Hong Kong’s illegal sports betting market generated a total of HK$500 billion (€47.6 billion/$64.5 billion) last year.
The South China Morning Post newspaper reports that a study by the Hong Kong Jockey Club into betting patterns since it introduced football betting in 2003 found that the amount generated by illegal betting is almost four times what the club’s horse racing and football betting operations posted last year.
While illegal betting generated a huge amount in turnover, the city itself lost HK$12 billion in illicit bets.
Jockey Club director Patrick Jay said that the problem is now too big for law enforcement to tackle and would instead require a coordinated government and societal response.
“It’s time for people to stop thinking that illegal sports betting is not a blood crime,” Jay said.
“The links to organised crime are real and HK$12 billion is equivalent to 60% of the Hong Kong government’s Community Care Fund. That is 17,000 public housing units, 300 elderly care homes or 100 secondary schools.”
The news comes ahead of the start of the 2014 Fifa World Cup national team football tournament this Thursday.
During the 2010 edition of the tournament, HK$386 million was confiscated in football betting receipts from Hong Kong punters.
“The police do the best they can, but what does HK$386 million represent when we are looking at a turnover of HK$500 billion? It’s a very small drop in a very, very big ocean,” said Jay.
“The Jockey Club offers 800 horse races and 10,000 soccer matches a season with limited betting options. Our margins are smaller and there is the tax take.
“Illegal bookmakers offer hundreds of thousands of horse races from around the world, tens of thousands of soccer matches and many other sports. Plus they offer an array of different types of bets – and they offer credit. It’s a no-brainer for the customer.”
Martin Purbrick, the club’s director of security, added: “Illegal betting revenue is huge income for criminal groups and continues to grow, funding other criminal activities that are often part of sophisticated criminal enterprises.
“We need a strategy that includes the media to highlight the criminal problem, banks to prevent payments to and from illegal betting operators, police to prioritise cross-border efforts against operators and a legal betting product range to compete with illegal bookmakers.”
source : www.igamingbusiness.com
