Betting duty is a type of taxation levied on certain types of betting activities in a jurisdiction. Hong Kong imposes betting duty on certain betting activities, primarily related to horse racing and football betting.
In Hong Kong, the Hong Kong Jockey Club (HKJC) is the sole authorized entity to offer horse racing and football betting.
The Hong Kong Jockey Club is a renowned, non-profit organization in Hong Kong primarily focused on charitable initiatives. The HKJC is a major philanthropic force, funding numerous community projects in education, healthcare, and social welfare, making a substantial positive impact on the local society.
Let’s have a look on how this duty is applied within the Hong Kong territory.
Calculation of Betting Duty
The betting duty rate varies depending on the type of betting activity:
Horse Racing
The betting duty rate for horse racing is calculated as a percentage of the total amount wagered on each bet.
Betting duty on local bets on local horse races is charged on the net stake receipts at progressive rate from 72.5% to 75%, which are arrived at after deducting the total dividends and rebates on bets (to bettors making losing bets at or over 10,000 HK$) from the local bets.
Football Betting
For football betting, the duty is calculated based on the total stakes received for each bet.
Betting duty is charged at 50% on the net stake receipts from the conductor of authorised betting on football matches by the authorized company.
Other Duties
Betting duty is also charged at 30% on contribution or subscriptions to authorized cash sweeps, and at 25% on bets made on lotteries (Mark-six) conducted by the authorised company.
Scope of the betting duty
These activities generate tax income for the government, which in turn funds public services. As with any gambling activity, ethical betting habits are recommended to make sure that participants have a fun and safe time.
For accurate and up-to-date information on betting duty rates and regulations in Hong Kong, individuals and businesses are advised to consult the Hong Kong Jockey Club and relevant government authorities.