Hong Kong Approves Basketball Betting With 50% Tax on Wagers

Hong Kong’s Legislative Council has formally legalized basketball betting, approving a measure that will impose a 50 percent tax on net betting turnover—the same rate already applied to soccer wagering.

The Betting Duty (Amendment) Bill 2025 passed its third reading with overwhelming support: 77 lawmakers voted in favor, two opposed, and two abstained out of 83 members present. The legislation empowers the Secretary for Home and Youth Affairs to grant licenses for basketball betting, with the Hong Kong Jockey Club (HKJC) expected to hold the city’s sole license.

Opposition came from Tik Chi-yuen, representing the social welfare sector, and Chu Kwok-keung, from the education sector. Two lawmakers abstained: medical sector representative David Lam Tzit-yuen and election committee member Andrew Lam Siu-lo. Andrew Lam later clarified that he had intended to support the bill but “pressed the wrong button.”

The new framework sets out licensing conditions, taxation rules, and regulatory oversight under the Betting and Lotteries Commission. Home and Youth Affairs Secretary Alice Mak said her office would coordinate with the HKJC to finalize an implementation timeline. She stressed that the reform is aimed at combatting illicit wagering, not at promoting gambling. “Additional resources will be allocated for public education and youth counseling services,” Mak noted.

As part of the rollout, the government also revealed plans to expand the Ping Wo Fund, adding a fifth counseling center dedicated to educating young people on the risks of gambling. The Ping Wo Fund, established by the government, finances prevention and remedial programs for problem gambling.

Debate Balances Revenue Gains and Social Risks

Most lawmakers expressed strong support for the measure, pointing to its potential to divert money from unregulated betting to official channels. Bill Committee Chairman Chan Chun-ying stated that the bill would “redirect funds flowing into the illegal market toward regulated and safer channels,” while at the same time enhancing transparency and boosting government revenue.

During legislative discussions last year, HKJC Chief Executive Winfried Engelbrecht-Bresges highlighted the scale of the black market, saying that roughly 560,000 Hong Kong residents placed wagers with illegal bookmakers, including 100,000 to 150,000 who bet specifically on basketball. Estimates put the illegal sports betting market at HK$350 billion (US$45 billion), with basketball accounting for 15 percent—or about HK$52.5 billion (US$6.7 billion). Legal basketball betting, Engelbrecht-Bresges argued, could generate turnover on par with the Jockey Club’s existing soccer wagering operations.

Still, not all voices in the chamber were convinced. David Lam Tzit-yuen warned against complacency, insisting that “legal does not mean harmless, and regulation does not mean harm reduction,” pointing to the limited success of soccer betting legalization in curbing underground gambling since 2003. Chu Kwok-keung voiced similar concerns, stressing that young people remain especially vulnerable to gambling-related harm.

With the passage of the law, the HKJC is set to expand its dominance in the city’s legal wagering sector, which already includes horse racing and soccer. Beyond betting, the Jockey Club has also been positioning itself as a promoter of horse racing tourism. In October of last year, Hong Kong authorities even floated the idea of loosening age restrictions to permit those under 18 to attend racing events.

By fLEXI tEAM