BETTING DUTY ORDINANCE

BETTING DUTY ORDINANCE

LAWS OF HONG KONG

BETTING DUTY ORDINANCE

CHAPTER 108





CHAPTER 108

BETTING DUTY

Tomake provision for the taxation of bets on authorized totalizators or pari-mutuels
or lotteries and on contributions or subscriptions towards authorized cash-
sweeps and to amend the law relating to gambling.

(Amended 17 of 1933 s. 2; 51 of 1975 s. 2)

[1 January 19321

Originally 40 of 1931 (Cap. 108 R. Ed. 1950) 17 of 1933, 26 of 1934, G.N. 697 of 1934, 25 of
1937, G.N. 906 of 1937,33 of 1939,33 of 1940, 20 of 1941, 7 of 1947, 20 of 1948, 6 of
1949, 49 of 1949, G.N.A. 50 of 1952, G.N.A. 37 of 1961, 70 of 1973, L.N. 87 of 1975, 31
of 1975, 51 of 1975, 19 of 1944, L.N. 97 of 1984, L.N. 65 of 1985, 70 of 1985, R. Ed.
1985, 1 of 1988, 37 of 1989 14v2J7fig

1. Short title

This Ordinance may be cited as the Betting Duty Ordinance.

2. Authorization of club cash-sweeps
on horse and pony races

Ordinary social or sporting clubs in Hong Kong may, with the permission in
writing in each case of the Chief Secretary and subject to such conditions as he may
see fit to impose, conduct cash-sweeps on horse or pony races:

Provided that not less than 88%, or in the case of a club organizing the race not
less than 72%, of the total contributions or subscriptions, after deduction of the
duty, shall be devoted to prizes for the subscribers.

(Amended 25 of 1937 s. 2; 20 of 1941 s. 2; 7 of 1947 s. 2; 51 of 1975 s. 3;
37 of 1989 s. 3)

3.Authorization of totalizator or pari-mutuel
betting on horse or pony races

(1) Ordinary race, jockey or hunt clubs which organize meetings for horse or
pony races in Hong Kong may, with the written permission of the Chief Secretary
and subject to such conditions as he may see fit to impose, conduct totalizator or
pari-mutuel betting on the race course premises on such races. (Amended 37 of 1989 s.
3)





(2) The Royal Hong Kong Jockey Club may, with the written permission of the
Chief Secretary and subject to such conditions as he may see fit to impose, conduct
totalizator or pari-mutuel betting on horse or pony races at or from premises other
than the race course premises where the races are held. (Amended 37 of 1989 s. 2)

(3) Not less than

(a)in the case of betting of a form referred to in section 6(1)(a), 83%; and
(Amended L.N. 65 of 1985)

(b)in the case of betting of a form referred to in section 6(1)(b), 77%,
(Amended L.N. 97 of 1984; L.N. 65 of 1985)

of the total bets on a totalizator or pari-mutuel shall be allocated in prizes in that or
any other totalizator or pari-mutuel in such manner as the club organizing the
totalizator or pari-mutuel may determine. (Replaced 19 of 1983s.2)

(4) The percentages of the total bets specified in subsection (3)(a) and (b) may
be amended by resolution of the Legislative Council. (Added 19 of 1983 s.2)

(Replaced 70 of 1973 s.2. Amended51of 1975ss.3&4)

4. Allocation of chances in cash-sweeps

(1) In the case of cash-sweeps organized by clubs in Hong Kong the chances
shall be allocated by numbered tickets issued in books with or without counterfoils
as the Chief Secretary may decide:

Provided that the Chief Secretary may permit any club to issue lists of numbers
against which the names of the subscribers shall be entered.

(2) In the case of cash-sweeps organized by clubs or other bodies elsewhere,
ordinary social, sporting race, jockey or hunt clubs in Hong Kong as agents for the
organizing club or other body and with the permission in writing of the Chief
Secretary may provide lists of numbers, against which their members may sign their
names as subscribers for chances, or may issue books of numbered tickets, as the
Chief Secretary may decide.

(Amended 25 of 1937 s. 2; 51 of 1975 s. 3; 37 of 1989 s. 3)

4A. Appointment, function and constitution

of Hong Kong Lotteries Board

(1) There shall be a Hong Kong Lotteries Board whose function shall be to
conduct such lotteries as may be permitted by licence granted under section 4D, and
for the purpose of any such lottery the Board may use such of the facilities of the
Club as may be agreed between the Board and the Club.

(2) The Board shall consist of 7 members appointed by the Governor of whom





(a) 4 shall be Stewards of the Club nominated by the Club; and

(b) 3 shall be other persons.

(3) The Governor shall appoint one of the members of the Board to be the
Chairman thereof.

(Added 51 of 1975 s. 5)

4B. Meetings of the Board

(1) The Board shall meet at such times and at such places as the Chairman may
appoint.

(2) At any meeting the Chairman shall preside:

Provided that if at any meeting the Chairman is absent there shall preside either

(a)such member as the Chairman may direct to preside for the purposes
of that meeting; or

(b)in the absence of any such direction, one member of the Board elected
from among those present at such meeting.

