Hong Kong Gambling Law: Recent Developments, Regulatory Updates and Emerging Challenges in Non-Traditional Gaming

Overview

In Hong Kong, the most common types of lawful gambling are lotteries, horse racing and football betting. They are run by the Hong Kong Jockey Club (HKJC) which is the only local racing club and legal bookmaker in Hong Kong. Casino gambling in a land-based or virtual casino is not legal in Hong Kong. It is also unlawful in mainland China. Macao, another Special Administrative Region in China and a major gaming city, is just about an hour away by road or ferry.

The legal position on non-traditional luck or chance-based entertainment, such as claw machines, blind boxes, pinball machines, and online simulated gambling games (for instance, mahjong, poker and slot machines), is less certain. The main statute on gambling looks at gambling traditionally where people are expected to physically gather in the same place to gamble. However, betting with illegal bookmakers, whether through the telephone, internet or otherwise, is specifically prohibited.

Nonetheless, gaming credit legally granted in another jurisdiction for the purpose of gambling in that jurisdiction may be enforced through the Hong Kong courts. Hong Kong is thus a useful forum for the enforcement of gaming credits owed by gamers who have assets in Hong Kong.

Regulatory licence is required for specific types of amusements. Such licences include amusement game centre licence, lottery licence, mahjong/tin kau licence and tombola licence. Interestingly, in Hong Kong, even lucky draw for business promotion and marketing purposes requires a trade promotion competition licence to be lawful.

After football betting had become legalised more than two decades ago, in September 2025 the Hong Kong legislature passed a bill to legalise basketball betting under a regulatory regime modelling the football betting regime. However, due to policy considerations, the authority in April 2026 unexpectedly halted rolling out basketball betting.

Furthermore, in May 2026, the Government announced that it was reviewing the regulation of amusement games with prizes and proposed legislative amendments permitting licences to be issued directly to individual gaming machines, alongside enhanced licencing conditions.

Major gambling-related laws and regulations in Hong Kong

The main legislation governing gambling in Hong Kong is the Gambling Ordinance (Cap. 148). The general position is that gambling is unlawful unless the gambling activity falls within one of the exceptions under the statute. Gambling is defined under the statute to include ‘gaming’, ‘betting’ and ‘bookmaking’. Historically, the law is targeted towards gambling at unlicensed establishments and betting with illegal bookmakers. Private bets, gaming carried out in private premises on social occasions and certain types of games carried out in licensed premises on social and non-social occasions are not unlawful.

Gaming – A ‘game’ is widely defined to include ‘a game of chance, a game of chance and skill combined and a pretended game of chance or chance and skill combined’ and ‘gaming’ is defined to mean ‘the playing of or at any game for winnings in money or other property whether or not any person playing the game is at risk of losing any money or other property’. Under these wide definitions, activities where an element of chance is involved and the participants stand to win something of value will be a form of gambling and unlawful. To lawfully conduct the game, the organiser has to obtain a licence and fulfil the conditions of the licence in conducting the game.

Playing of traditional social games such as mahjong, tin kau tiles or cards involving winnings in money or property is ‘gaming’ and is thus prima facie unlawful. Nonetheless, it remains very common to hear sounds of mahjong tiles shuffling from private premises, as there are exceptions to the general prohibition. For example, it is lawful if the game is played on a social occasion in private premises and is not promoted or conducted by way of trade or business or for private gain otherwise than to the extent of a person’s winnings.

Betting and bookmaking – A bet (which is judicially considered to be synonymous with the term “wager”) has been described judicially as one “by which two persons professing to hold opposite views touching the issue of a future uncertain event, mutually agree that, depending upon the determination of that event, one shall win from the other, and that other shall pay or hand over to him, a sum of money or other stake”.¹Carlill v. Carbolic Smoke Ball Co [1892] ¹See section 6I(5) of Betting Duty Ordinance. QB 484, 490, per Hawkins J.[/mfn]

Betting with an unauthorized bookmaker is specifically prohibited in Hong Kong, whether or not the bet is received within or outside Hong Kong. Betting with overseas bookmakers is an offence, even if the bookmakers are legal in the jurisdiction where they operate. Unauthorised bookmaking is also unlawful. HKJC is the only lawful bookmaker in Hong Kong.

Hong Kong Jockey Club

The Government’s power to license and authorise racing club and bookmaker comes from the Betting Duty Ordinance (Cap. 108). At present, HKJC is the only lawful racing club and bookmaker in Hong Kong. The profits made by HKJC are applied by a charity trust on donations and social projects for the general welfare of the public.

Trade Promotion Competition Licence

Interestingly, even a lucky draw conducted for the purpose of boosting the sale of a certain product or service requires a licence to be legal in Hong Kong. The Gambling Ordinance permits businesses to run competitions to promote a trade or business or the sale of any product if a ‘Trade Promotion Competition Licence’ is applied for and granted by the Government. In general, licence applications are considered on their merits. Factors to consider in processing an application include public interest, promotion of a business, and any undesirable effect of inducing people to participate in gambling.

Sports betting

All types of betting on sports had been unlawful until the Government started to authorise and regulate football betting in Hong Kong in around 2003, the purpose of which is “to combat illegal football gambling”. The Government licensed HKJC as the sole bookmaker of football betting in Hong Kong. However, the Government may impose conditions on “categories of matches on which betting may be conducted”.2 At present, it is only lawful to bet on international football tournaments, but it remains unlawful to bet on overseas matches involving Hong Kong teams, and betting on any football match that takes place in Hong Kong is prohibited.²Home Affairs Bureau of Hong Kong, Paper for the Bills Committee – Betting Duty (Amendment) Bill 2003 – Licences for Football Betting and for Lotteries, June 2003, accessible at: https://www.legco.gov.hk/yr02-03/ english/bc/bc59/papers/bc590606cb2-2339-1e.pdf, paragraph 7; and Press Release of the Hong Kong Government, “Football betting licence renewed”, 17 July 2013, accessible at https://www.info.gov.hk/gia/general/ 201307/17/P201307170288.htm.

