Hong Kong Jockey Club Hits Record HK$331.7 Billion Turnover as Illegal Betting and Delayed Projects Cloud Outlook

The Hong Kong Jockey Club handled a record HK$331.7 billion in bets and lottery sales in the year to June 30, but the figures came with a warning: rising competition from illegal gambling, heavy taxation and delayed returns from major investments are putting more strain on the model that funds billions of dollars in public contributions and charity spending.

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The Club said after its annual general meeting on September 2 that total turnover rose 3.6% year on year. Racing, football betting and Mark Six all recorded growth.

Its overall contribution to the community reached HK$39.3 billion, up just 0.6% from the previous year. That included HK$29.3 billion in betting duties and profits tax, HK$1.4 billion for the Lotteries Fund and HK$8.6 billion in approved Charities Trust donations.

The Club said its tax payments accounted for 6.4% of all taxes collected by the Inland Revenue Department in the 2025/26 assessment year.

Record Betting Volumes

Racing turnover rose 3.6% to HK$143.3 billion, with overseas wagering providing much of the momentum.

Commingled betting on Hong Kong races from 26 jurisdictions climbed 9% to HK$34.3 billion, accounting for almost a quarter of racing turnover. Simulcast wagering increased 21.4%, while World Pool turnover rose 23%.

Football remained the Club’s biggest betting business, with turnover increasing 3.6% to HK$179 billion. Mark Six turnover rose 4.2% to HK$9.4 billion.

Total revenue from gaming and non-gaming activities reached HK$50.8 billion, up 3.1%.

The stronger turnover did not translate into comparable growth in the Club’s wider contribution. Racing betting duty increased only 0.7% to nearly HK$13 billion, while football betting duty rose 3.5% to HK$11.3 billion.

The additional special football betting duty remained fixed at HK$2.4 billion.

Illegal Gambling Becomes a Bigger Threat

The Club devoted a significant part of its results announcement to competition from illegal bookmakers.

Its concern is both financial and structural. Legal racing betting in Hong Kong can face duty rates of up to 75%, while football betting is taxed at 50% of gross margin. Offshore operators do not carry the same tax burden.

They also offer a much wider range of sports.

Hong Kong’s regulated market is limited to racing and football, while illegal operators can take bets on dozens of sports, including basketball.

That gap has become more significant after the Hong Kong government paused plans to grant a licence for regulated basketball betting. The Club had already invested substantially in technology and preparations for a planned 2026 launch.

It is now redirecting its new sports wagering platform towards football.

The Club’s position is that the absence of a legal basketball product will leave existing demand in the hands of illegal operators, whose reach has expanded through digital platforms, cryptocurrency and social media.

Conghua Racing Launch Delayed

A separate setback emerged in Guangzhou, where the Club had planned to stage racing at Conghua Racecourse in October.

That event has now been postponed.

The Club said Mainland authorities recently provided an updated risk assessment. Both sides agreed that further mitigation measures would be needed before racing could proceed, and no new date has been announced.

Conghua has become central to the Club’s long-term racing strategy. More than 600 horses are currently trained there, while the additional capacity has helped expand the total horse population to more than 1,300.

The Club has spent years building closer links with Guangzhou around the project. Cooperation agreements signed in 2021 and again in July 2026 expanded plans for a broader Guangzhou-Hong Kong equine industry cluster.

The delay means another major investment will take longer to produce its intended return.

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Racing Tourism Surges

On the track, the season delivered some of the Club’s strongest international results.

Ka Ying Rising remained unbeaten across 20 starts and won five Group 1 races, including The Everest in Australia. Romantic Warrior also secured five Group 1 victories and extended his position as the highest prize-money earner in global racing history.

Those performances coincided with a sharp rise in racecourse tourism.

The Club recorded 401,259 tourist visits during the season, up 105% from the previous year and roughly four times the level seen in 2023/24.

The Year of the Horse raceday at Sha Tin drew 98,000 spectators, including more than 20,000 visitors from Mainland China and overseas. The BMW Derby meeting attracted more than 72,000 people.

Average attendance at Happy Valley also rose 15% during the season.

The Club has been investing heavily in racecourse entertainment and hospitality as it tries to broaden racing beyond its traditional betting audience.

Charity Spending Remains High

The Jockey Club Charities Trust approved HK$8.6 billion for 191 charities and community projects during the year.

That was down 4.3% from HK$9 billion a year earlier.

One of the largest commitments was HK$1.7 billion for a new public riding school in Tseung Kwan O.

The Club and its Trust also committed HK$270 million following the Tai Po fire in November, combining emergency assistance with resources from existing community programmes.

Since 1997, the Trust has approved HK$98 billion in donations.

The Club transferred another HK$3.2 billion to the Trust during the year to finance future giving. HK$1.1 billion came from operating surplus after tax, with another HK$2.1 billion from investment returns.

Lower Surplus Expected

Despite record turnover, the Club is preparing for a more difficult financial period.

Heavy investment in Conghua, digital systems, racecourse redevelopment and the new wagering platform will take time to generate returns. The basketball licensing pause has further delayed part of the expected payoff.

The Club expects its operating surplus to fall further over the next several years.

It has begun cutting costs and looking for more non-wagering revenue, while maintaining that community funding will remain a core priority.

That leaves a clear tension in the latest results.

Turnover increased by more than HK$11 billion to a record HK$331.7 billion, but the Club’s total contribution to government, the Lotteries Fund and charities rose by only HK$227 million.

The business is still producing extraordinary volumes. The harder question is how much of that strength can be preserved as illegal competition grows, taxes remain high and large investments take longer to pay off.

Board Changes

Kenneth Fok Kai Kong was elected to the Board of Stewards for a one-year term, replacing Nicholas D Hunsworth, who retired.

Lester Huang, Bernard Charnwut Chan, Anita Fung Yuen Mei and Philip Lo were re-elected for three-year terms.

Martin Liao was returned as chairman, with Huang continuing as deputy chairman for 2026/27.

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