Betting reform will let us recoup $24b a year: Jockey Club

Taxing betting profits rather than turnover would enable the Hong Kong Jockey Club to recoup up to $24 billion a year from illegal bookmakers, chairman Ronald Arculli said yesterday. This would return annual racing revenue to about $80 billion.

But in revealing details of proposals to revitalise the sport, Mr Arculli insisted the club would not compete with illegal bookmakers by offering discounts or credit.

It is estimated that illegal bookies rake in between $50 billion and $60 billion a year. The club is confident it can bring 30 to 40 per cent of this into the taxation net if the duty structure is reformed.

'If we do not do anything, our turnover will keep dropping over the next three to four years. The government's betting duty revenue will also fall to about $6 billion,' Mr Arculli predicted.

He was speaking at a media conference at which he welcomed the agreement reached with the government on the Jockey Club's proposed reforms.

The proposals were put to the Legislative Council home affairs panel yesterday for discussion.

According to the government - which levies a 12 per cent tax on standard bets and a 20 per cent duty for exotic bets - the revenue it receives from bets on horse racing declined from $11.2 billion in 1999-2000 to $8.78 billion in 2003-04. It expects this to fall to $6.15 billion by the 2007-08 season.