Hong Kong - Casino Gaming Licensing and Regulatory Landscape
Introduction
The question is often asked can I gamble in Hong Kong? The Hong Kong Gambling Ordinance has stringent rules around gambling. The Hong Kong government only allows a few regulated gambling premises.
The government set up the Gambling Ordinance in 1977 to rein in excessive gambling. As a result, gambling anywhere In Hong Kong besides gambling premises is illegal, including placing bets with a bookmaker. So, the options for any residents looking to gamble are minimal.
Hong Kong Jockey Club
The Hong Kong Jockey club is the single largest taxpayer in Hong Kong because of its revenue from different wagers. It holds a government-authorised monopoly on horse racing, football and lottery. It aims to provide lottery services and responsible sports betting. The club was initially founded in 1884 and is one of the oldest establishments in the country. Twelve board stewards run the club and all work without any wages.
In the financial year 2021/2021, the club donated 92% of its profit to The Hong Kong Jockey Club Charities Trust. The Trust donated the funds only after it paid all government taxes and other expenses. The Trust donates the majority of the money to worthwhile community schemes and charities. The charity causes' main aim is to help with social issues and the many different needs of the population in Hong Kong. The club has 23,000 members, and they get to enjoy all the benefits of the club. It includes recreation facilities such as social, sports, recreational and dining halls. The club donates billions every year, and for this reason it has made it one of the top 10 charities worldwide.
The core values and principles of the Hong Kong Jockey Club include:
World-class Leadership
Uncompromising Integrity
Serving the Community
Continuous Development
Horse Racing in Hong Kong
Hong Kong horse racing is extremely popular, and the turnover is the largest in the world. In the 2021/21 horse racing season, it has earned a record amount of HK$136.3 billion. The turnover for the period broke the previous record by HK$12 billion. It was pretty incredible, considering it managed to achieve it through the COVID pandemic.
There are only two racecourses that are allowed to operate in Hong Kong. The first, Sha Tin Racecourse, opened in 1978, and the capacity of the course is impressive and can hold up to 85,000 people. On average, there are around 500 races held there over the year. The other racecourse is the Happy Valley Racecourse, which has been around since 1845 and has a capacity of 55,000. The racing is held at Happy Valley Racecourse on Wednesday evenings and is open to the public. The weekend racing usually gets held on a Saturday or Sunday afternoon at the Sha Tin Racecourse.
In addition, hockey, football, and rugby occur on the inner field.
Hong Kong Lottery
The HKJC also runs the Mark 6 Lottery. It is a lottery-style game with seven levels of prizes, and the draws occur three times a week. The game started in 1975 as the government was trying to stamp out all the illegal Chinese lotteries that were in operation then. The jackpots start at HK$8 million, and many more prizes are available. To play the lottery, a minimum ticket price will cost a player $HK5.
In addition, the winning numbers are selected automatically from a lottery machine containing balls with numbers 1 to 49. The final number for the Mark 6 is also drawn from the same lottery machine, which is known as the special number in Chinese.
Hong Kong Casinos
Online Casinos
Although online casinos in Hong Kong are strictly banned, the government struggles to control residents choosing to play at these offshore-based casinos. As these casinos do not hold any licenses from the Hong Kong Government, they cannot receive any fines or similarly be closed down. Therefore, the only way the government could take action on illegal online betting would be to target and prosecute the players. However, there are too many residents who are playing online that for the government to control would be an incredibly difficult task. Payment methods are also a touchy subject as Hong Kong banks will block any attempts on payment to international online casinos. Therefore customers tend to use cryptocurrencies, e-wallets and prepaid cards to fund their international accounts.
Cruise Ships
The only way to gamble at a land-based or rather sea based casino in Hong Kong is to board one of the many casino cruise ships. Players board the cruise ship and head out to international waters so that no Hong Kong gambling laws have been broken. Players who want to play at land-based can also choose to catch a ferry to Macau, the gambling capital of China. Here they can legally play at one of its many impressive casinos.
Illegal Gambling in Hong Kong
In 2002 the Hong Kong Jockey Club made it illegal for international operators to offer gambling services. Any operators found to be providing these services to the residents could be prosecuted and face a HK$5 million fine and up to seven years in prison. In addition, any players who are found to be participating in illegal gambling can face a sentence of up to nine months in jail and a HK$50,000 fine.
Conclusion
As you can see, gambling in Hong Kong is no easy feat. The gambling landscape is not player friendly. Many locals are happy to bet on horse racing and lottery through the Hong Kong Jockey Club, both legal activities in the jurisdiction. However, many residents are looking for the thrill of online casinos where they can play slots, blackjack, roulette and all the other exciting games on offer. They then have to choose to either have to play illegally at an overseas online casino, or they can board a casino cruise ship or travel to China to play. Whether the government will change the laws and relax the tight rules and restrictions is an unknown.