New regime: Secretary for Home Affairs Dr Patrick Ho exchanges documents with Jockey Club Chairman Ronald Arculli.

The Home Affairs Bureau has issued a licence to Hong Kong Jockey Club Horse Race Betting Limited, which will take effect September 1.

This is the first time the Government has rationalised the regulatory regime of horse race betting. The Jockey Club can conduct betting on approved horse races from September 1 this year to August 31 next year.

The licence covers a number of mandatory conditions to prevent underage and excessive gambling, minimising the negative impact of punting on society, particularly adolescents.

It is subject to variation and imposition of new conditions by the Secretary for Home Affairs on the advice of the Betting & Lotteries Commission - the functions of which have been expanded to include advising the Government on the regulation of the conduct of horse races and the variation of the licensing conditions.

The Secretary for Home Affairs can also consult the commission and issue codes of practice as and when appropriate to prescribe detailed guidelines on particular aspects of the licensing conditions.

Gambling awareness

The bureau will continue to enhance public awareness of the risk of gambling-related activities and help them better understand the gambling problem. To this end, the Jockey Club has undertaken to contribute up to $15 million each year for the next two years to the Ping Wo Fund to address gambling problem through public education and preventive programmes.

Specifically, the fund will finance counselling, treatment and remedial services for problem and pathological gamblers. The club can consider requests to raise its contribution to the fund when such applications are received.

Rebate programme

HKJC Horse Race Betting Limited will introduce a new rebate programme from the start of the 2006-07 racing season, to combat the discount offers made by illegal bookmakers and woo customers targeted by the illegal market.

Rebates apply to bets placed by customers in the Win, Place, Quinella or Quinella Place betting pools for all local races. Any losing betline or ticket with a total losing bet amount of $10,000 or above in those designated pools will be eligible to receive a rebate of 10% of the total losing bet amount.

A rebate also applies to All Up or Cross Pool All Up bets in those designated pools. The total losing bet amount for such bets will include both the losing primary investment and any losing re-investment generated from the bets.

The bureau will closely monitor the initial impact of the rebate arrangements and, if necessary, introduce more guidelines in the code of practice. The Betting & Lotteries Commission will be consulted on this.