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Jimmy Cheung

Hong Kong people will be able to gamble legally on soccer matches starting next summer after a historic government decision yesterday to grant an exclusive footballing franchise to the Jockey Club.

The controversial move - a last-ditch bid to combat rampant illegal bookmaking - means Hong Kong will join Macau in a soccer betting beach-head next to the mainland, where such gambling remains strictly limited.

Local critics warned that the move would induce more people to bet and questioned if the additional tax benefits would outweigh resulting social problems.

Announcing the decision yesterday, Secretary for Home Affairs Patrick Ho Chi-ping stressed soccer gambling was already prevalent in the illegal market.

He said authorisation was the way to tackle the problem.

'The government can't sit back and do nothing. Certainly education and a more vigorous clampdown are possible. But regulation is the last resort,' he said.

The package approved by the Executive Council yesterday includes:

A single five-year licence for the Hong Kong Jockey Club;

A new Gaming Commission to oversee soccer betting and the Mark Six lottery;

A fund to help problem gamblers and for public education;

Betting only on matches without local teams;

Restricted publicity and under-age betting prohibited;

Fixed-odds with no credit card betting.

The government first floated the need to legalise soccer betting in 2000 amid growing concerns over illegal gambling and soaring budget deficits. Officials said subsequent public consultation and opinion surveys confirmed that there was majority support for lifting the ban.

With the annual turnover estimated to reach $30 billion, Dr Ho said the treasury would reap more than $1 billion each year.

The Great Coalition to Oppose Legalisation of Soccer Betting warned that legalisation would encourage more people to gamble.

The Democratic Party echoed the concerns, saying the social problems would outstrip the tax benefit.

Dr Ho said more people might bet after the relaxation, but dismissed claims they would necessarily become addicted. 'If we do nothing, gambling will become more rampant and the social cost will be even greater.'

To ensure competitiveness, the Jockey Club will be allowed to operate a full range of bets. 'Whatever is offered by illegal bookmakers should also be available [through the Jockey Club],' Dr Ho said.

Jockey Club chairman Ronald Arculli pledged to run soccer betting responsibly. 'The Jockey Club's non-profit-making nature will ensure all profits generated will benefit Hong Kong,' he said.

Officials said the public might be able to place soccer bets as early as next summer.

Dr Ho said he believed lawmakers would support the move after details were made available.



Jockey Club wins soccer betting rights