Changing tastes and the economic downturn are posing a rare challenge to the Hong Kong Jockey Club (HKJC). The club has long played a central role in gambling-obsessed Hong Kong,where it is the only authorized operator of horse-racing, but even this august institution has not been able to escape the financial turbulence.
Turnover Drops at Hong Kong Jockey Club
Club officials told Bonnie Engel of Hong Kong Business magazine in December 2008 that there was a possibility that the drop in betting turnover could reach 10 percent in 2008/2009, forcing the club to dip into its reserves. The magazine noted that this would be the first time in the 120-year history of the club that its racing operations had not been profitable.
The Jockey Club accounts for around eight percent of Hong Kong’s tax revenues, and is the territory’s largest taxpayer and donor to charitable causes. The Jockey Club tax reform package, implemented in 2006, binds the club to making a minimum duty payment of HK$8 billion a year. However, other elements of the reform – granting the club five more race days a year, plus 20 more simulcasts of overseas races – were taken out to ensure the Bill’s speedy passage through Hong Kong's Legislative Council.
Winfried Engelbrecht-Bresges, chief executive officer of the Jockey Club, believes the extra days and simulcasts are necessary. “The extra race meetings and simulcasts will help carry us through the bad times,” he told Hong Kong Business. “We are also seeking a waiver for the HK$8 billion tax guarantee.”
Horse-racing for the Twenty-first Century
The Club is aware that times are changing in Hong Kong. Younger people, not as keen on horse racing as the older generation, have more leisure and gaming opportunities available to them, such as the proliferation of casinos in nearby Macau.
The Club plans to upgrade its facilities to ensure people keep coming for a range of events beyond horse racing – weddings, corporate events exhibitions and so on. “We want to revitalise the image of horse racing by positioning it as a lifestyle entertainment choice,” said Engelbrecht-Bresges.
Worthy Causes
While the club may have to cut back its charitable donations in the current climate, it continues to give money to worthy causes. These include the commissioning of a new marine education centre in Sai Kung, and the refurbishment of a derelict factory into an arts hub at Shep Kip Mei HKJC Creative Arts Centre.
In January 2009, the club announced it would donate HK$2 million to St. James' Settlement to support its People's Food Bank.
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