GREATER CHINA 12
HONg kong
Ascot provides royal revenue boost The Hong Kong Jockey Club has seen strong growth in its international business, with the addition of a pool on racing at Royal Ascot this year significantly boosting turnover.
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he club said commingling turnover organisation in Hong Kong permitted to increased by 13.5 percent in the offer gambling services. 2018/2019 season to HK$18.8 In September, the HKJC found itself in billion ($2.39 billion). a spat with Betfair Australia which began Launched just five years ago, commingling offering bets on racing in the territory now represents 15 percent of the club’s total without the club’s permission. racing turnover and as of next season, it will The club told the Australian company to have over 40 commingling partners in 14 stop in a cease and desist order, saying it was countries and jurisdictions. given no prior knowledge of Betfair’s plans. This year, the HKJC joined with Ascot, “The Club takes this matter seriously as Totepool and other regular partners to offer the it represents a serious integrity issue and an Ascot World Pool on the five days of Royal Ascot. equally serious infringement of its intellectual The event boosted turnover by HK$238 million. property rights,” HKJC secretary Philana Poon Net income from its commingled operations said in an open letter to Betfair CEO Tim was up 11.4 percent to Moore-Barton. HK$780 million. “As a matter of principle “All of this underlines and consistency, the Club Creating the how Hong Kong has become considers that Betfair the global centre for comought not be permitted opportunity for mingling,” CEO Winfried to exploit overseas racing people to back Engelbrecht-Bresges wrote where there has been no in the club’s annual report. approval from the relevant horses to lose is “Our world-class racing, overseas racing authority. against what we competitive field sizes, Betfair said it would high integrity, extensive offer its full range of all believe in. racing information, stateproducts, including allowing of-the-art technology, and punters to bet on a losing wagering pools with high horse and it’s this point levels of liquidity, have all made Hong Kong in particular has ruffled HKJC feathers. a leader in international wagering.” “Creating the opportunity for people The HKJC said it was seeing increasing to back horses to lose is against what we all globalisation in sports, with a growing number believe in,” Poon said in the letter. of fans also watching simulcast racing on After the club’s intervention, Betfair events overseas. Turnover from simulcast races backed off, but said it would still seek to find jumped by 14.6 percent this season to HK$4.5 an accord with the HKJC. billion. At present it offers 23 simulcast days. The storied club also achieved another Total wagering turnover for the financial milestone this year, holding its first race year, which runs from July 1, 2018 – June 30, meeting at a new facility in Mainland China. 2019, was HK$247.5 billion, up 5.8 percent The $3.7 billion Conghua complex provides on the last financial year. much-needed capacity, including state-of-theStill, not all international business has art stables, training and rehabilitation facilities. been welcome at the club, which is the only So far, the club is labelling its China venture
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Asia Gaming Briefings | November 2019
a success, with horses trained in Conghua winning 109 races during the season. However, it’s not all been plain sailing. While the European Union, U.S., Japan and New Zealand recognize Conghua trained horses as having the same health status as those in Hong Kong, it’s been an uphill battle convincing Australian authorities. Biosecurity agreements between H.K. and Australia broke down in 2017 during the construction of Conghua, with Australian authorities since requiring horses travelling from Hong Kong to spend 180 days in a third country out of fear horses may be carrying equine diseases from China. Engelbrecht-Bresges says good progress is now being made in talks to end the dispute. Aside from wagering, the HKJC also offers football betting and lottery through its Mark Six operations. Football betting turnover has been growing fast and is approaching the same levels as racing turnover. In the latest year, turnover jumped 10.7 percent to a record of $114.1 billion, while Mark Six was up 4.3 percent to $4.8 billion. The HKJC notes that 60 percent of its wagering transactions are now carried out online.
