IBM will supply the Royal Hong Kong Jockey Club with network infrastructure for on-course cash betting systems and business administration.
The new systems are expected to be in place by the start of the next racing season.
The $17 million deal is part of a wider plan by the Jockey Club to redevelop its information technology infrastructure.
IBM will supply two Ethernet FL/FB based fibre optic networks.
One will link the 3,000 cash betting terminals at Shatin and Happy Valley together and to back-end servers. The other will support the Jockey Club's business administration and office automation functions.
The equipment includes 44 IBM 8260 and 8224 LAN hubs and 2 Netview network management stations. IBM will train Jockey Club operators on the new systems.