Record FY26 Turnover at Hong Kong Jockey Club Underscores Damage from High Betting Duties and Narrow Legal Offerings
TL;DR — Hong Kong Jockey Club reported record FY26 turnover of HK$331.7 billion and revenue up 3.6% to HK$50.8 billion, generating HK$29.3 billion in taxes. It warned that duties up to 75% on racing and limits to two legal sports are expanding illegal markets, especially after the April pause on basketball betting. (52 words)
SCCG Take — Excessive duties and product restrictions undermine the licensed operator while expanding untaxed illegal channels and social harms. Regulators must weigh revenue gains against the long-term erosion of legal market control.
The Hong Kong Jockey Club achieved record wagering turnover in FY26 while cautioning that high betting duties and limited legal options are expanding the illegal gambling market.
According to Inside Asian Gaming, the club reported its results for the year ended 30 June 2026 – aided by strong betting around the football World Cup – it also highlighted illegal gambling as an ever-expanding threat that it said is enabled by the tax and licensing restrictions imposed upon the city’s only licensed operator.
HK$331.7 billion in total wagering and lottery turnover generated HK$29.3 billion in betting duty and profits tax. That sum accounted for 6.4% of all taxes collected by the Inland Revenue Department.
Record Results Across Racing, Football and Lottery
Racing wagering turnover rose 3.6% to HK$143.3 billion, producing gaming revenue of HK$19.9 billion. Football betting turnover similarly increased 3.6% to HK$179.0 billion, generating HK$22.6 billion in gaming revenue. Mark Six lottery turnover grew 4.2% to HK$9.4 billion with gaming revenue of HK$4.3 billion.
HKJC credited new bet types, additional league competitions, the summer’s global football tournament and its trading team’s performance supported by advanced risk management technology.
Excessive Duties and Product Limits Fuel Illegal Growth
The club warned that betting duties increased in 2023 are eroding competitiveness. Betting duty on racing is up to 75%, while football betting is taxed at 50% of gross margin.
Licensed betting is available on only two sports versus up to 60 for illegal operators. The recent pause on basketball betting legalization, prompted by concerns over U.S. prediction markets, leaves no legal channel for that activity.
“The Club fully respects the HKSAR Government’s decision to pause the granting of a licence for regulated basketball betting,” HKJC stated. “But with no legal channel available, the illegal market on basketball will continue to expand and along with it the social and criminal damage to the community.”
This situation presents Hong Kong policymakers with a clear tension. High tax rates deliver immediate revenue but appear to be driving volume to unregulated channels that escape taxation entirely while imposing unaddressed social costs. Adjusting duties and broadening legal offerings could allow the licensed market to recapture activity, reducing illegal participation and the associated harms.
Reporting: Inside Asian Gaming
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
High duties and narrow product menus don't protect consumers—they gift market share to unregulated offshore books and undermine the licensed channel.
We've seen this movie in every jurisdiction: overtax and under-license the legal operator, and punters vote with their phones. Hong Kong generated HK$29 billion in tax but is losing control of its market. Regulators everywhere should study this as a cautionary tale—monopoly or not, product and duty matter.
- HK$331.7bn turnover, HK$50.8bn revenue, HK$29.3bn in tax—but 75% racing duty and 50% football duty erode competitiveness
- Legal betting limited to two sports vs. 60+ for illegal operators; basketball pause redirects demand offshore
- HKJC warns restricted product and excessive duties fuel illegal growth, undermining harm prevention and tax yield
SCCG angle: SCCG works with regulators and operators across 30+ markets to model duty structures, expand product safely, and design harm-prevention frameworks that keep betting legal and taxed. We help governments balance revenue with competitive reality—and operators optimize within the rules they're handed.
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