XN000022-1995-11-14 — Page 4

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RHKJC's proposal to introduce co-mingled bets to Hong Kong so that overseas punters can bet directly into the Hong Kong pools on local races was also endorsed. Betting duty for these bets will be half of the prevailing rates.

Announcing this today (Tuesday), a government spokesman said the Governor- in-Council has agreed in principle to amend Section 6 of the Betting Duty Ordinance to include these proposals.

Explaining the decision on the Quinella Place bet, the spokesman reiterated government's policy on gambling which was to restrict opportunities for gambling but to allow controlled gambling outlets to exist.

"The introduction of Quinella Place bet would not have any major gambling impact on the local community as it is only an extension of an existing bet. Moreover, it serves primarily to sustain punters' interest in local horse racing and is unlikely to induce non-punters to start betting," he said.

At present, there are two categories of betting duty under Section 6(1) of the Ordinance. The first one is charged on Win, Place, Double, Quinella and Forecast bets, at the rate of 11.5 per cent of the amount of every bet while the second is charged on any other bets at 17.5 per cent.

Since the pool of this new bet has to be split into three sub-pools, that is, for three groups of punters who have chosen the two horses in three different combinations of order, RHKJC believed that it would only be financially viable if betting duty was charged at the lower rate of 11.5 per cent.

The estimated increase in betting turnover by introducing the Quinella Place bet is about $6,660 million per season, resulting in an estimated increase in government revenue from betting duty of $760 million per season.

Regarding the overseas bets on local races, the spokesman explained that this proposal would not encourage gambling in Hong Kong as it explores overseas markets rather than expands the local gambling market. In addition, Hong Kong will benefit from this proposal as the allocation to local charities would be increased.

Hong Kong's races are, at present, simultaneously broadcast on a regular basis to Canada and the west coast of the United States where their own betting pools are

run.