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Hong Kong to Lose Billions in Taxes if Gambling is Banned
Please take our cash: bookie
HONG Kong stands to lose out on the opportunity to earn tax on HK$150 billion if blanket legislation outlaws offshore sports betting, according to the United Kingdom's largest bookmaker.
Victor Chandler Worldwide said the actual amount lost to illegal sports betting was probably close to double the HK$83 billion estimated by the Jockey Club.
Chief executive Michael Carlton said the betting firm recognised the proposed amendments to the legislation would probably be passed. ``However, I do regard this as a huge missed opportunity for Hong Kong,'' he said.
Victor Chandler's Asia chief executive, Murray Burton, added: ``Our wish is to be licensed, regulated and taxed in Hong Kong.''
At the present gambling tax rate of 14 per cent, HK$150 billion would return HK$21 billion - about a third of the SAR's estimated deficit.
If passed by the Legislative Council, the new Gambling Ordinance will outlaw all forms of offshore sports betting. A consultation paper on legalising soccer betting has been released. If legislation on legal soccer betting is passed, it will not happen until next year at the earliest.
Carlton estimated there would be ``an unprecedented level'' of gambling on the World Cup, which begins on May 31. He put a conservative figure in the ``hundreds of millions of US dollars''.
He also called the current proposal ``the worst of all possible solutions'' and ``a charter for triads'', ignoring the ``massive demand'' and forcing sports betting underground. ``Some 300,000 people intend to bet on this summer's World Cup, and the only options they will have when the law is amended will be to bet with illegal bookmakers, or not to bet at all.''
Carlton said legislation that allowed a small number of licensed operators would provide a secure environment for Hong Kong punters and provide new tax revenue.
The Jockey Club's betting turnover has dropped by about 12 per cent from the 1997 high of HK$92 billion. In 1999-2000, it paid HK$11 billion in taxes and HK$1.8 billion to charity.
Burton said the bookmaker had expressed interest in a joint venture with the club, but it was ``not grasping the nettle as we'd like them to''.
HONG Kong stands to lose out on the opportunity to earn tax on HK$150 billion if blanket legislation outlaws offshore sports betting, according to the United Kingdom's largest bookmaker.
Victor Chandler Worldwide said the actual amount lost to illegal sports betting was probably close to double the HK$83 billion estimated by the Jockey Club.
Chief executive Michael Carlton said the betting firm recognised the proposed amendments to the legislation would probably be passed. ``However, I do regard this as a huge missed opportunity for Hong Kong,'' he said.
Victor Chandler's Asia chief executive, Murray Burton, added: ``Our wish is to be licensed, regulated and taxed in Hong Kong.''
At the present gambling tax rate of 14 per cent, HK$150 billion would return HK$21 billion - about a third of the SAR's estimated deficit.
If passed by the Legislative Council, the new Gambling Ordinance will outlaw all forms of offshore sports betting. A consultation paper on legalising soccer betting has been released. If legislation on legal soccer betting is passed, it will not happen until next year at the earliest.
Carlton estimated there would be ``an unprecedented level'' of gambling on the World Cup, which begins on May 31. He put a conservative figure in the ``hundreds of millions of US dollars''.
He also called the current proposal ``the worst of all possible solutions'' and ``a charter for triads'', ignoring the ``massive demand'' and forcing sports betting underground. ``Some 300,000 people intend to bet on this summer's World Cup, and the only options they will have when the law is amended will be to bet with illegal bookmakers, or not to bet at all.''
Carlton said legislation that allowed a small number of licensed operators would provide a secure environment for Hong Kong punters and provide new tax revenue.
The Jockey Club's betting turnover has dropped by about 12 per cent from the 1997 high of HK$92 billion. In 1999-2000, it paid HK$11 billion in taxes and HK$1.8 billion to charity.
Burton said the bookmaker had expressed interest in a joint venture with the club, but it was ``not grasping the nettle as we'd like them to''.