Hong Kong Officials Dismiss Tax Revenue as Reason for Eyeing Basketball Betting

Hong Kong is considering expanding legal betting options, potentially expanding the region’s very limited sector. While some theorized that the measure is a way for the government to generate more taxes, lawmakers parried by saying that their true goal is to inhibit the black market.

Hong Kong Considers Basketball Betting

Earlier this year, Hong Kong lawmakers put forward a proposal for the legalization of basketball betting. If passed, the measure would amend the Betting Duty Ordinance to allow for the wagering of basketball games.

Hong Kong, for context, has historically been skeptical of expanding its gambling industry. Under the local framework, The Hong Kong Jockey Club serves as a monopoly operator, offering wagers on horse races and soccer, as well as lottery gaming.

If the latest measure is approved, the club could be allowed to add basketball to its roster, answering to a high demand for such products in the region. The plan is to apply the same 50% tax rate on soccer wagers to basketball bets too.  

In addition to that, the proposal calls for enhanced safer gambling measures to shield younger sports fans from the potential dangers associated with gambling.

Tax Revenue Is Not the Reason for Considering Basketball Betting

As lawmakers continued to discuss the proposal, they have come forward to clarify that its main purpose isn’t to create a new source of tax income. According to the Alice Mak, Hong Kong’s Secretary for Home and Youth Affairs, the main purpose of the legislation is to offer a legal alternative that prevents bettors from losing money to the black market.

However, previous submissions received during the public consultation period asserted that betting could be beneficial to Hong Kong, allowing it to tackle its existing budget deficit. Mak rejected this line of thought despite the fact that the government is set to get half of the money from basketball bets.

The Secretary for Home and Youth Affairs was firm that taxation was not among the concerns behind the proposal and that the government does not seek to promote the use of gambling products but rather to provide an outlet where such activities can be conducted without the involvement of illicit parties.

In the meantime, details concerning the potential legalization of basketball have yet to be determined.