Hong Kong legalizes basketball betting, introduces 50% tax

• Hong Kong has finally decided to legalize basketball sports betting
• The activity will be administered by the HKJC as the sole licensed operator
• A 50% tax will apply on the net profit from the activity, while black market operations continue to gather steam

Hong Kong has long debated and now finally realized the legalization of basketball sports betting. Citing fears for widespread black-market operations, the Special Administrative Region (SAR) has agreed to at last introduce a law that enshrines the activity in the existing regulatory framework.

Through the Betting Duty Bill 2025, the Legislative Council of Hong Kong voted on Thursday in favor of the matter. This comes after widespread public support for legalizing the activity, with 94% of residents supporting the measure.

Basketball betting is at long last legal in Hong Kong

As a result, the bill passed with overwhelming support, with 77 votes in favor, and only two against. Two lawmakers abstained from voting. Commenting on the decision to legalize the activity, Secretary for Home and Youth Affairs Alice Mak said:

"We believe legalizing basketball betting will reduce traffic to illegal websites and curb the inflow of illicit gambling funds."

Moving forward, the basketball vertical will have a 50% tax on its net profit, which is similar to the way Hong Kong currently regulates soccer. Yet, it’s not clear if this approach is going to make a dent in the reach of the black market.

It is estimated that between $9bn and $11.5bn was wagered on illegal gambling websites in 2024, indicating that there is strong demand for competitive products. At 50% tax, it is not immediately clear whether the legalization would result in positive outcomes for Hong Kong.

Even in regulated European markets, at least half – or even more – of all gambling activity is attributable to the offshore and black-market operators.

Steep tax and an even steeper reach of the illegal gambling market

"The extension of the regulated regime to basketball betting will not only support the efforts and enhance its effectiveness in combating illegal betting but will also strengthen the sustainability of the Club’s contribution to the community through impactful charity donations and significant tax revenues. It is a matter of public interest," the Hong Kong Jockey Club said in a statement earlier this year, pushing for the necessity of legalizing basketball betting.

The Hong Kong Jockey Club is now set to be the only licensed operator of basketball betting products in the SAR.

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