Horse Racing

The 2008/09 racing season ended on a high note at Sha Tin on Wednesday as more than 63,000 racing fans flocked to the racecourses for the season finale, while a number of top horses and horsemen were honoured in the Champion Awards Presentation for their outstanding achievements in the season.

Total betting turnover for the 78 race meetings this season amounted to HK$66.82 billion, representing a decrease of HK$865 million compared with last term. The estimated racing betting duty due to the Government also slipped by two percent to HK$8.119 billion. Total attendance, however, has remained stable at 1,927,000 this season.

The Hong Kong Jockey Club's Chief Executive Officer Winfried Engelbrecht-Bresges said he was pleased with the season's turnover figure in the light of the economic downturn. But he appealed to the Government to consider giving the Club more flexibility, so as to assist it in keeping its competitiveness against offshore and illegal operators.

"I wish the Government and the community would agree that the Club has the mandate to provide horse racing and betting entertainment for Hong Kong people, and this is, afterall, beyond making surplus," he said. By channeling gaming demand and betting revenue into tax contribution, the Club enables Hong Kong people to enjoy a low level of income tax rate. "However, this can only be done if our operating framework becomes more flexible in relation to racedays and simulcast overseas races."

"The current tax rate of at least 72.5 percent on gross margin is five times higher than in Britain. Having such a high betting tax rate has made our task very difficult in the light of maintaining competitiveness, thereby weakening our ability to vie with illegal bookmakers and operators," Mr Engelbrecht-Bresges stressed.

As the racecourses are one of the tourist attractions and favourite destinations, the Club sees it important to provide world-class entertainment and racecourse facilities for visitors and local race goers. To maintain its status as one of the world leaders in the sport of horse racing and entertainment, the Club believes that it is crucial to enhance its standard of racing, the racecourse facilities and customer services. However, these critical business investments would not be made possible without a sustainable income.

While racing turnover dropped by one per cent in the current season, Mr Engelbrecht-Bresges warned that further falls in racing turnover could still be around the corner, as cutbacks in consumer spending often followed some months behind an economic downturn.

He also stressed that the fall in horse race betting turnover and its operational surplus was not a one-off issue that would have no effect on the Club's long-term viability, as some might suggest. "Horse racing is a way of life in Hong Kong, and a business for Hong Kong as a whole. The sustainability of horse racing business is not only vital for the Club but also for a wider interest of the community,"

"We see our mandates meaningful and exciting to make significant contribution to employment and to our charities and community beneficiaries not only for a short term, but also in the medium and long run," he emphasised.

Mr Engelbrecht-Bresges hoped the Club's proposal for adding five racedays and 20 overseas simulcast days could soon be approved by the Government and legislature. "These extra racedays and simulcasts will not only bring extra tax revenues to the public coffers, but can also create thousands of new jobs as well as protecting existing jobs and benefit more needy people through the Club's charitable projects," he said.

"But while we are determined to sustain our racing business and secure its growth and future development, we will remain very mindful of not encouraging more gambling in the community."

In the Champion Awards presentation today, veteran stayer Viva Pataca finally secured the coveted Horse of the Year title in his fourth consecutive year as a leading contender. He was also named Champion Middle-Distance and Champion Stayer after his spectacular victories in the Citi Hong Kong Gold Cup and Citi Champions & Chater Cup, and his runner-up finish in the Audemars Piguet Queen Elizabeth II Cup.

Prolific miler Good Ba Ba retained his Champion Miler title with his outstanding successes in the Cathay Pacific Hong Kong Mile and Citi Stewards' Cup.

Hong Kong runners performed well on the international front with Ricky Yiu-trained Sacred Kingdom conquering the KrisFlyer International Sprint in Singapore in May. This international success earned him the Champion Sprinter title as well as the local racing fans' vote as Most Popular Horse of the Year.

South African rider Douglas Whyte was crowned Champion Jockey for the ninth time, while he also won racing fans' vote as Most Popular Jockey of the Year.

Apart from enjoying the afternoon's 11 exciting races, Sha Tin racegoers received the free gift of a Most Popular Horse 2008/09 Season figurine set on entering the racecourse. They were also treated to a variety of special on-course programmes like a racing silks parade and a post-race show, at which popular local singers George Lam and Vincy bade farewell to another successful season.

The 2009/10 racing season will commence on 13 September with a variety of special programmes being planned to mark the Club's 125th anniversary. "I look forward for a meaningful and prosperous season next term," Mr Engelbrecht-Bresges said.