(3) At any meeting of the Board 3 members shall be a quorum.

(4) The Board may make standing orders for regulating the procedure at, and in
connection with, its meetings.

(Added 51 of 1975 s. 5)

4C. Allocation of proceeds of a lottery

(1) 59% of the proceeds of a lottery shall be allocated in prizes in that or any
other lottery as the Board may determine. (Replaced 19 of 1983s.3. Amended L.N. 97 of
1984; ]of 1988s.2)

(1A) The percentage of the proceeds specified in subsections (1), (2) and (3)
may be amended by resolution of the Legislative Council. (Added 19 of 1983 s. 3; 1 of
1988 s. 2)

(2) The Board shall pay to the Club 7.5% of the proceeds of a lottery on account
of all costs, charges, expenses, fees and commitments incurred or charged by the
Club in providing facilities in order for the Board to perform its function under
section 4A(1). (Amended 70 of 1985 s. 2; 1 of 1988 s. 2)

(3) 321 of the proceeds of a lottery shall be paid into the Lotteries Fund.
(Replaced 1 of 1988 s. 2)

(Added 51 of 19 75 s. 5)

4D. Authorization of lotteries

(1) The Chief Secretary may by licence authorize the Board to conduct such
lottery as may be specified in the licence.

(2) Any licence granted under subsection (1) may relate to more than one
lottery.





(3) The Chief Secretary may, when granting a licence under subsection (1),
impose such conditions as he thinks fit, and may at any time add to or vary any such
conditions.

(Added 51 of 1975 s. 5)

4E. Interpretation

In sections 4A, 4B, 4C, 4D and 6-

'Board' means the Hong Kong Lotteries Board established under section 4A;
'Club' means the Royal Hong Kong Jockey Club;

'Lotteries Fund' means the Lotteries Fund established by resolution made and
passed by the Legislative Council on 30 June 1965 (Cap. 2 sub. leg.) and
published in the Gazette;

'lottery' means any lottery conducted by the Board under a licence granted under
section 4D;

'proceeds of a lottery' means the total or aggregate amount of the bets made on a
lottery.

(Added 51 of 1975 s. 5)

5. Restriction on sale of tickets

No tickets, lists, receipts, or other substitutes for tickets recording the numbers
of the chances allocated for any cash-sweep, totalizator or pari-mutuel may be made,
printed, issued, sold or offered for sale except by or on behalf of a club which has
received the permission of the Chief Secretary under this Ordinance.

(Replaced6 of 1949s.2. Amended51of 1975s.3)

6. Duty on bets and cash-sweeps

(1) On every bet made on any totalizator or pari-mutuel authorized by this
Ordinance, there shall be charged a duty

(a) in the case of a win bet, a place bet, a double bet, a quinella bet
and a forecast bet, at the rate of 9.5% of the amount of every
such bet; and

(b)in the case of any other form of bet, at the rate of 16% of the amount of
every such bet. (Amended 19 of 1983 s. 4; L.N. 97 of 1984; L.N. 65 of 1985)

(1A) There shall be charged on the proceeds of a lottery duty at the rate of
30%. (Added51of 1975s.6. Amended 19 of 1983s. 4; L.N. 97of 1984)

(2) On every cash-sweep ticket sold and on every cash-sweep chance allocated
by list as provided in section 4 there shall be charged a duty at the rate of 30% on
the amount paid, contributed or subscribed. (Amended 19 of 1983 s. 4; L.N. 97 of 1984)





(3) The rates of duty specified in subsections (1), (1A) and (2) may be

amended by resolution of the Legislative Council. (Amended51of1975s.6)

(4) The secretary, treasurer and every steward and member of the

committee of management of the club, as well as the club itself if a corporation,
shall be jointly and severally liable for the duty payable.
(5) For the purposes of this section-

'double bet' means the form of betting where the first horse in each of two races has
to be selected;

'forecast bet means the form of betting where, in one race, the first and second
horses in the correct finishing order have to be selected;

'place bet means the form of betting where, in one race, the first horse, or the first or
second horse, or the first, second or third horse, as the case may be, has to be
selected in order to be paid a dividend from the place pool;

'quinella bet' means the form of betting where, in one race, the first two horses have
to be selected;

'win bet' means the form of betting where, in one race, the first horse has to be
selected.

(Replaced L.N. 87 of 1975; 31 of 1975 s. 2)

7. Regulations

The Governor in Council may by regulation provide for securing the

payment of duty and generally for carrying the provisions of this Ordinance into
effect.

(Amended 33 of 1939; G.N. 840 of 1940 Supp, Schedule)

8. Penalties

Any person who, and the secretary, treasurer and every steward or member

of the committee or management of any club which, acts in contravention of or fails
to comply with any provision of this Ordinance or of any regulation made or
condition imposed thereunder for which no other penalty is provided shall be liable
on summary conviction to a fine of $1,000.

https://oelawhk.lib.hku.hk/items/show/2479

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