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Murray Bell

Takeover plans off, but Macau to test taking wagers on Hong Kong meetings

The Macau Jockey Club is considering becoming a simulcast venue for Hong Kong racing, with all  wagers being ploughed into the Hong Kong Jockey Club's tote pools.

The two clubs have also agreed  to  stage two races where high-class horses from each centre will compete.  One race will be at Sha Tin and the other at Macau's Taipa track.

At the end of almost 12 months of intense behind-the-scenes negotiations, it is now established that there will be no buyout of the MJC by its Hong Kong counterpart.

And there are no plans for wagering reciprocity.

A well-placed HKJC source said the concept of Hong Kong punters betting on Macau races would be 'virtually impossible', given the number of race days on which the HKJC can operate is limited by legislation.

The clubs made a joint announcement late yesterday, stating that HKJC chairman Ronald Arculli and Macau counterpart Stanley Ho Hung-sun had agreed to what they called 'win-win co-operation plans'.

MJC chief executive Kenneth Liang said everyone at his club was 'very happy' about the developments. 'It's a good result from all the work that both sides have put in over the past year or so,' Liang said. 'The details have yet to be worked out, and it will probably take time - these things are quite complicated - but this is a very good start.'

HKJC officials stayed in the background, allowing Macau officialdom to do most of the talking.

MJC director of racing Ian Paterson described the  deal as 'a great step forward' for both clubs.

'It is probably the best example of a Good Neighbour Policy at work,' Paterson said. 'For Macau, this is tremendous recognition from one of the leading racing jurisdictions in the world.'

The mechanics of having punters in Macau betting on Hong Kong racing, into HKJC pools, have yet to be ironed out. And even when that is done, it will require the approval of both governments.

The potential for simulcasting of  races  is an exciting one for both clubs, as Paterson was quick to acknowledge. 'The simulcasting of Hong Kong races will mean our facilities are used 78 more times a year than at present,' he said.

'At any normal race meeting, prizemoney is the biggest expense so we will have 78 'phantom meetings' offering betting on Hong Kong and without having to pay prizemoney.'

Macau would get a percentage of every dollar bet on Hong Kong races, even though the money would be channelled into the giant Hong Kong pools.

The Hong Kong government provides for taxation incentives for 'export products' and it is this lower level of wagering taxation when overseas countries bet on Hong Kong pools that enables the HKJC to pay commission to the country or region from where the bets originated.

These developments seem to have happened overnight but the whole process began almost a year ago after Macau's betting turnovers had been ravaged by the  the May 2002 Amendment to the Hong Kong Gambling Ordinance.

Legislation theoretically aimed at stopping Hong Kong punters from betting with overseas bookmakers and internet wagering operations had the effect of making it illegal for players here to bet on Macau races.

With Macau turnover being halved overnight, calling the viability of the entire Macau racing industry into question, Ho contacted his Hong Kong counterparts and suggested the bigger brother might want to buy out the struggling Macau business.

However, after the HKJC had created a team to conduct due diligence on Macau's operation, Ho had a brainstorm that turned Macau racing's fortunes 180 degrees in a heartbeat.

He gained government support for the licensing of up to six bookmakers - which the MJC prefers to call betting agents - and Macau's wagering turnover went through the roof, regularly breaking the $100 million mark for a 12-race programme. The old benchmark was $58 million. Suddenly, the MJC was no longer a firesale item.

The feature races will be the first project to be launched, and one source said last night the initial Hong Kong-Macau invitational - to be held in Hong Kong - could take place in January or February.



Clubs plan simulcast bet venture