The Hong Kong Jockey Club (HKJC) reported that revenue for the fiscal year ending June 30, 2024, significantly decreased to HK$14.8 billion (US$1.9 billion), a 10.5% drop from the previous year. This decline is mainly attributed to increased football betting taxes and a complex macroeconomic situation.
Challenges in horse racing and betting:
The Club faces multiple challenges, leading to a 9.3% decrease in local horse racing turnover, intensified competition from Macau casinos, and widespread issues with illegal gambling. Despite these obstacles, the overall turnover remained stable at HK$304.9 billion (US$39.1 billion).
This year, football betting turnover reached a record HK$160.3 billion (US$20.6 billion), growing by 2.2%, but revenue significantly dropped by 16.6% to HK$8.1 billion (US$1.04 billion). This decrease was due to an additional HK$2.4 billion (US$308 million) in football betting taxes levied this fiscal year.
Horse racing betting turnover also declined, down 3.1% to HK$136.1 billion (US$17.5 billion). This drop reflects broader market challenges and shifts in consumer behavior, with consumers increasingly turning to digital and travel experiences post-pandemic.
Innovation and community contribution:
Fortunately, the lottery's prize pool grew by 13.3% to HK$8.5 billion (US$1.09 billion), thanks to improvements in the jackpot reserve model. These adjustments have enabled the Hong Kong Jockey Club to offer larger jackpots, attracting more participants.
Despite financial setbacks, the Hong Kong Jockey Club made significant contributions to the community in the 2024 fiscal year. It donated a record HK$40.1 billion (US$5.14 billion), including HK$29.9 billion (US$3.84 billion) in betting taxes, profit taxes, and lottery fund donations, and HK$10.2 billion (US$1.31 billion) in approved charitable donations.
Leadership's view on resilience and future prospects:
According to Inside Asian Gaming, HKJC CEO Winfried Engelbrecht-Bresges reflected on the past year's challenges, emphasizing the club's resilience. He stated, "After everything the pandemic has brought us, we had to face a highly challenging macroeconomic environment and significant changes in customer behavior as they seek new experiences online or at outbound destinations."
Despite these challenges, Engelbrecht-Bresges remains appreciative of the club's ability to continue providing excellent horse racing entertainment and strong support for the community. He remains optimistic about the club's ability to adapt and evolve in a changing environment.
