Domestic wagering on Hong Kong racing has softened in line with global trends, contributing to a 4.5 per cent decrease in overall turnover in the Asian thoroughbred capital in the 2023/24 season.
During the racing season that ended on Sunday, local investment in Hong Kong Jockey Club races fell 7.2 per cent on its 2023 turnover.
Hong Kong punters wagered $HK105.9 billion ($A20 billion) through the HKJC across 88 meetings, comprising 831 domestic and 368 overseas simulcast races in 2023/24, compared to $HK114.1 billion the previous year.
Excluding the pandemic-affected season in 2020 when turnover dropped to $HK97.7 billion, the 2023-24 season represents the HKJC’s lowest year of domestic wagering since 2016 when $HK103.9 billion was wagered domestically.
HKJC officials attributed the decline in domestic turnover to a downturn in the global economy, particularly in Hong Kong, given its status as a world financial hub.
Overall wagering turnover that includes co-mingling pools such as World Pool, decreased from $HK140.3 million in 2023 to $HK134.7 million this year.
“Under such a challenging economic situation, our overall season racing turnover is satisfactory,” HKJC Winfried Engelbrecht-Bresges said.
“While the club will continue to grow and expand its overseas customer base, the decline in local racing wagering turnover underlines that it must constantly engage and re-engage with Hong Kong racing fans.”
In 2014, local turnover in Hong Kong stood at $HK103.9 billion and reached a decade-high $HK114.8 billion in 2022 before dipping slightly to $HK114.1 billion in 2023.
Likewise, Australian wagering figures for the past decade peaked in 2022.
According to the most recent Racing Australia annual fact book, Australians wagered $29.1 billion on horse racing during 2021/22.
This spike for wagering operators and principal racing authorities came during the COVID-19 pandemic when racing continued, and online gambling thrived with disposable income plentiful amid lockdowns.
Similarly, wagering on horse racing fell by 9.6 per cent year-on-year in Australia during 2022/23 to $26.3 billion. It is widely believed Australian turnover is down a further 10 per cent this season.
“Under such a challenging economic situation, our overall season racing turnover is satisfactory."
Winfried Engelbrecht-Bresges
The HKJC has offset a decrease in domestic betting by leveraging its co-mingling wagering assets.
A strategy to expand its customer base globally is a growth area for the HKJC.
Hong Kong races attracted a record co-mingling turnover of $HK28.8 billion this season, a 13.7 per cent increase from 2022/23.
In a swing the HKJC says reflects the high profile of Hong Kong racing internationally, 26 countries and more than 70 partners now co-mingle on Hong Kong racing, including Malaysia for the first time.
“Bringing overseas races via simulcasting to showcase the best races around the world to Hong Kong has always been part of our racing wagering offering,” Engelbrecht-Bresges said.
Overall, simulcasting turnover, including World Pool co-mingling for the season, was up by 8.7 per cent to $HK12.8 billion.
In 2024, races involved in the World Pool increased 47.4 per cent from 175 to 258, highlighted by an expansion of Australian racing.
The HKJC said World Pool turnover was up by 57.1 per cent on 2022/23.
While horse racing turnover presents its challenges for the HKJC, football wagering shows no signs of slowing.
From a turnover of $HK62.2 billion in 2014, HKJC customers invested almost $HK157 billion in 2023.
Football wagering surpassed racing for the first time in 2021 with $HK140.2 billion gambled compared to an overall $HK136.1 million on thoroughbred events.
Given the extraordinary growth in its football product, an extension of the HKJC’s sports offering is not out of the question.
Bren O’Brien
Engelbrecht-Bresges recently told Hong Kong newspaper The Standard that the HKJC was open to creating a platform for NBA betting.
He said there was an opportunity to capture some of the basketball betting market currently facilitated by non-regulated markets.
An estimated 60 per cent of the 150,000 NBA punters in Hong Kong bet with an illegal wagering firm.
A move into the NBA arena would require an $HK1.5 billion ($A284 million) investment and an 18-month legislative process to legalise basketball betting.
The Hong Kong Jockey Club is the sole operator authorised by the government to provide horse racing and football betting services. It also administers the Mark Six lottery on behalf of the government.
