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The Chairman of Hong Kong
Jockey Club, Mr Ronald Arculli, today urged the Hong Kong SAR Government
to reform betting duty in order to assure a future for Hong Kong racing
and to maintain the Club's support for tax and charity.
Reiterating the messages
made at the Club's Annual General Meeting on 26 August, Mr Arculli said
despite the Club's achievements acknowledged around the world, the
continuous decline in betting turnover is putting the future of Hong Kong
racing at risk.
At a pre-racing season
media conference today, Mr Arculli said the total Jockey Club turnover
was HK$88 billion last year of which HK$16.1 billion was from the first-
year operation of football betting. The racing turnover last year
declined further by 9% to HK$65 billion, its seventh year of turnover
decline and a cumulative drop of 29% since 1996/97.
The Club still managed to
donate HK$975 million to charity and community projects through the
Club's Charities Trust and remains as Hong Kong's largest single taxpayer
by paying HK$12.18 billion to the Government, including HK$8.8 billion in
racing betting duty and HK$1.65 billion gross profit tax on football
betting, Mr Arculli said.
"Excessive betting duty
rates and rigid regulations have allowed illegal and offshore betting
operators to penetrate the Hong Kong market," he warned.
"With increasing
proliferation of new casinos in nearby cities, casino boats and online
betting exchanges, turnover-based betting duty at an excessively high
rate is no longer a realistic or sustainable proposition. The Club
believes it is time to conduct a betting duty reform which allows more
flexible options including replacing betting duty with a gross profit
tax."
Mr Arculli said the UK
replaced turnover-based betting duty with a 15% gross profit tax in late
2001, which resulted in an increase of 82% in betting turnover in the
first year.
"For Hong Kong, a similar
change would allow us to recapture money drained underground or offshore.
This would be good not only for racing but also for containing the
drainage of community resources offshore and underground," he said.
"We need to create a
win-win situation that can assure a future for Hong Kong racing and to
maintain our support for tax and charity."
Turning to the initiatives
being taken by the Club, he emphasised that the Club is determined to
enhance and enrich racing experiences and enjoyment to racing fans.
Mr Arculli said
improvements to the racing facilities this year will see a new Parade
Ring featuring a new Owners pavilion, new Members and Public entrances,
designated beginners and visitors areas,
automated teller machines and live broadcast of
races at the Club's renovated off-course betting branches. These are just
some of the many enhancements to cater for the needs of customers.
In addition, the Club will
introduce new TT consolation prizes and cross-poll all-ups in the coming
season in order to satisfy customers' requirements.
Considering the reviving
tourism of Hong Kong, he believed facilitation for visitors is one of the
Club's key initiatives. Starting from the first race meeting on September
5, money exchange counters
will be in place in the racecourses. Mr Arculli added
that new betting account procedures for visitors will be introduced in
the new season enabling them to enjoy betting services on football
matches or horse races during their stay in Hong Kong.
In response to the
public's needs, the Club is to organise events for family enjoyment with
emphasis on fun-filled, diversified and partying elements. National Day
Carnival is the first major event. The Club will also consider increasing
public participation in barrier trials, which have been very popular.
In order to cope with
growing interest of overseas racing fans in Hong Kong races as well as an
additional source of revenue for the Club, Mr Arculli said the Club would
continue negotiating with overseas counterparts to explore possible
export of the world-class racing product overseas. It was confirmed that
three Asia Racing Federation racing jurisdictions would simulcast Hong
Kong's races in the coming season.
"We are glad that the
Singapore Turf Club has agreed to take 30 more day meetings on top of our
night race meetings," he said. "Another piece of good news is New Zealand
Racing Board has confirmed that they will take our day races starting
this racing season. The Club is in final stage negotiation with the Pan
Malaysian Pools regarding taking all Wednesday night meetings.
He
said the Club would also urge the government to allow more flexibility in
terms of number of race meetings and simulcast of races. Options worth
exploring include increasing the number of race meetings or overseas
simulcast races, and spreading out the meetings throughout the year.
"Even facing challenges
from all directions, the Club is committed to advancing the quality of
racing, sporting and betting entertainment," Mr Arculli said. "What
concerns us most is when will policies governing the business of racing
in Hong Kong be brought up to speed because the Club believes standing
still is never an option for Hong Kong as a whole."
HKJC Media Release Published 30/08/04
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