As the government paused the introduction of basketball betting activities, Chief Executive John Lee Ka-chiu said it is appropriate for the Home and Youth Affairs Bureau (HYAB) to review the situation and assess potential risks brought by the prediction market platforms.
Authorities proposed exploring the regulation of basketball betting activities in last year’s Budget. The Legislative Council also passed the Betting Duty (Amendment) Bill last September, and a relevant license is expected to be issued to the Jockey Club.
However, prediction market platforms have developed rapidly in recent years, allowing users to trade outcomes of political, economic, and sports events. This has raised authorities’ concerns about the uncertainty that gaming-related activities could bring.
Lee said the government’s consistent policy is to discourage gambling, and the authorities would only consider implementing any proposals after a comprehensive risk assessment and confirmation that they are worthwhile. He added that actions should not be taken rashly before the benefits are determined and the situation is clarified.
He further explained that the growth rate of prediction markets has far exceeded expectations. He said they involve not only gambling, but also a large amount of speculative activity, some of which may even involve virtual assets.
Lee noted that data show prediction markets have grown by 130 percent over two years, with the growth rate still accelerating. He said it is important to understand their impact on gambling in Hong Kong.
He also pointed out that prediction markets cover different types of activities, with sports games accounting for 40 percent, which causes the government’s concerns.
Lee supports the HYAB in seriously reviewing the relevant risks and ensuring they are properly addressed before taking further action.
He also affirmed the Jockey Club’s contributions and efforts, noting that the club operate its existing legal betting business well and continuously dedicate resources to supporting social and charitable activities.
