The Hong Kong Jockey Club (HKJC) recorded a record HK$331.7 billion (approximately $42.5 billion) in betting and lottery turnover for the financial year ended June 30, 2026. The figure increased 3.6% year-on-year.
Total gaming and non-gaming revenue rose 3.1% to HK$50.8 billion ($6.5 billion). However, HKJC warned that rising competition from illegal operators, heavy taxation and major investment spending are putting additional pressure on its financial model.
Football and racing drive growth
Racing turnover increased 3.6% to HK$143.3 billion ($18.4 billion). Commingled betting on Hong Kong racing from 26 jurisdictions rose 9% to HK$34.3 billion ($4.4 billion), accounting for almost a quarter of total racing turnover.
Simulcast wagering increased 21.4%, while World Pool turnover rose 23%.
Football remained HKJC's largest betting vertical, generating HK$179 billion ($23 billion) in turnover after a 3.6% increase. Mark Six lottery turnover rose 4.2% to HK$9.4 billion ($1.2 billion).
The Club contributed HK$39.3 billion ($5 billion) to the community during the year. This included HK$29.3 billion ($3.8 billion) in betting duties and profits tax, HK$1.4 billion ($179 million) for the Lotteries Fund and HK$8.6 billion ($1.1 billion) in approved donations from the Jockey Club Charities Trust.
HKJC warns of illegal betting competition
Despite its record turnover, HKJC identified illegal betting as one of the biggest threats to the regulated market. Offshore bookmakers operate without the same tax burden and can offer wagering on a wider range of sporting events.
Tax on legal racing betting in Hong Kong can reach 75%, while football betting is taxed at 50% of gross margin. HKJC also paid an additional HK$2.4 billion ($308 million) special football betting duty during the year.
The situation has been further complicated by the government's decision to pause plans for regulated basketball betting. HKJC had already invested in technology and preparations for a potential 2026 launch, but is now redirecting its new sports wagering platform primarily towards football.
The Club argues that without a legal basketball betting product, existing demand could remain with illegal operators that have expanded through digital platforms, cryptocurrency and social media.
Conghua racing plans delayed
HKJC has also postponed planned October racing at Conghua Racecourse in Guangzhou after Mainland authorities conducted an updated risk assessment. Additional mitigation measures will be required before racing can proceed, and no replacement date has been announced.
Conghua remains an important part of HKJC's long-term racing strategy. More than 600 horses are currently trained there, while the Club's total horse population exceeds 1,300.
At the same time, international interest in Hong Kong racing continues to grow. HKJC recorded 401,259 tourist visits during the season, up 105% year-on-year and roughly four times the level recorded in 2023/24.
Investment spending to pressure future results
The Jockey Club Charities Trust approved HK$8.6 billion ($1.1 billion) for 191 charitable and community projects during the year. Since 1997, the Trust has approved HK$98 billion in donations.
Despite increasing turnover by more than HK$11 billion, the Club's combined contribution to the government and community projects rose by only HK$227 million.
HKJC expects its operating surplus to decline further as it continues investing in Conghua, digital infrastructure, racecourse redevelopment and new wagering technology. The Club plans to cut costs and develop additional non-gaming revenue streams while maintaining its community funding commitments.
Source: iGaming.News
