Hong Kong officials: "Prediction market" sports betting constitutes illegal gambling and new betting projects should be halted.

Mars Finance News: On April 17, according to Radio Television Hong Kong, the Hong Kong government has decided to stop advancing a basketball betting project. The Secretary for Home and Youth Affairs, Mak Mei-zuen, said in an interview with the station that, based on information collected by the authorities, the “prediction market” has developed rapidly in recent years. Monthly trading volume has risen from less than US$100 million in the previous year to more than US$13 billion last year, with nearly 40% of the transactions related to sports. The authorities are concerned that if new gambling projects are promoted at this time, it will lead residents to become more concerned about, and even participate in, illegal gambling through the “prediction market.” Therefore, they believe that research should be conducted first before deciding on the next steps, and that promotion of new gambling projects should be halted for now.

Mak Mei-zuen said that, for the currently regulated gambling projects, since a relatively mature monitoring and management system has been established, risks can be controlled. However, regarding the uncertainty of the “prediction market,” as a responsible government, there is a need to conduct research first to understand the impact of the “prediction market” and how rampant it is in Hong Kong. She also said that the government and the Hong Kong Jockey Club have long had close ties, because the Club has a rigorous monitoring system to oversee illegal gambling activities, and it also has experts specifically dedicated to combating illegal gambling. The government will cooperate with the Club, relying on their professional advice, so that the authorities can introduce measures specifically targeting illegal gambling.

Mak Mei-zuen also reiterated that the government’s consistent policy is not to encourage gambling. Betting on sports-related events through the “prediction market” is illegal gambling. The authorities will strengthen publicity and education to help residents understand the harms of gambling and not take part in illegal gambling.