Hong Kong Jockey Club racing turnover sees slight 3.1% drop to $1.6B in fiscal year 2023/24

The Hong Kong Jockey Club (HKJC) has announced its financial results for the 2023/24 fiscal year, ending June 30, 2024, following its Annual General Meeting (AGM) held on September 4.

Despite facing significant challenges, including a tough macroeconomic climate, the rise of illegal gambling, and growing competition from Macau's casinos, the Club maintained stable turnover while strengthening its global position.

Racing wagering, traditionally a core source of revenue, saw a 9.3% decline in local turnover during the season, as post-pandemic consumer trends leaned toward digital experiences and increased outbound travel. However, the Club's strategic push for international growth partly mitigated this decline.

Commingled turnover on Hong Kong races rose by 13.7% to HK$28.8 billion ($3.69 billion), accounting for 23.7% of local racing turnover. Furthermore, the Club expanded its World Pool and simulcasting initiatives, resulting in an 8.7% increase in turnover from overseas races to HK$12.8 billion ($1.64 billion).

Despite these efforts, overall racing turnover for the season still fell by 4.5% to HK$134.7 billion ($17.28 billion). For the fiscal year, total racing turnover declined by 3.1% to HK$136.1 billion ($17.46 billion).

Football wagering, however, hit a record high, reaching HK$160.3 billion ($20.56 billion), a 2.2% increase over the previous year. Innovations like 24-hour operations and new betting products such as Same Game All Up and Early Settlement contributed to this growth. Still, the introduction of a HK$2.4 billion ($0.3 billion) Special Football Betting Duty significantly impacted the Club’s income, causing football revenue to drop by 16.6% to HK$8.1 billion ($1 billion).

Mark Six, the Club's lottery offering, also experienced growth, with turnover increasing by 13.3% to HK$8.5 billion ($1.09 billion), driven by refinements to the jackpot reserve model that allowed for more and higher jackpots.

In total, the Club's turnover for FY2023/24 remained flat at HK$304.9 billion ($39.11 billion), but its net margin declined by 10.5% to HK$14.8 billion ($1.9 billion), largely due to the full-year impact of the Special Football Betting Duty. Nevertheless, the Club contributed a record HK$40.1 billion ($5.14 billion) to the community, including HK$29.9 billion ($3.84 billion) in taxes and betting duty and HK$10.2 billion ($1.31 billion) in charity donations.

Chairman Michael Lee reaffirmed the Club's dedication to its social mission: "The Club will continue to invest and, if necessary, make use of its reserves, both to ensure the Club’s long-term future and to uphold our commitment to the community."

Michael Lee

Winfried Engelbrecht-Bresges, Chief Executive Officer, stated: “Having taken everything that the pandemic had to throw at us, we have had to contend with an extremely challenging macro-economic environment as well as significant changes in customer behavior. Despite this, the Club has continued to deliver outstanding racing entertainment and the strongest support for our community.”

On the international stage, the Club enjoyed a standout season, welcoming 32 overseas runners to prestigious races in Hong Kong and celebrating Hong Kong horses' victories in top international races, including the Al Quoz Sprint in Dubai and the W.S. Cox Plate in Australia. Hong Kong’s racing excellence was further highlighted by its presence in the global rankings, with all 12 of its Group 1 races featured in the World's Top 100 Group 1 Races.

Winfried Engelbrecht-Bresges

Looking ahead, the Club aims to strengthen its position as a global hub for racing by enhancing its World Pool offerings and advancing customer engagement strategies. It has launched new digital initiatives, including a 360-degree data platform and a customer value management system, to better connect with younger generations.

The AGM also saw the re-election of four stewards to the Board, with Michael Lee continuing as Chairman and Martin Liao as Deputy Chairman for the 2024/25 term.

Its Charities Trust approved a record HK$10.2 billion ($1.31 billion) in donations to support 173 projects, addressing key issues such as elderly care, youth development, intergenerational poverty, and mental health. The Club also launched the Institute of Philanthropy, a new initiative aimed at tackling large-scale global challenges such as epidemic preparedness and climate change.

The Club’s vision extends to mainland China, where its Conghua Racecourse in Guangzhou is set to begin racing in 2026. Preparations, including the construction of a new grandstand, are underway to establish the site as a center of equine excellence for the Greater Bay Area.

However, the Club warned of the rising threat of illegal gambling, which expanded significantly during the pandemic. HKJC estimates that illegal turnover in Hong Kong now exceeds legal betting. The Club emphasized the need for government action to address this issue and suggested that extending the Club’s sports betting license could help counteract the growth of illegal markets.