Following its Annual General Meeting on 4 September, the Hong Kong Jockey Club (the Club) has announced its financial results for the 2023/24 fiscal year, ending 30 June 2024. Despite facing various external challenges, including shifts in consumer behavior and increased competition, the Club has maintained steady overall turnover and set a record with its contributions to the community, totaling HK$40.1 billion (£3.9 billion).
Financial Performance in FY2023/24
The Club’s financial year was marked by a 9.3% decline in local racing wagering turnover for the racing season (10 Sep 2023 – 14 Jul 2024) due to the post-pandemic shift toward digital experiences and increased outbound travel. Racing turnover fell by 4.5% to HK$134.7 billion (£13.1 billion) for the season and by 3.1% to HK$136.1 billion (£13.3 billion) for FY2023/24.
Despite these challenges, the Club’s efforts to globalize its racing operations showed positive results. Commingling turnover on Hong Kong racing increased by 13.7% to HK$28.8 billion (£2.8 billion), accounting for 23.7% of local racing turnover. The Club also expanded its simulcasting and World Pool offerings, driving an 8.7% increase in total turnover to HK$12.8 billion (£1.2 billion) for these segments.
Football and Lottery Performance
Football betting achieved a record turnover of HK$160.3 billion, up 2.2% from the previous year, driven by additional fixtures, 24-hour operations, and new products like Same Game All Up and Early Settlement. However, income from football fell by 16.6% to HK$8.1 billion, primarily due to the introduction of the Special Football Betting Duty, which adds HK$2.4 billion in annual contributions for five years starting April 2023.
Mark Six lottery turnover also saw a strong performance, increasing by 13.3% to HK$8.5 billion due to refinements in the jackpot reserve model that allowed for more frequent and higher-value jackpots.
Record Community Contributions
Despite reduced income, the Club contributed a record HK$40.1 billion (£3.9 billion) to the community in FY2023/24. This includes HK$29.9 billion (£2.9 billion) in betting duty, profits tax, and Lotteries Fund contributions, alongside a record HK$10.2 billion (£996.2 million) in approved charity donations. The Club’s Charities Trust supported 173 charitable projects during the year, targeting key areas such as elderly care, youth development, and mental health.
Global Racing Success and Future Developments
Hong Kong racing continued to gain international recognition in 2023/24. The Club’s flagship Longines Hong Kong International Races and FWD Champions Day attracted 32 overseas runners, and Hong Kong horses won three of the four Hong Kong International Races. Notably, Hong Kong’s Romantic Warrior became the first horse from the city to win Australia’s W.S. Cox Plate and Japan’s Yasuda Kinen.
Looking ahead, the Club plans to further expand its global presence by developing new wagering technologies and World Pools, with the goal of making Hong Kong the global hub for wagering on top international races. The Club is also focusing on enhancing customer engagement through a new digital racecourse concept and transforming retail branches into sport-dine-play hubs.
Addressing the Threat of Illegal Gambling
The Club has identified illegal gambling as a growing threat, with estimates indicating illegal turnover surpassing legal channels. In response, the Club continues to work closely with the Hong Kong SAR Government to address the issue, though any expansion of legal sports betting remains a governmental decision.
Celebrating 140 Years of Service to Hong Kong
As the Club marks its 140th anniversary, it will launch a series of initiatives celebrating its history and contribution to society under the theme “With You. Then. Now. Always.” These events will highlight the Club’s unique integrated business model, which has played a vital role in generating tax revenue, charitable support, and employment opportunities for Hong Kong.
The Club’s 140th Anniversary Raceday, set for 20 October, will be the first of many celebratory events in the coming months.
Reflecting on the year, Club Chairman Michael Lee reinforced the Club’s commitment to fulfilling its purpose of acting for the betterment of our society, “The Club will continue to invest and, if necessary, make use of its reserves, both to ensure the Club’s long-term future and to uphold our commitment to the community.”
Club CEO Winfried Engelbrecht-Bresges said: “Looking back over the past year I am once again struck by the enormous resilience of the Club. Having taken everything that the pandemic had to throw at us, we have had to contend with an extremely challenging macro-economic environment as well as significant changes in customer behaviour as they seek out new experiences online or in outbound destinations. Despite this, the Club has continued to deliver outstanding racing entertainment and the strongest support for our community.”
