Hong Kong government approves HK$12bn football betting tax

The Hong Kong Jockey Club (HKJC) is facing a HK$12bn (£1.2 bn) tax hit after the Legislative Council approved plans for a Special Football Betting Duty (SFBD) lasting for the next five years.

Jockey Club officials had objected to the plan to impose a HK$2.4bn a year tax on its football betting operation when it was proposed earlier this year.

They said that while they understood the rationale of increasing taxes during the post-Covid economic recovery period, they feared the move would damage its business model, which would in turn benefit illegal offshore betting operators. 

Officials also argued that the new tax would have a significant impact on the central purpose of the HKJC, to raise money to be distributed to good causes via the HKJC Charities Trust.

However, the Legislative Council dismissed those concerns and this week voted through the Betting Duty (Amendment) Bill 2023. The legislation includes the imposition of the SFBD for five years, backdated to 1st April 2023, together with the stipulation that all existing betting duty rates will be maintained. 

Christopher Hui, the Secretary for Financial Services and the Treasury, said an agreement had been reached with the HKJC about the level of charitable funding prior to the Bill being passed. 

“The HKJC has undertaken that it would not reduce its commitment to local charities,” he explained. 

Hui added: “The proposal helps increase government revenue in the short term by bringing about a total receipt of HK$12 billion of the SFBD for five years. 

“In proposing to levy the SFBD, we have taken into consideration a number of factors, including the affordability of the HKJC, which is the parent entity of the incumbent football betting conductor, and the external competition faced by the local football betting business.”