- 15 -
Betting Duty (Amendment) Bill
Following is the speech by the acting Secretary for Home Affairs, Mrs Stella Hung, in moving the second reading of the Betting Duty (Amendment) Bill 1995 in the Legislative Council today (Wednesday):
Mr President,
I move the Second Reading of the Betting Duty (Amendment) Bill 1995.
The Bill has three objectives: first, to introduce a Quinella Place bet at the betting duty rate of 11.5%; second, to impose rates of duty in respect of overseas bets on Hong Kong races into the Hong Kong pools at half of the prevailing rates; and third, to transfer the power to make regulations under section 7 of the Ordinance from the Governor in Council to the Secretary for the Treasury.
The Quinella Place bet is an extension of the existing Quinella bet. It requires the punter to select two horses to finish in any order in the first three places to be eligible for a dividend. Since the pool of the Quinella Place bet has to be split three ways, the bet will be introduced at the lower betting duty rate of 11.5% to make it financially viable. The Administration considers that its introduction would sustain punters' interest in horse racing, but would not induce non-punters to start betting. The resultant increase in Government revenue from betting duty is estimated at $760 million per annum. Clause 2 of the Bill amends section 6(1)(a) to include the Quinella Place bet.
At present, there are separate betting pools on Hong Kong races in Canada and the west coast of the United States, and the betting duty goes to the respective governments. The Royal Hong Kong Jockey Club proposes that the Hong Kong Government should allow the acceptance of overseas bets into the Hong Kong pools at half of the prevailing rates. The other half will be allocated to the respective host governments, subject to the Club's negotiations with them. This proposal aims to tap the overseas markets. It will not have the effect of encouraging gambling in Hong Kong. Government revenue from betting duty on overseas bets from North America is estimated at over $100 million per season. In addition to betting duty, Hong Kong will benefit in terms of an increase in the allocation of funds from the Royal Hong Kong Jockey Club to local charities. Clause 2 of the Bill amends section 6(1) of the Ordinance to impose rates of duty in respect of overseas bets at half of the prevailing
rates.