Is football betting cheaper to run than horse racing? Top Hong Kong government adviser says Jockey Club overreacting to proposed tax raise
- Exco convenor Regina Ip doubles down on party’s proposal ahead of coming budget address
- Club had earlier said the suggestion would destroy its business model and jeopardise public interest
A top Hong Kong government adviser has said the Jockey Club had overreacted to her party’s proposal to raise the football betting tax, stressing that she believes unlike horse racing, operations for the former cost much less.
Regina Ip Lau Suk-yee, convenor of key decision-making body the Executive Council, on Sunday also reiterated that there was no need to hand out more consumption vouchers in next month’s budget address, because most people would only spend on necessities that would have little effect on boosting the economy.
New People’s Party, chaired by Ip, last Thursday suggested increasing the football betting duty from 50 to 80 per cent of revenue, a move it said would bring in HK$5.9 billion (US$753 million) for the city’s coffers.
In a lengthy statement issued later that day, the club said the proposed raise might result in a deficit in operations, which would “destroy” its business model and jeopardise public interest.
The club raked in HK$19.7 billion in earnings from football bets in the financial year ending June 30, 2022, compared with HK$19.4 billion for horse racing.
Ip on Sunday defended her party’s proposal on a radio programme, saying she believed there was room for a tax increase because football betting was run at a lower cost.
“In horse racing there are horses to feed and other maintenance works, but in football betting it is just about designing a programme. They should contribute more money to the government,” she argued.
Ip added the Jockey Club was overreacting to her party’s proposal, which was a response to a government consultation ahead of the budget address.