Jockey Club 'should be proud' to pay extra football betting duty

The Hong Kong Jockey Club should be proud to be able to make a contribution to Hong Kong's recovery, says Home and Youth Affairs Secretary Alice Mak Mei-kuen, who believes the club is more than capable of paying an additional HK$2.4 billion annually in betting duty.

Mak also said the administration was not "targeting" the club a day after Financial Secretary Paul Chan Mo-po said in his budget the HKJC must pay the HK$2.4-billion special football betting duty for five years.

With Hong Kong facing a deficit and "since the club has been proud to be the largest charitable organization in the SAR, there shouldn't be a problem to pay an extra HK$2.4 billion per year to support government work during a difficult time," Mak said.

Executive Council convener Regina Ip Lau Suk-yee said officials should review the Jockey Club's structure to take back power from a handful of managers and help it better use its hundreds of billions of reserves.

Ip, who earlier proposed pumping up the gambling tax from 50 to 80 percent, added that authorities were "very lenient" when hiking the betting duty by HK$2.4 billion and the sum would have little impact on the club's reserves.

The club should review its own structure and make improvements, she added, and the administration or the Legislative Council should have the power to supervise how the club spends its money as power "is concentrated in the hands of a few people."

The club claimed on Wednesday that any increase in the betting duty would create "structural problems," damaging its business model while benefiting illegal and offshore betting operators.

But that claim was "absolutely groundless," Ip said.

"If the HKJC intends to enhance income and its competitiveness it can consider increasing its dividend rates," she said.

"The club also has hundreds of billions of reserves as it has more than HK$40 billion reserve in its charity trust and investment incomes. Its claim that a mere HK$2.4 billion special betting duty will substantially reduce its income was exaggerated."

Legislator Doreen Kong Yuk-foon said the club had made contributions during the pandemic and it was like "biting the hand that feeds you" for authorities to go after it.

But Chan said the club earned considerable money when the investment environment was good in 2021, and as Hong Kong has just survived the pandemic after three years of struggling it still needed support.

Legislator Benson Luk Hon-man suggested authorities add betting categories so the club has more sources of income.

But Chan said officials would then face the issue of whether they wanted to encourage gambling. "Personally, I don't quite wish to encourage citizens or youngsters to take part in gambling activities," he said.

wallis.wang@singtaonewscorp.com