‘All risks must be controlled,’ John Lee says as he defends basketball betting U-turn

Hong Kong’s leader has defended the government’s decision to put the legalisation of basketball betting on hold, stressing the policy was never intended to encourage gambling and that all risks must be controlled before any further steps are taken.Chief Executive John Lee Ka-chiu made the remarks on Tuesday after the government’s surprising U-turn last week to halt the authorisation of basketball betting, citing the rapid growth of prediction markets – cryptocurrency-based platforms that allow users to trade on future events.“I think it is the right approach, and it is also right to be cautious, because we never encourage gambling,” Lee said before a weekly meeting of the city’s top decision-making body, the Executive Council.“It is important that [the Home and Youth Affairs Bureau] thinks thoroughly before they proceed further so as to ensure that all these risks are properly controlled.”Lee said the rapid growth of prediction markets had exceeded expectations, with a 130 per cent surge over two years, and that the pace continued to accelerate.He added that such platforms involve speculation and virtual assets, requiring a study of their impact on the city’s gambling landscape.He also noted that 40 per cent of prediction market activity was tied to sports events, describing it as a “worrying trend”, and said it was appropriate for the government to regularly review the situation and mitigate potential risks.“If we do not seriously look at the risk it will create, I do not think it is the right thing for the Bureau to just blindly go ahead with what has been suggested,” Lee noted.However, he stopped short of providing any timetable for issuing a basketball betting licence.Chief Executive John Lee says the rapid growth of prediction markets has exceeded expectations. Photo: Eugene LeeThe city’s leader also acknowledged the Hong Kong Jockey Club’s efforts and contributions as the sole betting operator, providing legal gambling channels for horse racing, football and the Mark Six, while devoting resources to the community and charitable causes.Further Reading“I am confident that they will continue to run the existing legal gambling operations well and also remain fully committed to devoting resources to social and charity activities,” Lee said.The South China Morning Post learned that the Jockey Club earmarked HK$1 billion (US$127.7 million) and hired 180 staff to develop a basketball wagering system, including HK$400 million for preparatory work and a planned HK$600 million for related infrastructure.The club is now expected to take a financial hit, with the investment to be redirected to modernise its football wagering system and combat illegal betting.Last Monday, the government confirmed that it had suspended plans to launch basketball betting, originally scheduled for September. The proposal was first unveiled by Financial Secretary Paul Chan Mo-po in his annual budget in February last year.A one-month public consultation in April found 94 per cent of respondents supported the move, and the Legislative Council endorsed the bill last September.Home and Youth Affairs Minister Alice Mak Mei-kuen said last week the decision to pause the authorisation was made solely by the government after considering Hong Kong’s circumstances, the prevalence of illegal betting and the rapidly evolving external environment, despite speculation it was intended to align with Beijing’s crackdown on gambling.