It has also hired a top American consultancy firm to look at how both the Sha Tin and Happy Valley racecourses can be refurbished to provide the best possible facilities for owners, club members and the public.

Winfried Engelbrecht-Bresges, who took over the top post on February 1, said the club - as the only legal outlet for gamblers - had for too long suffered from bad publicity.

"But this ignores the fact the club touches the lives of about a third of the population through its charitable work and its social services," Engelbrecht- Bresges said.

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On the gaming front, he pointed out there are 1.4 million people who hold racing or football betting accounts with the club, or about 35 percent of the adult population.

"When you add those who dabble on the March Six lottery, this figure surges past three million - or close to 70 percent of the adult population.

"Yet we are being prevented from enlarging our off-course betting centers or setting up new and better ones to provide these people with more comfortable surroundings because we are being portrayed as gambling establishments."

Engelbrecht-Bresges said on an average race day there are about 30,000 people on the racecourse, but another 500,000 visit off-course betting centers.

"For various reasons, efforts to expand these centers to provide more comfortable facilities for our customers have been denied, so they have to crowd on street corners or on pavements," he said.

"It's not fair that these people are unable to enjoy a bit of comfort while watching or betting on races.

"Imagine what would happen if visitors to Macau were forced to squat on the roadside while playing poker or roulette."

Engelbrecht-Bresges said one claim which always rattles him is that the club is only seeking ways to increase its turnover.

"What some people seem to forget is that we are not a profit-making club. If we make more money, then the government gets more revenue and the charities get more funds. The money doesn't go into the club's pockets."

According to its Web site, the club has donated an average of HK$1 billion every year over the past decade to charities and community projects.

Engelbrecht-Bresges said that before the Asian financial crisis, the club's profits went to Ocean Park, Hong Kong Stadium, the Hong Kong University of Science and Technology, the Prince of Wales Hospital and various community centers, parks, swimming pools, schools, playing fields, clinics and other social services.

He said the Community Chest also depends on the club for its administrative expenses.

He pointed out that, while the Jockey Club is not the only outlet for gamblers since many Hong Kong people go to Macau, it is the only institution that provides funds for anti- gambling counseling and research. "I think it is time we come out from under this gambling umbrella and show just what we are doing for this community and what we can do for this community."

The downward spiral of turnover from horse racing that began soon after the handover of sovereignty in 1997 has bottomed out.

The club now expects a turnover of around HK$63.5 billion for the season ending July 2, an increase of about 5.5 percent from last year.

He did not give comparative figures for football betting, but indications from betting director Henry Chan were that it could get close to HK$34 billion.

Adding the Mark Six lottery, the total Jockey Club turnover could reach a record HK$100 billion, which could give the government around HK$13 billion in revenue.

But Engelbrecht-Bresges said the club cannot be complacent.

Illegal bookmakers and syndicates are looking for ways to fight back following the club's introduction of the 10 percent rebate for losing bets in excess of HK$10,000.

"There's no doubt our rebate scheme has affected them.

"They are now trying to woo punters by offering fixed odds on some hot favorites," Engelbrecht-Bresges said.

"This is something we have to look at seriously. After all, we have one of the world's best risk-management teams looking after our football betting, so if we have to go to fixed odds, it will not be a problem."