Hong Kong Jockey Club Achieves Record Turnover Amid Expanding Black Market
HKJC reports HK$331.7bn in annual wagering and lottery turnover, driven by international racing pools and new football bet types, even as competition from illegal operators grows.
Key Takeaways
- Hong Kong Jockey Club reported a record HK$331.7bn turnover for the year ending June.
- Horseracing, football betting, and lottery all increased year-on-year, aided by major events and product innovation.
- Illegal operators now cover up to 60 sports, outcompeting the licensed HKJC’s offerings.
- A paused basketball betting licence and high betting duties remain major structural challenges.
- HKJC contributed HK$39.3bn to community and charitable projects amid market and policy uncertainty.
The Hong Kong Jockey Club (HKJC) posted an all-time high in betting and lottery turnover at HK$331.7bn (£31.3bn) for the fiscal year ending in June, up 3.6% year on year. This figure comes as the HKJC faces heightened competition from unlicensed operators and increasing regulatory pressures. Management highlighted a 'challenging and fast-paced environment' but signalled confidence in the club’s strategic focus and financial discipline.
Strong Annual Results Despite Black Market Growth
HKJC’s record turnover demonstrates resilience against a 'huge and growing illegal gambling market,' which management identified as a serious and persistent threat in Hong Kong. Year-on-year growth in both racing and football betting was confirmed, with major events and innovative bet types credited as primary drivers. The club contributed HK$39.3bn to the community during the reporting period, maintaining its high profile in charitable activities.
"Despite having to operate in a most challenging and fast-changing environment, thanks to the success and agile implementation of our long-term strategies we achieved outstanding results both on and off the track." — Winfried Engelbrecht-Bresges, HKJC CEO
Turnover Breakdown: Racing, Football, and Lottery
- Racing: Horseracing turnover was HK$143.4bn, a 3.6% increase. A significant factor was the growth in international commingling, reaching HK$34.3bn—up 9%—from 26 jurisdictions. This accounted for 23.9% of total racing turnover. Club revenue was reported at HK$19.9bn for the vertical.
- Football Betting: Turnover in the football segment also rose 3.6% to HK$179bn. The introduction of new bet types, enabled by the government, played a central role, especially during the World Cup year.
- Lottery: The Mark Six lottery posted a 4.2% year-on-year turnover increase to HK$9.4bn, aligning with the product’s 50th anniversary.
HKJC Contributions and Taxation
The HKJC transferred HK$29.3bn in betting duty and profits tax, an amount equal to 6.4% of all tax collected by the Inland Revenue Department for the Special Administrative Region of China. In addition, HK$39.3bn was distributed to community programmes. The club noted continuing efforts to enhance cost-efficiency across operations.
Challenges From Betting Duty and Regulated Product Scope
The club cited two core structural challenges:
- High betting duties: Tax rates are 75% of gross margin on racing and 50% on football, limiting licensed operator competitiveness.
- Narrow product range: Legal betting in Hong Kong covers only racing and football, whereas illegal operators offer up to 60 sports, including basketball.
"Hong Kong’s high rate of betting duty is eroding the competitiveness of the club’s licensed wagering products...the illegal market on basketball will continue to expand and along with it the social and criminal damage to the community." — Club management statement
Despite investing in a new sports betting platform positioned to deliver regulated basketball betting, deployment has paused after the government delayed licensing and as alternative 'prediction market' models proliferate. HKJC stated it 'fully respects' government decisions but warned that the absence of legal basketball betting coincides with further black market growth.
Product Development and Digital Investment
The club has allocated resources for digital transformation, including customer-facing technology upgrades and the development of a new sports betting platform. This project originally targeted basketball betting but has now pivoted to football, following government policy decisions and regulatory uncertainty.
Board Changes and Leadership
After the 2 September AGM, Kenneth Fok Kai Kong was newly elected as a steward for a one-year term. Bernard Charnwut Chan, Anita Fung Yuen Mei, and Philip K W Lo were re-elected to three-year terms. In June, Jon Knapman, former Chief Commercial Officer of the UK Tote Group, was appointed as head of commingling, underlining HKJC’s ongoing commitment to international pool cooperation.
Competition From Illegal Operators and Regulatory Pressures
The ongoing expansion of illegal gambling remains a principal risk for HKJC, with illegal operators now offering far broader sports betting options. HKJC's reporting again raises regulatory questions around the legal framework for sports betting and the impact of high betting duty rates on channeling demand into licensed operators. HKJC continues to voice concerns that policy delays, such as the basketball licence interruption, drive players to unregulated operators, amplifying risks to both tax revenue and consumer protection.
Strategic Focus in a Changing Market
HKJC’s strategy emphasises both cost control and agility amid regulatory and illegal market pressures. The club aims to maintain community contributions while defending its licensed operations against increasing competition. The year saw significant progress in international cooperation, digital product enhancement, and leadership appointments, positioning HKJC for sustained relevance in the tightly regulated Hong Kong market.
Frequently Asked Questions
What was the Hong Kong Jockey Club's total turnover for the last year?
HKJC's total turnover for the year ending June was HK$331.7bn, reflecting a 3.6% increase on the previous year. This figure encompasses racing, football betting, and lottery operations.
How does HKJC's betting duty compare to other operators?
Betting duty rates in Hong Kong are 75% of gross margin for racing and 50% for football, which management says weakens HKJC’s competitiveness against illegal operators offering lower overheads.
Why was the rollout of basketball betting by HKJC postponed?
The planned launch of basketball betting was paused due to the government's unexpected licensing hold and the rise of prediction markets. As a result, HKJC redirected its new sports betting platform to football.
How much did HKJC contribute to the community in the past year?
HKJC contributed HK$39.3bn to community and charitable programmes during the reporting period, maintaining a strong societal role despite market pressures.
What are the main challenges facing HKJC in the current regulatory environment?
The main challenges are high betting duties and a limited range of legal sports betting products, with illegal operators offering betting on up to 60 sports and the government pausing new products like basketball.
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Marcus Webb
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Marcus Webb covers the deal flow of the gambling industry — operator strategy, M&A, market entries, and product launches from sportsbook rebrands to full platform migrations. The reports name the companies, valuations, and jurisdictions exactly as disclosed and separate the announcement from its market impact. When a group consolidates a brand or a challenger launches into a new state, Marcus Webb explains who gains, who pays, and what closes next quarter.
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