Loosening the Rules: Basketball Betting on the Horizon for Hong Kong
Hong Kong Considering Introducing Basketball Betting to Address Financial Shortfall
Hong Kong is considering a groundbreaking move to legalize wagers on basketball games, jumping on board with Beijing's approval, in hopes of tackling a nearly HK$100 billion (US$12.87 billion) budget deficit.
The Hong Kong Jockey Club (HKJC), the city's sole legal sportsbook, is set to take the reins on regulating all basketball bets, similar to its existing football and horse racing betting operations. Unlicensed basketball betting currently runs rampant in Hong Kong, with unregistered operators racking up a staggering HK$350 billion (US$44.8 billion) in wagers in 2023 [2][5].
The Hidden Figures
According to Hong Kong Jockey Club (HKJC) CEO Winfried Engelbrecht-Bresges, approximately 15% of unlicensed gambling in Hong Kong, or around HK$52.5 billion (US$6.67 billion), is attributable to basketball betting alone—a significant market that the HKJC aims to tap into with legalization [3]. If the legalization goes through, Engelbrecht-Bresges believes the HKJC could attract up to 60% of current basketball bettors, diminishing the power of underground bookmakers.
Macau's Role and the NBA's Expansion
Alongside Hong Kong, Macau is also looking into allowing the HKJC to operate a regulated basketball betting market. Should this proposal come to fruition, it could pave the way for increased collaboration between legal betting and the National Basketball Association (NBA) [4].
In a sign of things to come, Sands China has already secured a five-year agreement to host two NBA preseason games annually in Macau [4]. This partnership between the NBA and Macau could serve as the driving force behind a more extensive integration of basketball betting into the legal betting landscape in China.
The Great Debate: Weighing Benefits against Risks
The proposed expansion has garnered backing from key lawmakers, including prominent figures like Adrian Pedro Ho King-hong of the New People's Party and Ronick Chan Chun-ying, the Legislative Council Finance Committee Chairman [3]. Supporters argue that legal basketball betting could offer significant financial benefits, surpassing the current user-pay principles applied to public services [3].
However, there is also concern among gambling rehabilitation experts that legalizing basketball betting could normalize gambling and contribute to a higher risk of addiction [3]. Moreover, some question the moral implications of betting on a sport enjoyed by millions, particularly among young people.
Hong Kong has previously tackled illegitimate sports betting by legalizing football wagering in 2003, imposing restrictions to prevent match-fixing. A similar approach could be adopted for basketball betting to focus exclusive attention on international leagues, such as the NBA [3].
The Path ahead
The Home and Youth Affairs Bureau is expected to consult with the Betting and Lotteries Commission next month, followed by a public consultation lasting six months before any proposal is submitted to the Executive Council and Legislative Council for review [3]. Throughout this process, the future of sports betting in Hong Kong and Macau will be shaped, balancing the benefits of increased tax revenue with concerns about gambling addiction and potential exploitation.
- The Hong Kong Jockey Club (HKJC) aims to tap into a significant market, as approximately 15% of unlicensed gambling in Hong Kong is attributed to basketball betting alone.
- If the legalization of basketball betting goes through, the HKJC could attract up to 60% of current basketball bettors, diminishing the power of underground bookmakers.
- The Hong Kong Jockey Club (HKJC) could potentially regulate basketball betting alongside its existing football and horse racing betting operations.
- Unregistered basketball betting currently runs rampant in Hong Kong, with unregistered operators racking up a staggering HK$350 billion (US$44.8 billion) in wagers in 2023.
- The proposed legalization of basketball betting in Hong Kong could offer significant financial benefits, surpassing the current user-pay principles applied to public services.
- The Hong Kong Jockey Club (HKJC), the city's sole legal sportsbook, is set to take the reins on regulating all basketball bets.
- The National Basketball Association (NBA) could potentially collaborate more extensively with legal betting in China, should the proposals to allow the HKJC to operate a regulated basketball betting market in both Hong Kong and Macau come to fruition.
- Key lawmakers, including Adrian Pedro Ho King-hong and Ronick Chan Chun-ying, have expressed support for the proposed expansion of legal basketball betting.
- There is concern among gambling rehabilitation experts that legalizing basketball betting could normalize gambling and contribute to a higher risk of addiction.
- A similar approach could be adopted for basketball betting as was done for football wagering in 2003, focusing exclusive attention on international leagues, such as the NBA, to prevent match-fixing.
