HKJC chief pledges to maintain donations, fight higher tax rate

Hong Kong Jockey Club's chief executive Winfried Engelbrecht-Bresges has promised not to lay off staff and keep its HK$4.5 billion regular donations in the next five years after it was asked to pay HK$2.4 billion more in football betting duty each year.

But he reiterated the HKJC's opposition to pumping the football betting tax rate.

An internal letter signed by Engelbrecht-Bresges was issued to employees yesterday, eight days after Financial Secretary Paul Chan Mo-po's announcement in his budget for the club to help the government improve its fiscal wealth.

Engelbrecht-Bresges said the club understands Hong Kong's financial situation amid the economic recovery and a dire need to tackle livelihood issues.

"At the same time, the club opposes raising the incumbent 50 percent football betting duty rate," he said.

Calling the move irreversible, he said increasing the betting tax rate will prevent the club from offering competitive betting odds in the face of fierce competition, in particular from illegal betting.

"We understand colleagues are concerned about the impact of the extra football betting duty, and how our future investments will be affected," he wrote.

"I can assure you that we will continue to invest in world-class racing, IT development, integration into the Greater Bay Area, and the most important aspect of human resources."

Engelbrecht-Bresges said that like other charitable organizations, the club finds it hard to source funds.

"As an institution that strives for a better society, the club promises to make no less than HK$4.5 billion annual donation for the next five years, meaning we are keeping donations at the same level as in recent years," he said.

However, with the HK$2.4 billion extra football betting duty, the club will have to pay part of the donations from its reserve.

"During this time, the entire organization will work together as a team," he said. "Despite the challenging environment, we will ensure job security for our employees, and will not lay them off as a result of the special football betting duty."

But Engelbrecht-Bresges warned of more careful cost management.

"We must make use of our resources wisely and strategically," he said. "I encourage you to speak to your immediate supervisor if you have any suggestions on how we can improve our performance."

Despite "tremendous impact" brought by the extra tax, Engelbrecht-Bresges said he remained optimistic about the organization's future.

"We have overcome the pandemic together...We need to remain flexible and united. I am confident that in the spirit of 'One Club, One Team, One Vision,' we will again overcome challenges and rise to the occasion," he wrote.

Regina Ip, chairwoman of New People's Party, has engaged in bold exchanges since she proposed to pump football betting duty before Chan's budget, prompting the club to quickly say she is "unfamiliar with betting business."

Of HK$25.5 billion betting duties the club paid last year, HK$9.9 billion was from football betting, government sources said last week.