toward the legal offering.

Winfried Engelbrecht-Bresges, CEO of the HKJC, believes that people in the SAR bet some $45 billion in 2023, highlighting the severity of the issue. He elaborated that 15% of this was placed on basketball games. Engelbrecht-Bresges therefore believes that legal basketball betting could generate approximately a third of the revenue generated by soccer wagers.

The SAR Seeks to Expand Its Betting Industry

This comes after in January Eric Fok, chairman of the Football Association of Hong Kong, asserted that the SAR can benefit from expanding the gambling framework and allowing residents and visitors to place bets on the outcome of local soccer games.

For context, locals are currently allowed to place bets on international soccer matches but not on ones taking place locally.

Whether Hong Kong will expand its betting industry, however, is uncertain because of mainland China’s harsh stance on betting.