Basketball Betting Could Bring Billions In Tax Revenue To Hong Kong

Officials in Hong Kong are discussing the possibility of legalizing basketball betting to tap into an estimated HK$52.5 billion ($6.7 billion) market. The move could help address the city’s HK$100 billion ($12.9 billion) fiscal deficit while also tackling illegal gambling, according to a source who spoke to the South China Morning Post.

Illegal sports betting in Hong Kong reached HK$350 billion in 2023, with basketball wagers making up 15% of that amount. If taxed at 50%, the same rate as football betting, the government could collect billions in additional revenue.

If approved, the change would allow the Hong Kong Jockey Club (HKJC) to expand its sports betting operations. HKJC CEO Winfried Engelbrecht-Bresges estimates that between 100,000 and 150,000 Hong Kong bettors place basketball wagers through illegal channels. He believes that legalization could shift up to 60% of these bettors to legal platforms, generating new tax income.

Finance chief Paul Chan Mo-po has expressed hesitation about expanding legal gambling. Speaking at a budget forum last March, he said, “Legalizing additional gambling for the purpose of raising government revenue, I am really hesitant. I don’t think this is the right direction.” He also warned that it could send the wrong message, particularly to younger people.

Hong Kong’s budget speech is set to take place in two days, which may provide more details on the government’s stance on basketball betting.

Macau has allowed basketball betting since 2000 through Macau Slot, a government-franchised operator. In 2024, basketball betting in Macau brought in 215 million patacas ($28.4 million), ranking third behind football betting and casino gaming.

Interest in basketball has also grown in the region. In December, Sands China signed a multimillion-dollar deal with the NBA to bring preseason games back to Macau, marking the NBA’s return to China after five years.