The Hong Kong Jockey Club (HKJC) has reported a notable drop in income for the fiscal year ending 30 June 2024, totaling HK$14.8 billion (US$1.90 billion), a 10.5% decrease from the previous year. This decline is largely attributed to an increased duty on football betting and a complex macroeconomic landscape.

Challenges in racing and betting:

The club has faced a multitude of challenges that contributed to a 9.3% decrease in local racing turnover, with competition intensifying from Macau’s casinos and the pervasive issue of illegal gambling. Despite these hurdles, the overall turnover remained stable at HK$304.9 billion (US$39.1 billion).

Football betting, while achieving a record turnover of HK$160.3 billion (US$20.6 billion) this year—an increase of 2.2%—saw its income significantly reduced by 16.6% to HK$8.1 billion (US$1.04 billion). This reduction was due to an additional HK$2.4 billion (US$308 million) in football betting duties imposed during the fiscal year.

Horse racing turnover also experienced a downturn, dropping 3.1% year-on-year to HK$136.1 billion (US$17.5 billion). This decline reflects broader market challenges and shifts in consumer behavior, with a growing preference for digital and travel experiences post-pandemic.

Innovation and community contributions:

On a brighter note, the Mark Six Lottery saw a 13.3% increase in turnover to HK$8.5 billion (US$1.09 billion), thanks to improvements in the jackpot reserve model. These adjustments have allowed HKJC to offer more substantial jackpots, attracting greater participation.

Despite the financial setbacks, HKJC made significant contributions to the community in FY24. It donated a record HK$40.1 billion (US$5.14 billion) to various causes, including HK$29.9 billion (US$3.84 billion) in betting duties, profits tax, and Lotteries Fund contributions, along with HK$10.2 billion (US$1.31 billion) in approved charity donations.

Leadership perspective on resilience and future outlook:

As Inside Asian Gaming reports, HKJC’s CEO, Winfried Engelbrecht-Bresges, reflected on the challenges faced over the past year, emphasizing the club’s resilience. “Having taken everything that the pandemic had to throw at us, we have had to contend with an extremely challenging macro-economic environment as well as significant changes in customer behavior as they seek out new experiences online or in outbound destinations,” he said.

Despite these challenges, Engelbrecht-Bresges praised the club’s ability to continue delivering exceptional racing entertainment and robust support for the community. He remains optimistic about the club’s capacity to adapt and thrive in the changing landscape.