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The Hong Kong Jockey Club has given back HK$35.9 billion to the community in the past financial year - HK$2.3 billion more than last year despite having to pay an extra HK$2.4 billion special football betting duty annually to the government.
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HKJC, despite facing a challenging financial year that ended June 30 due to the pandemic and the economic slowdown, saw a record turnover of HK$304.8 billion - up HK$14.8 billion on last year.
Its contributions to the community included a record HK$28.6 billion in betting duty, profits tax and Lotteries Fund contributions and HK$7.3 billion in approved charity donations - the second highest in its history.
The club saw racing turnover of HK$141.1 billion in the 2022-23 season, up 0.5 percent on last year.
Although it has recorded a decrease of 1.3 percent in local turnover on Hong Kong racing, the loss was compensated by exporting its world-class racing overseas via commingling, which widened its customers and revenue.
In the last racing season, commingling grew 3 percent to HK$25.4 billion, comprising 19.6 percent of total turnover for the season.
The club said football betting saw a strong performance, with turnover up 9.1 percent to HK$156.9 billion, partly due to the Qatar World Cup last November.
But the main reason for the surge in football betting turnover was the club's new customer information and wagering system, which facilitated the launch of new "In Play" betting to compete with the illegal market, it said.
Although turnover went up, the club's income was flat at HK$9.8 billion, due to increased taxation totaling HK$12 billion in additional special football betting duty over the next five years, as announced in this year's budget.
Mark Six lottery turnover, which returned to three draws per week, was up 29.2 percent to HK$7.5 billion over the previous financial year.
The club cautioned of a substantial reduction in income in February, after the government introduced the additional special football betting duty, which it said will significantly impact its donation to its Charities Trust.
However, the club has promised that it will maintain its regular approved charity donations at no less than HK$4.5 billion a year over five years.
The club said it understands the rationale of the special football betting duty, but it remains "very concerned" about any permanent increase in taxation, especially in the rate of betting duty, as it is already far higher than in other jurisdictions.
"In the digital age, the club faces significant competition from illegal bookmakers who pay no tax, and from overseas sports betting bookmakers who operate under very low tax regimes," the club said.
"Illegal and overseas betting operators are already earning profits in excess of HK$15 billion a year from Hong Kong customers, and if betting duty rates increase, the club would face a significant decrease in income and would be less price competitive," it added.
If that is the case, the club added, it would be unable to invest for its future and would be inept to support Hong Kong in contributions and charity donations.
