Hong Kong Legalizes Basketball Betting. What Does It Mean for the HKJC?

New Law Grants HKJC Exclusive Rights to Basketball Betting

The Betting Duty (Amendment) Bill 2025 passed its third reading in the Legislative Council with 77 votes in favour, two against and two abstentions. It authorizes the Secretary for Home and Youth Affairs, Alice Mak Mei-kuen, to issue an exclusive basketball betting license to the Hong Kong Jockey Club (HKJC), the city’s sole legal gambling operator.

The first regulated wagers are expected in September 2026, coinciding with the start of the NBA pre-season. Basketball betting will follow the same model introduced for football in 2003, with a 50 percent duty on net stake receipts. Credit betting and wagers on local matches will remain prohibited.

According to Mak, the purpose of the reform is not to promote gambling but to channel existing demand into a legal and controlled environment. “Providing legal channels is a way to satisfy the public demand for certain kinds of betting and prevent them from turning to illegal operators,” she told lawmakers. “We will not stop here. To combat illegal gambling, we will continue educational and promotional efforts, as well as conduct tough enforcement actions.”

A Response to Illegal Offshore Betting

The government estimates that illegal basketball wagers totalled between HK$70 billion and HK$90 billion in 2024, involving around 430,000 residents. Police recorded between 5,000 and 7,000 arrests annually for illegal gambling in recent years, highlighting the scale of the problem.

Lawmakers backing the bill argued that legalisation would help redirect this activity into regulated channels. “Illegal gambling platforms have become omnipresent in society through the internet. It’s very easy to be exposed to them with a mobile phone in your hand,” legislator Nixie Lam said during the debate.

Finance-sector lawmaker Ronick Chan called the reform “a way to create a more transparent and responsible gaming environment,” stressing that strong enforcement will be key. Supporters said the new framework provides authorities with better tools to monitor gambling activity and protect consumers while contributing to public revenue.

Economic and Fiscal Context

The introduction of basketball betting comes at a time when Hong Kong is facing ongoing fiscal deficits and a slowing property market. Financial Secretary Paul Chan Mo-po first floated the idea in his February 2025 budget, projecting annual tax revenues of HK$1.5 billion to HK$2 billion from the new betting vertical.

As Bloomberg noted, Hong Kong’s government is under pressure to plug an expected HK$67 billion deficit this year. Allowing basketball betting may not be a “slam dunk,” but policymakers hope it will ease fiscal strains while helping the city’s largest taxpayer – the HKJC – maintain its financial stability.

The Jockey Club, which generated a racing turnover of HK$138.85 billion in the 2024/25 season, has seen declining engagement from younger demographics. CEO Winfried Engelbrecht-Bresges has warned that an aging fan base threatens long-term sustainability. The legalization of basketball betting could attract younger bettors and diversify the club’s revenue sources, offsetting stagnation in horse racing.

Bloomberg also reported that the HKJC has been offloading up to US$1 billion in private equity holdings to secure liquidity. For a club that contributes significantly to public welfare and taxation, basketball betting represents both a commercial opportunity and a strategic necessity.

Social Concerns

Despite strong legislative backing, the bill has drawn criticism from those worried about its social consequences. Education-sector lawmaker Chu Kwok-keung argued that legalisation may “simply open one more avenue for gambling,” recalling that football betting had expanded the gambling population rather than reducing illegal activity.

“The government should crack down on illegal gambling, not compete with criminal syndicates for profits,” said legislator Tik Chi-yuen, who also voted against the bill. “Illegal betting is harmful, and legal betting is also harmful. Legalising basketball betting will not make it rosier.”

The Home and Youth Affairs Bureau maintains that the proportion of people aged 18 or below seeking help for gambling problems has remained low over the past decade. Nevertheless, Mak announced that a new counselling centre under the Ping Wo Fund will be established to educate young people about the risks of gambling.

Connie Lam, another legislator, called for betting limits for players aged 18 to 25, suggesting monthly caps between HK$500 and HK$1,000. “We must not underestimate the appeal of basketball to young people,” she said.

HKJC Prepares for Launch

The Hong Kong Jockey Club welcomed the passage of the law, pledging to uphold responsible gambling standards and assist the government in combating illegal betting. In its earlier statement, the Club said that extending regulation to basketball would “support the government’s efforts to combat illegal gambling, while ensuring continued contribution to the community through charitable donations and tax revenue.”

The operator will apply its established compliance framework from football betting to the new vertical. Systems development is already underway, with technical preparations expected to take about a year. The rollout will likely align with the start of the 2026/27 NBA season.

Importantly, betting will be restricted to overseas games, meaning the NBA will be the primary focus. Credit card payments will not be accepted, a rule intended to reduce financial risk and impulsive wagering.

Public Backing

A public consultation conducted by the Home and Youth Affairs Bureau found that 94 percent of 1,063 respondents supported regulated basketball betting. The government says this level of consensus demonstrates a pragmatic public attitude toward controlled gambling.

The legalisation of basketball betting also fits into a broader shift in Hong Kong’s gambling policy. The city plans to expand the number of foreign horse races simulcast each season, further reflecting the role of betting in sustaining public finances and sports funding.

Officials stress that the reform is about regulation, not expansion. Its long-term impact, however, will depend on whether Hong Kong can curb illegal betting without fuelling broader gambling participation.