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Pursuant to the Betting Duty Ordinance, the Secretary for Home Affairs has approved today (January 25) an application from the Hong Kong Jockey Club (HKJC) for overseas bets on Hong Kong horse races to be accepted in the Macao Special Administrative Region.

The approval, effective for three years, is made in accordance with a Deed for Telecast and Placing of Bets on Horse Races relating to a one-way betting arrangement between the HKJC and Macau Horse Racing Company.

Under the new arrangements, bets can be placed on the HKJC's horse races at the authorised venues of the Macau Horse Racing Company in Macau. Specifically, only win bet, place bet, double bet, quinella bet, forecast bet and quinella place bet as defined under the Betting Duty Ordinance may be accepted.

According to the ordinance, the betting duty on overseas bets will be at half of the rate for bets received in Hong Kong, which will be set at 6% of the total betting turnover. This applies to the approved application.

Explaining the Government's decision, a spokesman for the Home Affairs Bureau said: "The acceptance of overseas bets will benefit Hong Kong in terms of additional betting duty receivable and an increase in the allocation to local charities."

The establishment of closer ties between Hong Kong and the international racing community would also enhance the image of Hong Kong's racing industry, the spokesman said.

The approval of this one-way betting arrangement in Macau was given in accordance with the existing policy and provisions on overseas bets under the Betting Duty Ordinance.

"The approved one-way betting arrangement enables people in Macau to place bets on HKJC horse races through an authorised channel. This approval does not authorise the Macau Horse Racing Company to accept bets in Hong Kong. Nor does it authorise any person in Hong Kong to place bets with any bookmaker outside Hong Kong, including the Macau Horse Racing Company. These activities are forbidden under the Gambling Ordinance," the spokesman said.

According to the existing policy, the Government considers that acceptance of overseas bets on local races would not encourage gambling in Hong Kong as it explores overseas markets rather than expands the local gambling market.

The approval is also subject to a series of other conditions that seek to ensure that this one-way betting arrangement operates in the overall interests of the public.

For revenue protection purposes, the Government has separately signed a Memorandum of Understanding with the HKJC, whereby the HKJC undertakes to pay the Government half of the royalties it receives from the Macau Horse Racing Company under the one-way betting arrangement.

According to the Betting Duty Ordinance, "overseas bet" means a bet of any form accepted at a venue outside Hong Kong authorised by the HKJC and approved by the Secretary for Home Affairs on any totalisator or pari-mutuel authorised by the ordinance. This is the first overseas betting arrangement approved under the ordinance since the relevant provisions were enacted.

Ends/Tuesday, January 25, 2005

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