The Threat of Illegal Betting Markets to the Horse Racing Industry

A Major Concern for Asian Racing

Citibet, an online betting platform operating primarily in southern China, has emerged as a significant threat to the horse racing industry in Asia.

Handling an estimated $50 billion in gambling turnover annually, Citibet’s activities are on par with legal betting markets.

The Asian Racing Federation’s (ARF) anti-illegal betting task force estimates that Citibet accounts for approximately 25% of the legal turnover in Hong Kong’s horseracing sector.

Lack of Transparency and Integrity Risks

One of the most alarming aspects of Citibet’s operation is its lack of transparency.

Unlike regulated betting exchanges, Citibet allows users to place bets on horses to lose, creating an environment ripe for match-fixing and spot-fixing.

The platform operates covertly, refusing to cooperate with racing authorities, which seriously compromises the fairness and integrity of horse racing.

This secrecy and lack of oversight enable unethical practices that could undermine the sport’s credibility.

Economic Impact on Legal Betting Markets

The appeal of illegal platforms like Citibet lies in their ability to offer higher returns to bettors.

By bypassing taxes and regulatory fees, these operators provide more attractive odds, drawing bettors away from legal markets.

This shift not only threatens the financial stability of legal betting operators but also deprives the horse racing industry of essential funding.

Revenues generated from legal betting are crucial for maintaining horse welfare, supporting racing infrastructure, and funding other critical areas of the sport.

The Role of Technology in Facilitating Illegal Betting

The rise of technology has exacerbated the problem, making it easier than ever to establish illegal betting operations.

According to James Porteous, senior due diligence & research manager at the Hong Kong Jockey Club (HKJC), the low cost of entry—sometimes as little as a few thousand dollars—allows these illegal operators to mimic the betting experiences provided by regulated companies.

The lack of regulatory oversight and ethical considerations further enables these entities to operate with impunity, posing a significant challenge to the industry.

Preserving the Integrity of Horse Racing

Porteous emphasizes the seriousness of the situation, noting that the ease with which illegal bookmakers can be set up is deeply concerning.

Without regulatory and ethical constraints, these operators can continue to flourish, undermining the integrity of horse racing.

Combating this issue requires coordinated efforts from industry stakeholders, regulators, and law enforcement to protect the sport and ensure its long-term viability.