Hong Kong lawmakers recently passed a bill that will require the Hong Kong Jockey Club to pay an extra HK$12 billion in taxes on its football betting earnings for the next five years. The amendment to the Betting Duty Ordinance was introduced by Financial Secretary Paul Chan to help improve the fiscal situation of the government. Despite the club’s reservations about the additional levy, lawmakers supported the move via a show of hands.
The new chairwoman of the New People’s Party, Regina Ip, stated that there were limited options for the government to raise taxes and the impact of the tax would only be minimal on the Hong Kong Jockey Club. DAB lawmaker Vincent Cheng also described the tax as a contingency measure and agreed that the club would be able to cope with it.
The Secretary for Financial Services and the Treasury, Christopher Hui, confirmed that the government considered several factors, including the affordability of the move for the club, external competition faced by the local football betting business, and the profit increase of the Hong Kong Jockey Club’s football betting sector compared to horse racing.
Overall, the move is expected to aid the government in boosting its financial position and pave the way for future improvements in the city’s sports betting industry.
