Horse Racing News: China May Make Gambling on Races Legal

Horse Racing News: China May Make Gambling on Races Legal

Horse Racing News: China May Make Gambling on Races Legal

With existing exceptions on Basketball and Soccer, talk of Casino’s in Hainan and the move by Hong Kong Jockey Club into China there seems to be an increasing chance of live betting coming to China’s racetracks.

China has embraced the sport with a passion over the last decade, Chinese buyers are present at every major sale, they are buying and racing quality race horses around the world and at home, the momentum of the industry in China is incredible and betting on racing will take the sport to a brand new level. Demand from China has already help lift global bloodstock valuations and permission for gambling would yet again boost the sales around the world.

In December Hong Kong SAR and Chinese Mainland authorities signed four memoranda of understanding reinforcing policies and procedures governing the operation of the biosecurity zone in the Conghua District of Guangzhou and related horse movement arrangements between the Club’s new Conghua Training Centre and Hong Kong. This biosecurity zone is the only internationally-recognised Equine Disease Free Zone (EDFZ) in the Chinese Mainland. The signing of the memoranda facilitates the opening of the Conghua Training Centre in August 2018 in support of the further development of Hong Kong racing. The ICEDFZ is jointly hosted by the Hong Kong Jockey Club (HKJC) and the Agriculture, Fisheries and Conservation Department (AFCD) of the Hong Kong SAR.

Asian Based Knightsbridge have already committed to send 3 horses to China in early 2018, the company will be racing, breeding and syndicating in China. If you would like to getinvolvedin racing in China contact Knightsbridge.

The Casino News

Beijing is considering plans to allow gambling on Hainan island and end a long-standing ban in China, which could open the way for casinos in the province and threaten Macau’s lucrative gaming industry, Bloomberg reported Friday.

Chinese government agencies meeting under a reform committee headed by President Xi Jinping are considering licensing online games, lotteries and sports betting in the southern island province, the financial news agency said, citing unidentified people close to the matter.

It would be a historic turnaround for the communist government which has long strictly banned all forms of gambling in mainland China and comes against the backdrop of its massive campaign against corruption.

The proposal, which is still in preliminary discussions, could legalise gambling only in Hainan province, a tropical island off the south coast, and over the longer term open the door to development of physical casinos there, Bloomberg said.

Such a development would be part of a programme of reforms designed to attract more visitors to the island, where many tourist infrastructure projects are under way.

Development of a gaming industry in Hainan would create a new rival for semi-autonomous Macau, the only part of China were casino gambling is legal and the world’s largest gaming market, dwarfing Las Vegas.

Macau’s revenues took a hit after Xi declared his war on graft in 2014, with many mainland big spenders staying away from the enclave, which had gained a reputation as a centre for laundering illicit money out of China.

Casino giants have since launched a slew of new mega-resorts, offering everything from fine dining to theme parks as they look to attract mass-market gamblers to compensate for the fall in high rollers.

The gamble appears to have paid off as Macau’s gaming revenues soared 36 percent year-on-year in January.

But allowing casinos in Hainan could threaten the prosperity of Macau, depriving it of some of its customers.

Shares in Macau casino giants Sands China, MGM China and Wynn Macau slid more than six percent during intraday trading in Hong Kong on Friday following the Bloomberg report.

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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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