TNAG-1552-FCO40-2116-Hong-Kong-illegal-betting-syndicate-1986 — Page 6

"(a)

off-course betting be legalised;

(b)

off-course betting be conducted by means of an off-course totalisator monopoly system;

(c)

(d)

the Royal Hong Kong Jockey Club, should, if willing, operate the off-course totalisator system;

this change should be introduced gradually, to test public opinion and avoid criticism that Government is encouraging gambling.

In April 1974, after appropriate amendment to the Betting Duty Ordinance, Chapter 108, the Jockey Club opened its first off-course. betting centre. In December 1974, having considered memorandum XCC(74)92, Members expressed no objection to the establishment of a few legal off-course betting centres in public housing estates.

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Initially, because of difficulties over premises and equipment, the increase in the number of such centres was slow and gradual; by the end of 1974, a total of only 28 off-course betting centres had been established. An expansion programme soon followed, and the number of off-course betting centres reached 134 in 1975/76, including four centres in public housing estates. This figure has since been reduced to 114 in 1977/78 and the current racing season, mainly due to the Jockey Club's own adjustment arising from expiry of leases, relocation and provision of purpose- built centres.

19

In establishing new centres, the Jockey Club's main consideration, in addition to assisting Government's objective in diverting unlawful gambling on horse racing into legal channels, is commercial viability. Largely as a result of strong, though short- lived, opposition to a proposed centre from residents of Ko Chiu Road Housing Estate in early 1976, an assessment has since been made of local public opinion (by the City District Officers and the District Officers) before approval is given to the Jockey Club's applications to open new centres. This approach has proved to be generally satisfactory, in that no major furore to any site has since occurred, despite criticism from certain quarters of the 'proliferation' of off-course betting centres. It is therefore considered that local public opinion must remain as essential guiding principle in locating off-course betting centres.