Jockey Club hits $280b turnover jackpot

Punters poured a record-high turnover of HK$279.7 billion in the 2020-21 financial year ending June 30, despite the Jockey Club restricting racecourse attendance and limiting services at off-course betting centers amid the pandemic.

The total is HK$61 billion more than the previous financial year - a whopping 27.9 percent rise.

This allowed the HKJC to contribute a record HK$24.9 billion to the government in duty, profits tax and Lotteries Fund contribution, plus HK$4.5 billion in approved charity donations, the same as the previous financial year.

Horse racing betting turnover was up 12.5 percent to HK$136.1 billion this financial year, from HK$121 billion, and for the season it rose 12.1 percent to HK$136.4 billion after the club did not cancel a single race, thanks to its "racing bubble."

This contributed HK$13.7 billion in betting duty to the government, which is a 13.7 percent increase compared to last years' HK$12.1 billion. For the season it was up 13.6 percent to HK$13.8 billion.

Club chief executive Winfried Engelbrecht-Bresges expressed his gratitude to all staff for their outstanding contribution during "this most challenging year."

He added: "My special thanks to trainers, jockeys, stables and transport staff and everyone else in the racing community, many of whom have made a great personal sacrifice."

Engelbrecht-Bresges said he appreciated the support of racing fans amid difficult times.

Betting on football was supported by the resumption of major leagues and the rescheduling of postponed matches and competitions like Euro 2020 and Copa America 2020. Football turnover for the year rose 51.4 percent to HK$140.2 billion, from HK$92.6 billion. Football betting duty was up 47.4 percent to HK$9.25 billion, from HK$6.27 billion.

A club spokeswoman said: "The club's strong financial performance over the past year owes a great deal to the success of its digital products, with over 90 percent of wagering turnover being generated via online and mobile channels."

But Mark Six turnover dropped 34.3 percent to HK$3.4 billion, from HK$5.1 billion, due to its suspension between February and mid-September last year. Over-the-counter sales only fully resumed in May.

The lottery duty and Lotteries Fund contribution totaled HK$1.3 billion, while the profit tax rose to HK$625 million, from HK$323 million.

Looking ahead, the club hopes to develop a "fully fledged" horse industry in the Greater Bay Area by growing its brand through a triangle of racecourses at Sha Tin, Happy Valley and Conghua, Guangdong.

According to an agreement signed with the Guangzhou government in May, Hong Kong racing will come to the Conghua racecourse, where a new grandstand will rise in 2025.

carine.chow@singtaonewscorp.com