Hong Kong Jockey Membership reacts angrily to urged tax rise on soccer betting, claims any transfer may ‘harm’ metropolis | HK Racing

The Jockey Membership has reacted angrily to strategies it pay greater tax on its soccer betting operation, claiming the “theoretical” HK$6 billion rise in responsibility funds would “create irreversible damages to Hong Kong”.

In a prolonged assertion, the membership hit again on the New Individuals Occasion’s suggestion the responsibility on that facet of its operation rise by 30 per cent and stated the proposal would adversely have an effect on its charity work.

The membership stated it already confronted an “uneven enjoying area from Macau in addition to unlawful and offshore bookmakers throughout the globe” and accused the NPP of missing an understanding of how the trade labored.

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Throughout a session of the Legislative Council on Thursday, the NPP submitted a proposal to Monetary Secretary Paul Chan Mo-po calling for the tax to extend from the present degree of fifty per cent, which it stated would enhance income to greater than HK$35 billion.

That introduced a stinging rebuke from the membership, to which Regina Ip Lau Suk-yee, the NPP’s chairwoman, expressed shock throughout a radio present on Friday morning.

Ip questioned why the membership was “so indignant” and stated it was not the primary time she had raised the potential for this occurring, including it had come up 3 times previously.

“The primary time, Winfried Engelbrecht-Bresges [the club’s CEO] got here together with a number of senior members, they had been saying it was not unimaginable to lift the tax, however they urged legalising basketball, golf betting amongst different sports activities,” Ip stated. “They aren’t in opposition to the proposal in precept, they only need to have extra legalised sports activities betting.”

In its assertion, the membership claimed any modifications would “destroy” its profitable enterprise mannequin, which for the monetary year-ending 2022 noticed it rake in HK$19.7 billion for soccer betting, greater than the HK$19.4 billion it took in for racing.

In keeping with the membership’s newest monetary report, it returned 77 per cent of its betting and lottery income to the town, totalling HK$41.8 billion. The remaining 23 per cent went in direction of working prices, with its top-earning worker making between HK$41 million and HK$42 million a 12 months.

Arguing in opposition to any tax enhance, the membership claimed it might be the charities that rely on it for funding that may endure, saying working income would plunge 40 per cent leading to a “zero surplus at greatest or extra doubtless a destructive one”.

This could, it stated, cease it from “making mandatory investments to safe its future and contributing to the neighborhood”, and highlighted the HK$6.6 billion it had given to the Charities Belief within the 2021-2022 monetary 12 months.

Whereas Ip identified that the federal government may present funding for charitable causes with the elevated tax income, she additionally highlighted the truth that the membership loved a “monopoly” and was not with out its faults, with members complaining concerning the excessive price of charges and problem in getting issues completed.

“Any enhance in soccer betting responsibility will take away our competitiveness and drive extra Hong Kong individuals to wager with unlawful and offshore bookmakers,” the membership stated. “Underneath these circumstances, authorities will solely obtain much less however no more tax and duties.

“Not like most different philanthropic organisations all over the world, the belief doesn’t have a sizeable reserve or endowment from which the vast majority of our donations is derived. Our reserves, whereas vital, wouldn’t help practically the extent of donations we’ve managed had been the membership’s annual working surplus to be considerably lowered, for instance by a rise in betting duties which can be already uncompetitive.”

Finally, Ip doesn’t consider the federal government would drive extra tax upon the membership, pointing to the battle of curiosity that existed with the “massive variety of higher-ranking authorities officers” having fun with honorary membership.

“We’re elevating this for dialogue solely, clearly so many higher-ranking authorities officers have an in depth relationship with HKJC, a few of them even be part of HKJC in senior positions after leaving the federal government,” she stated. “I don’t assume the federal government will actually act on the membership, I don’t see that coming actually. However are we able the place we can not even recommend something now?”

Ip stated she didn’t object to the thought of the membership providing betting on different sports activities, with Method One and the NBA significantly well-liked with offshore firms, and added the membership ought to take the lead in altering what individuals had been allowed to wager on.

“I’m open to having extra legalised sports activities for betting functions,” she stated. “However the membership at all times has the identical causes to reject [raising taxes]. On the finish of the day HKJC will solely earn a bit much less, what’s the purpose of being so indignant.”

Extra reporting by Mike Chan

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