Hong Kong Eyes Basketball Betting to Curb Budget Deficit

• Hong Kong is considering legalizing basketball betting to help offset its nearly $12.8 billion budget deficit, with strong backing from Beijing.
• The Hong Kong Jockey Club (HKJC) would regulate all wagers, similar to its existing football and horse racing betting model.
• Unlicensed basketball betting is widespread, with unlicensed operators handling an estimated $6.7 billion in wagers in 2023.
• Macau is also exploring legal basketball betting, potentially allowing HKJC to operate a regulated market.
• Government officials will conduct a six-month public consultation, with final decisions expected to shape the future of sports betting in the region.

HONG KONG – Hong Kong is considering a major shift in its gambling policy by legalizing sports betting on basketball. This move, aimed at generating much-needed government revenue to battle budget deficit of nearly HK$100 billion (US$12.87 billion), is backed by Beijing and there is a “high likelihood” that Macau will also follow suit.

Hong Kong’s financial secretary Paul Chan Mo-po is exploring various fiscal strategies ahead of Wednesday’s budget announcement. Current estimates suggest that legal NBA betting and wagering on other basketball leagues could generate over HK$1.5 billion (US$193 million) annually in tax revenue.

Hong Kong’s sole legal sportsbook, the Hong Kong Jockey Club (HKJC), currently offers wagering only on horse racing and football. Reports suggest that if basketball betting is approved, it would follow the same model, with all wagers placed under a regulated system through the HKJC.

Unlicensed Basketball Betting a Growing Concern

Sports betting remains rampant in Hong Kong, with unlicensed operators handling an estimated HK$350 billion in wagers in 2023. According to HKJC CEO Winfried Engelbrecht-Bresges, basketball betting accounted for approximately 15% of this total—around HK$52.5 billion.

He estimates that between 100,000 and 150,000 Hong Kong residents bet on basketball through unregistered channels. If legalized, Engelbrecht-Bresges believes that the HKJC could attract up to 60% of these bettors, significantly reducing the influence of underground bookmakers.

Macau’s Role and NBA Expansion

In addition to Hong Kong’s potential legalization, Macau is reportedly considering allowing the HKJC to operate a regulated basketball betting market. Government officials have hinted at a policy shift, with expectations that legislation could be introduced this year.

However, even if the reform is approved, sources suggest it could take years for the HKJC to implement a regulated basketball betting market fully.

Meanwhile, Sands China secured a five-year agreement with the National Basketball Association (NBA) to bring two preseason games per year to Macau. Signaling increased collaboration between legal sports betting in China and the world’s premier basketball league, it’s safe to say movement ahead is imminent.

Lawmakers and Public Consultation

The proposed expansion has drawn support from key lawmakers, including Adrian Pedro Ho King-hong of the New People’s Party. Legislative Council Finance Committee Chairman Ronick Chan Chun-ying also acknowledged that legal sports betting expansion could provide greater financial benefits than current user-pay principles applied to public services.

Before anything changes, the Home and Youth Affairs Bureau is expected to consult the Betting and Lotteries Commission next month, followed by a six-month public consultation before any proposal is submitted to the Executive Council and Legislative Council for review.

Despite the potential revenue from sports betting, the expansion raises concerns among gambling rehabilitation experts. These experts warn that legalizing basketball betting could further normalize gambling and increase the risk of addiction.

But Hong Kong previously tackled unlicensed sports betting by legalizing football wagering in 2003, with restrictions ensuring that bets were placed only on overseas matches to prevent match-fixing in local leagues. A similar model could be applied to basketball betting, limiting wagers to international leagues such as the NBA.

While the final decision is yet to be made, momentum is clearly building toward the legalization of basketball betting in Hong Kong and Macau. With government officials and lawmakers weighing both the economic benefits and social risks, the coming months will be pivotal in shaping the future of legal sports betting in the region.

News tags: Adrian Pedro Ho King-hong | Beijing | Brooklyn Nets | Home and Youth Affairs Bureau | Hong Kong | Hong Kong Jockey Club | Legislative Council Finance Committee | Macau | NBA | New People’s Party | Paul Chan Mo-po | Phoenix Suns | Ronick Chan Chun-ying | Sands China | The Venetian Arena | Winfried Engelbrecht-Bresges