Hong Kong weighs legalising $6.7 billion basketball betting market to boost revenue

Hong Kong is considering legalizing basketball betting to tap into an estimated HK$52.5 billion ($6.7 billion) market, as the government seeks to ease a fiscal deficit nearing HK$100 billion ($12.9 billion), a source familiar with the discussions told South China Morning Post.

The proposal, which could allow the Hong Kong Jockey Club (HKJC) to expand its sports betting operations, comes as authorities explore ways to increase tax revenue while curbing illegal gambling in the city.  

Winfried Engelbrecht-Bresges, CEO of the HKJC, estimates that between 100,000 and 150,000 punters in Hong Kong place basketball bets through illegal bookmakers. He believes that legalization could bring up to 60% of these bettors into legal channels, significantly boosting tax revenue.  

Illegal sports betting in Hong Kong reached HK$350 billion in 2023, with basketball accounting for 15% (HK$52.5 billion/$6.7 billion) of that total, according to Engelbrecht-Bresges. If taxed at 50%—the same rate as football betting—basketball gambling could generate billions in government revenue.  

Despite the potential financial windfall, Hong Kong’s finance chief Paul Chan Mo-po has previously voiced reluctance over expanding legal gambling.  

"Legalizing additional gambling for the purpose of raising government revenue, I am really hesitant. I don’t think this is the right direction," Chan said at a budget forum last March.  

"If we legalized that, it would affect our youth, and in a way, the signal is that the government does not have enough money and we do not mind people gambling with it and we take a cut," he added.

Hong Kong’s potential move follows a regional trend, with Macau legalizing basketball betting in 2000 under Macau Slot, a government-franchised operator.  

In 2024, basketball betting in Macau generated 215 million patacas ($28.4 million), making it the third-largest sports betting category behind football (399 million patacas) and games of fortune (226.8 billion patacas, including casino gaming).

Additionally, Sands China signed a multimillion-dollar deal with the NBA in December to host preseason games in Macau, marking the NBA’s return to China after a five-year absence.  

With Hong Kong’s budget speech scheduled in two days, further details on the government’s stance on legalizing basketball betting may emerge.