After failed efforts last year, Hong Kong is taking another swing at adding basketball betting to its regulated gambling menu. Will the second time be the charm? Here’s a deep dive into the new gambling expansion measure, its projected upsides, and it is facing resistance in some quarters.
Hong Kong’s government is set to examine a proposal that could introduce legal sports betting on basketball, snooker, and tennis. This idea is part of a broader set of 19 recommendations submitted by the Heung Yee Kuk (HYK) for consideration in the city’s budget. Financial Secretary Paul Chan Mo-po will review the suggestions, which align with past calls from lawmaker Adrian Ho on expanded gambling in the Chinese Special Administrative Region.
Founded in 1926, HYK is considered Hong Kong’s longest-standing policy advisory body. It is responsible for shaping governance and policies concerning the New Territories. HYK chairman Kenneth Lau Ip-keung has put forward a bold proposal to establish a government-owned sports betting and investment company. The HYK chair also suggests opening the franchise operation to public bidding as it could bring in stable tax revenues of several billion Hong Kong dollars annually.
Legal betting would cover major international sporting events under this plan, including the National Basketball Association (NBA). The goal is to offer a regulated alternative to underground gambling that is already rife in the region.
The idea of legal NBA betting isn’t entirely new. Winfried Engelbrecht-Bresges, chief executive of the HKJC (Hong Kong Jockey Club), expressed the club’s interest in adding NBA wagers to its offerings had the government approved it in 2024. He estimated that legalization could redirect up to 60 percent of the 150,000 people currently engaging in illegal wagers into a safer, regulated system that would also bring tax revenue to the government.
Winfried Engelbrecht-Bresges also noted that underground betting on football, horseracing, tennis, basketball, and eSports generates an estimated HK$350 billion (US$45 billion) annually. Horseracing and football account for the majority, making up 75 percent. Basketball alone represents around 15 percent.
However, bringing these activities into a legal framework would require significant investment. The chief executive estimated infrastructure costs to be between HK$1.5 billion and HK$2.5 billion. These translate to between US$191.7 million and US$319.6 million. The push for legal sports betting has also gained support from the Hong Kong branch of the Association of Chartered Certified Accountants. This organization backs the idea of adding basketball to the list of approved betting options as it could help diversify and strengthen government revenues.
With the city’s financial outlook in focus, the ACCA warns that Hong Kong could face a fiscal deficit of HK$92 billion (or US$11.81 billion) in the 2024/25 financial year. The move to expand the legal betting scope by introducing basketball wagering could go a long way in addressing the setback. However, there’s a lot of resistance.
In 2024, Hong Kong’s Financial Secretary, Paul Chan Mo-po, rejected Winfried Engelbrecht-Bresges’ idea despite increasing support from political parties advocating for regulation. A South China Morning Post report highlighted his firm stance against expanding gambling laws. Chan remained unconvinced and hesitated to legalize more gambling solely to boost government funds. At that time, he emphasized that he did not see this as the right direction for Hong Kong, and any changes to the city’s gambling policies were unlikely in the near future.
Additionally, Chan Mo-po expressed concerns that legalizing basketball betting could send the wrong message, particularly to younger generations. He suggested that such a move might give the impression that the government is struggling financially and is willing to profit from gambling without considering its social impact.
Meanwhile, Hong Kong’s Democratic Alliance for the Betterment and Progress is among the political groups pushing this change. They argued that legalizing basketball wagering could help tackle illegal gambling while contributing to public revenue. Hong Kong’s Jockey Club also voiced strong support for the proposal.
Party member Frankie Ngan Man-yu highlighted the potential benefits of expanding legal betting options. He pointed out that many people who enjoy wagering on basketball currently have no legal avenues to do so, forcing them to turn to illegal gambling. He argued that the city could provide a safer, regulated environment for bettors and limit underground operators’ influence by allowing the Jockey Club to include basketball in its offerings.
Hong Kong’s Gambling Ordinance grants the Jockey Club exclusive rights to offer betting on horse racing, football, and Mark-6 lottery draws. The ordinance was last updated in 1997. These restrictions have remained in place for decades, but illegal gambling continues to thrive. The problem is pronounced in basketball betting, and underground operators have built a strong presence. Many believe expanding legal wagering options could help curb this issue by providing a regulated alternative.
The HKJC has long urged the government to allow broader betting privileges, arguing that the black market is siphoning off billions in potential revenue. Estimates suggest that illegal operators targeting Hong Kong bettors generate losses of HK$14 to HK$15 billion (US$1.8 to US$2 billion) yearly. This money could otherwise contribute to the city’s economy through regulated betting channels.
HKJC will negotiate with the government over tax contributions from its wagering operations. These discussions follow tax increases introduced under the previous administration led by Regina Ip. The jockey club faced a decline in overall betting turnover, but it still contributed HK$40.1 billion (US$5.16 billion) in tax revenue for the 2023/2024 financial year. HKJC’s board argues that any further tax increases would be unfair.
It points out that its operations are already taxed at some of the highest rates, with horse racing revenues taxed at 75 percent, football betting at 50 percent on net proceeds, and the Mark Six lottery at 25 percent of turnover. HKJC maintains that raising these rates further could put unnecessary strain on its ability to operate efficiently and compete with illegal gambling markets.
HYK has put forward new ideas for the development of the Northern Metropolis. It primarily focuses on building a racing circuit to host Formula One and other high-profile racing events. The goal is to turn the area into a hub for motorsports fans and draw in visitors from overseas and the mainland. HYK also aims to highlight the charm of traditional village culture. A dedicated tourism resource center would be set up to showcase local heritage, while villagers themselves would take on the role of tourism ambassadors.
The decision to expand legal betting in Hong Kong to include basketball could bring major benefits. Heung Yee Kuk, Chairman Kenneth Lau Ip-keung, and other industry leaders have highlighted the many benefits the nation will reap if the tabled regulation is signed into law.
The primary draws are the potential for increased tax revenue and a more competitive market. This move also creates more job opportunities in sports analytics and marketing. Furthermore, experts believe the broader betting scope will boost basketball’s popularity and attract international bettors.
If the proposal advances, it could take around 18 months to complete the legislative steps. This duration is similar to how long it took to introduce football-betting regulations. All eyes are now on the legislators to see through the basketball proposal.
Blackjack
Slots
Roulette
Baccarat
Craps
Poker
