Taxation and competition from its own soccer betting will drive the Jockey Club to actively seek international markets for Hong Kong racing this year. The Club is planning to launch its product and its pools, and especially the Triple Trio, for world consumption, with the promise of billions in additional betting turnover.
The new approach was revealed by director of racing Winfried Engelbrecht-Bresges as he today celebrates five years with the Club. 'In the mid-1990s, the Hong Kong government introduced certain arrangements to give tax relief for exported products,' Engelbrecht-Bresges said.
'It applies exclusively to exports, so that bets coming into our own pools from overseas punters would attract lower taxation. We would then be able to use part of the money we would not be required to pay in local tax to offer a kind of agent's commission in the country where the bet originates.'
Engelbrecht-Bresges stressed that such arrangements would not run contrary to either the letter or the spirit of the much-vaunted Good Neighbour Policy championed by the Club throughout Asia to fight offshore poaching of turnover.
'This would fit into the Good Neighbour Policy, as one can say there is a benefit for both jurisdictions - jurisdictions which are prepared to be good neighbours,' he said, but added an ominous warning. 'Theoretically, you could also turn it the other way and say those who do not sign the Good Neighbour agreement and are not willing to respect intellectual property rights . . . well, looking after our own markets then one really might have to think about competing.'
Engelbrecht-Bresges said the overseas demand for Hong Kong's racing 'product' was very broad. 'We have had many discussions with people asking for our product - for our racing picture and especially for access to our huge betting pools,' he said. 'One of our advantages, besides the integrity, the quality of information and the competitiveness of our racing, is our pool size.'