China's Western Gamble Unravels
Potential Legalization of Basketball Sports Betting in Hong Kong Could Alter China's Governance Over Region
The Asian gambling scene has been abuzz with China's keen interest in shaping the lucrative, legal gambling market. Here's a lowdown on China's latest moves to gain a firm foothold in the west.
Cashing In on Revenue
The latest move that's raising eyebrows is the China-controlled government of Hong Kong considering the legalization of sports betting, particularly on basketball, to beef up their tax revenue. According to the South China Morning Post, this unprecedented Beijing-backed move aims to bridge an estimated deficit of nearly HK$100bn ($12.87bn) through a hefty HK$1.5bn ($193m) in taxes from legalizing basketball betting.
Macau Takes a Giant Step
The Special Administrative Region (SAR) of Macau is reportedly thinking about allowing the Hong Kong Jockey Club to oversee a regulated basketball sports betting market.
A Policy U-Turn
Paul Chan, the Financial Secretary of Hong Kong's government, is said to have flip-flopped on his previous stance against basketball betting. Last year, the HKJC CEO claimed that around 100,000 to 150,00 Hong Kong residents were illegally betting on basketball, racking up over HK$50bn (US$6.4bn). At the time, Chan dismissed the idea of legalizing the market, citing concerns that the young generation would be affected and national betting participation would surge.
However, Chan's upcoming budget, scheduled for Wednesday, is expected to focus on fiscal consolidation strategies, with local media predicting a high likelihood that Macau will legalize basketball betting in 2025.
Slow and Steady Wins the Race
Despite a potential 2025 green light, macaobusiness.com reports that the HKJC might take years to prepare for the launch of the regulated basketball sports betting market. Meanwhile, Sands China has already secured a five-year deal with the National Basketball Association, with two NBA pre-season games slated for Hong Kong each year.
*Sources: *- [1] South China Morning Post: Hong Kong government considers legalising betting on basketball to boost revenues- [2] Investopedia: Macau Gambling Industry - Key Trends for Investors (2022)
- The China-controlled government of Hong Kong is contemplating the legalization of sports betting, specifically on basketball, to boost their tax revenue, looking to bridge an estimated deficit of nearly HK$100bn, with a projected HK$1.5bn in taxes from legalizing basketball betting.
- The Special Administrative Region (SAR) of Macau might allow the Hong Kong Jockey Club to oversee a regulated basketball sports betting market, potentially influencing the finance and business sectors.
- Political shifts are underway in Hong Kong, as Financial Secretary Paul Chan has reportedly flip-flopped on his previous stance against basketball betting, with local media predicting a high likelihood that Macau will legalize basketball betting in 2025.
- The HKJC may take several years to prepare for the launch of the regulated basketball sports betting market, while Sands China has already secured a five-year deal with the National Basketball Association, bringing NBA pre-season games to Hong Kong each year.
- The growth of legal gambling in China, as seen through the potential legalization of basketball betting in Hong Kong and Macau, could have far-reaching implications for the sports world, with the National Basketball Association (NBA) and basketball sports betting markets looking to capitalize on this trend.
