Hong Kong Jockey Club Looking to Change Betting Tax

Filed in archive Betting on December 8, 2004

Jockey Club in talks over changes to betting tax

The Hong Kong Jockey club has seen betting turnover fall from HK$130 million per race in 1997 to HK$90 million per race now and in an attempt to reverse this decline, they are looking at alternative tax solutions.

The Jockey Club is in negotiations with the government on the way horse racing bets are taxed and is confident a change in the system will lead to gamblers pouring money into betting pools, the club's racing director said

Currently, the government takes 12% on all bets - and more on combination bets. Because of this, The HKJC also cannot pay commissions to overseas outlets.

Many see the reason for the decline is because of the poor economic climate, the rise of the internet and betting syndicates that can offer discounts.

The HKJC are looking at the possibility of the government charging tax on profits rather than individual bets, as was done in the UK 3 years ago - arguing this would attract the big punters back and therefore increase dividends paid out.

The jockey club concludes that at best, the UK experience has shown this solution works and government taxes increases - at worst, there will be no change to what the government already receives