HKJC Betting Slump: Local Turnover Down 11.5%

HKJC Betting Slump: Local Turnover Down 11.5%

The Hong Kong Jockey Club (HKJC) announced a sharp early-season decline in local betting turnover after the September 27 meeting at Sha Tin. Local wagering on the 11-race card fell 11.5% year-on-year to HKD 1.359 billion ($174.7 million) according to a South China Morning Post report.

Customer Numbers Remain Stable, Stakes Drop

HKJC officials said the customer base was similar to, or slightly ahead of, the same point last year. Yet head of racing product Greg Carpenter described average bet size across the first five fixtures as “definitely very soft.” The club’s chief executive, Winfried Engelbrecht-Bresges, confirmed that a team is investigating the reasons.

Field Size and Race Composition Matter

Engelbrecht-Bresges pointed to smaller fields as a key factor. Some trainers held horses back in the early-season heat, and the Celebration Cup drew nine runners compared with 14 a year earlier. The last race at Sha Tin took HKD 153 million, roughly 19.7 million, against the roughly HKD 190 million (24.4 million) that a typical race would attract. He warned that races with five or six horses “don’t work.”

Cannibalisation from Overseas Simulcasts

The club cited a “cannibalisation effect” from the growing number of commingled and simulcast overseas races. Since October 11, HKJC has added a six-up bet type for simulcast races, an extra six-up pool on the first six local races, and more double trio pools at designated simulcast meetings.

Competition from Illegal and Offshore Operators

Illegal bookmakers remain a direct rival. In June, police arrested 150 people in a three-day operation against a syndicate accused of handling more than HKD 320 million ($40.8 million) in wagers. HKJC estimates that illegal basketball betting alone drew HKD 70 billion to 90 billion ($9 billion to $11.6 billion) in 2024, from as many as 430,000 residents.

Offshore casino sites also compete for the same gambling budget. Bonuses at online casinos targeting Hong Kong are typically quoted in Hong Kong dollars, with first-deposit offers of HKD 1,000 to HKD 8,000 ($129 to $1,028) and minimum deposits as low as HKD 100. Several sites accept USDT and other cryptocurrencies. Under Hong Kong law, betting with an unauthorised bookmaker is an offence wherever the bookmaker is based, punishable by a fine of up to HKD 50,000 ($6,400) and nine months in prison.

Shift in Revenue Sources

The HKJC, Hong Kong’s largest single taxpayer, has said it needs to widen its customer base. Football overtook horse racing as its biggest source of turnover in 2021 and now accounts for more than half of all wagering.

What This Means for Players and Operators

Smaller fields translate directly into lower average stakes, which in turn reduce the club’s revenue per race. Players betting on a five-horse race face a higher probability of losing, yet the club’s payout structure remains unchanged. Operators that rely on high-volume, high-stake betting must adjust their marketing and race scheduling to avoid thin fields.

Regulatory and Enforcement Context

The police raid that seized HKD 320 million in wagers highlights the ongoing crackdown on illegal syndicates. Operators must ensure that their KYC and anti-money-laundering procedures can flag suspicious activity, especially when customers shift from local to offshore platforms.

Next Steps for HKJC

HKJC is reviewing the early-season slump and exploring adjustments to race scheduling, field size incentives, and simulcast offerings. The club’s focus on widening its customer base suggests a strategic shift toward diversifying revenue streams beyond traditional horse racing.

Open Question

Will the introduction of new simulcast betting options offset the revenue loss from smaller fields, or will players continue to gravitate toward illegal and offshore operators for higher stakes and better odds?

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