According to local media, the Home Affairs and Youth Bureau has halted plans to launch regulated basketball betting in Hong Kong, despite lawmakers passing the bill to legalize it seven months ago.
The Hong Kong Jockey Club (HKJC) was due to handle the wagering market, and had previously estimated that basketball betting could generate HK$1.5bn (US$191.5m) in annual tax revenue.
A Home Affairs and Youth Bureau spokesperson said on Monday that launching any new markets would likely draw too much attention to prediction market platforms, which are illegal and offshore sites.
The spokesperson said: “Given the latest developments, the Government considered it necessary to study the emerging model and platform in greater depth.
“To protect public interest from harm, new betting projects should not proceed until conditions are mature.”
As such, legal sports betting will not progress in the country until the threat of illegal prediction market platforms has lessened.
The Bureau pointed to figures from the US that showed trading volume in prediction markets had increased by 300% last year to US$64bn, despite not being regulated by state authorities.
The spokesperson continued to explain that, considering this rapid growth, prediction markets are likely to bring considerable uncertainty to the international betting industry.
The HKJC said in an internal memo that it respected the Government’s decision and would wait for further updates.
A spokesperson for the HKJC said that the club remained resilient, competitive and ready to respond to the growing threat of illegal and offshore gambling.
The HKJC currently offers wagering markets on horseracing and football matches
