Hong Kong Jockey Club Hits Record HK$331.7 Billion Turnover Amid Rising Threats

The global betting industry is looking closely at the Far East as the Hong Kong Jockey Club (HKJC) released its annual results on September 2. The organization handled a record HK$331.7 billion in bets and lottery sales for the year ending June 30, representing a 3.6 percent increase. Despite these staggering numbers, the atmosphere at the annual general meeting was one of caution. The club’s unique model, which funds billions in public contributions, is facing unprecedented pressure from multiple fronts, including offshore competition and heavy taxation.

While betting volumes reached new heights, the total contribution to the community, including taxes and charity donations, rose by only 0.6 percent to HK$39.3 billion. The club highlighted a growing disconnect between turnover growth and the actual surplus available for social causes. High duty rates and the increasing sophistication of illegal bookmakers are eating into the regulated market's margins, creating a challenging environment for the years ahead.

Numbers and facts

Horse racing remained a cornerstone of the club's success, with turnover rising 3.6 percent to HK$143.3 billion. International collaboration was a key driver, as commingled betting from 26 jurisdictions grew by 9 percent to HK$34.3 billion. The World Pool also showed significant momentum with a 23 percent increase. Football betting, however, remains the largest single business segment, generating HK$179 billion in turnover, up 3.6 percent from the previous year. The Mark Six lottery also saw growth, reaching HK$9.4 billion.

However, these volumes are subject to intense taxation. In Hong Kong, racing betting duty can reach 75 percent, and football betting is taxed at 50 percent of the gross margin. These rates are significantly higher than those faced by illegal offshore operators, who often evade taxes entirely while offering a broader range of betting options, including basketball and other international sports.

"The absence of a legal basketball product will leave existing demand in the hands of illegal operators, whose reach has expanded through digital platforms, cryptocurrency and social media." - Official statement from the Hong Kong Jockey Club

Background

The club is also dealing with significant project delays. The planned launch of racing at the Conghua Racecourse in Guangzhou, scheduled for October, has been postponed following an updated risk assessment by Mainland authorities. Conghua is vital to the club's long-term strategy, currently housing over 600 horses with a total capacity for 1,300. Cooperation agreements signed in 2021 and July 2026 emphasize the importance of this regional equine cluster, yet the delay means a slower return on massive investments.

Furthermore, the Hong Kong government has paused plans to grant a license for regulated basketball betting. The HKJC had already invested heavily in technology for a 2026 launch and must now pivot those resources back to football. Meanwhile, racecourse tourism is one of the few bright spots, with 401,259 tourist visits recorded during the season, a 105 percent increase. The Year of the Horse raceday alone drew 98,000 spectators, showing that the physical experience of racing remains a powerful draw despite digital competition.

Why it matters for German players

The situation in Hong Kong serves as a cautionary tale for the German market. When legal offerings are restricted or over-taxed, players often look for alternatives in the unregulated sector. In Germany, the State Treaty on Gambling 2021 (GlüStV 2021) provides a legal framework designed to prevent this by offering a safe environment. Key measures include the 1,000 Euro monthly deposit limit via the LUGAS system and a 1 Euro stake limit for online slots.

Players in Germany should always verify that their chosen provider is on the official GGL whitelist. Just as the HKJC warns against illegal operators using cryptocurrency, German players face similar risks from offshore sites that promise massive bonuses but lack consumer protection. Sticking to GGL-licensed casinos ensures that games are fair, taxes are paid, and player protection measures are strictly enforced.

What it means for GGL-licensed casinos

For operators with a GGL license, the HKJC's experience reinforces the importance of a competitive product range. The club's struggle to secure a basketball license highlights how missing market segments can fuel the black market. German operators must continue to advocate for a balanced regulatory environment that protects players while remaining attractive enough to keep them within the legal system.

The HKJC’s contribution of HK$29.3 billion in taxes, accounting for 6.4 percent of the Inland Revenue Department’s total collection in 2025/2026, demonstrates the immense social value of regulated gambling. German licensed casinos contribute similarly through specialized taxes and social projects. Maintaining this contribution requires the GGL to remain vigilant against illegal competition while ensuring the legal market remains technologically innovative and commercially viable.