Basketball betting rollout halted as govt evaluates impact of prediction market platforms: source

The government has recently instructed the Hong Kong Jockey Club to pause the implementation of basketball betting activities due to complications arising from popular prediction market platforms, according to an exclusive source from Sing Tao Daily, sister publication of The Standard.

This came after the Budget last year proposed exploring regulating basketball betting activities, and the Legislative Council also passed the Betting Duty (Amendment) Bill last September and a relevant license will be issued to the Jockey Club.

The source revealed that the Club held a meeting with its Voting Members on Monday (Apr 13), during which it was mentioned that the basketball betting, originally scheduled for launch this year, must be paused due to the government notification to study the impact of the recently popular prediction market platforms in the United States on the activities.

Regarding whether there is a timetable for implementation, the source quoted the Jockey Club's briefing as saying that there is none at the moment and pending the government's arrangements before any further action is taken.

After the LegCo passed the Betting Duty (Amendment) Bill last September, the Club has been working on the system development — originally scheduled to take a year — to coincide with the NBA season starting in October and the pre-season games at the end of September.

Prediction market platforms have developed rapidly in recent years, allowing users to trade on the outcomes of political, economic, and sports events. As a large volume of transactions comes from sports-related contracts, the market often compares these platforms with sports betting companies. Unlike typical online betting companies, the prediction market has no bookmakers and it is simply a platform for users to buy and sell contracts, which can be traded at any time before the results are announced.

HKJC has been advocating for the legalization of basketball betting for many years to combat illegal gambling activities. A previous HKJC-commissioned survey indicated that illegal basketball betting in Hong Kong reached HK$70 billion to HK$90 billion in 2024. The Club believes that legalizing basketball betting could reclaim 30 to 40 percent of the betting volume from illegal channels, generating HK$1.5 billion in tax revenue for the government annually when the market is mature.

In response to the enquiry, a spokesman for the Home and Youth Affairs Bureau said on Monday that as a responsible government, it is necessary to conduct a more in-depth study of the operation of the emerging model and platform to protect the public interest from harm. He added that new gambling activities should be halted until mature conditions are met, and emphasized that betting on sports in the prediction market in Hong Kong constitutes illegal gambling.

The Hong Kong Jockey Club said it understands the government will carry out a review on the negative impact of prediction markets on the wagering market, including basketball betting and respect the decision, while at the same time will offer collaboration on the review. “We will wait for the HKSAR Government’s further advice on our basketball betting license application,” it added.