In February 2025, the Government announced that it would explore legalising basketball betting activities “to combat illegal basketball betting in Hong Kong”. In June 2025, the Betting Duty (Amendment) Bill 2025 ³See Footnote 3 above for the Legislative Council Brief. was gazetted with a view to introducing a regulatory framework with respect to basketball betting mirroring the football betting regulatory regime. Following public consultation, the Bill was passed in September 2025, under which basketball betting was legalised.

The new regime closely mirrors that for football betting. Under the Betting Duty Ordinance (Cap. 108):

(1) The Secretary for Home and Youth Affairs is granted power to issue a licence to a company to conduct betting on the results of, or contingencies relating to, basketball matches and to impose licensing conditions to minimize the negative impact of gambling on the public, including conditions relating to the categories of matches on which betting may be conducted.

(2) On the calculation and collection of betting duty, same as football betting, the betting duty is charged at 50% on the net stake receipts derived from authorized betting on basketball matches.

As of today, the Government has not issued a licence to operate basketball betting in Hong Kong.

In April 2026, the Government announced that the introduction of basketball betting would be deferred pending a more in-depth review of the impact of the rapidly emerging overseas “prediction market” platforms, particularly those associated with illegal sports betting activities. The Government said it was not an appropriate time to introduce a new betting product in Hong Kong, as there were concerns that the public would be drawn into illegal gambling.⁴Hong Kong Government News, “Basketball betting should not be continued” (in Chinese) (14 April 2026), accessible at: https://www.news.gov.hk/chi/2026/04/20260414/20260414_200932_671.html?type=category& name=health.

It is not exactly understood how legalising another type of sport betting will draw more people into illegal gambling, bearing in mind legal football betting has been around for over two decades. In any case, in light of the recent announcement of the Government, the timeline for implementing basketball betting regime remains uncertain. Nonetheless, given that HKJC has already undertaken preparatory work for basketball betting, it is anticipated that once the green light is given by the Government, the regime can be rolled out expeditiously.

Non-traditional luck-based entertainment – Potential areas of gambling law amendment

Simulated gambling games

Online games are easily accessible on smartphones for leisure purposes. Simulated gambling games such as online mahjong, poker and slot machines have been increasingly popular. Some may prompt players to make ‘in-game purchases’ of virtual coins and tools to be paid by cash. This calls for concerns on whether simulated luck-based entertainment is a form of ‘gambling’.

A game played on an online gambling platform or virtual casino which offers the players a chance to win money or other property falls within the definition of a ‘game’. Section 6 of the Gambling Ordinance makes it an offence for someone to gamble in a gambling establishment, whereas section 13 of the Gambling Ordinance makes it an offence for someone to gamble in a place that is not a gambling establishment, but this only applies when the place of gambling is the place where the other person operates or manages or otherwise controls the unlawful gambling. In other words, the gambler and dealer are expected to be in the same place. In the case of online gambling, the operator’s location is normally in a jurisdiction where such operations are legal and often differs from the players’ locations, so the above two statutory provisions arguably do not apply to a person gambling on an online medium. Nevertheless, there still remains a risk that an online gambler may be prosecuted under the catch-all provision in respect of ‘unlawful gambling’ under section 3(1) of the Gambling Ordinance.

In January 2024, the Consumer Council, a statutory body in Hong Kong, called for more stringent regulation of simulated gambling games, quoting online slot machines, poker and mahjong games as examples, and advocated for the introduction of specific laws that target simulated gambling games.⁵Consumer Council, “Simulated Gambling Games Full of Tactics to Lure In-Game Purchases Tougher Regulation Urged to Steer Players Away from Addiction” (15 January 2024), accessible at: https://www.consumer.org. hk/en/press-release/p-567-simulated-gambling-apps. The Council found the existing gambling legislation to be “not fully effective in targeting a wide range of online gaming behaviours and businesses of a similar nature to gambling”. In particular, the Council pointed out that the legislation does not “explicitly prohibit minors from participating in gambling” and especially online simulated gambling games and urged the Government to review existing legislation.

The Betting Duty (Amendment) Bill 2025 was intended, in part, to address the widespread illegal online gambling operations fuelled by technological advancements and reduced operational barriers. However, the Bill did not propose any measures specifically targeting online simulated gambling games. As at the date of this article, the Gambling Ordinance has not been amended.

Claw machines & pinball machines

In recent years, claw machines⁶Claw machines are cabinets with glass boxes filled with items (usually stuffed toys or snacks) and have a joystick-controlled claw at the top, and a player inserts coins to activate the machine and positions the claw before dropping it into the pile of items in an attempt to pick up the item(s) and unload it (or them) into a pick-up outlet. These machines are often operated in public places. and pinball machines have become ubiquitous in Hong Kong.

Interestingly, despite that claw machines seem to be a form of entertainment, the operation of such business does not require a public entertainment licence under Hong Kong law. The Gambling Ordinance regulates the organisation and conduct of ‘a game of amusement with prizes on places of public entertainment’ (as defined in the Places of Public Entertainment Ordinance) (for example, family amusement centres) and they are only lawful if ‘Places of Public Entertainment Licence’ is obtained for the place where they are played. Such licence is, however, not required for claw machines as a Hong Kong Court case in 2022 confirmed that claw machines do not meet the definition of ‘entertainment’ under the Places of Public Entertainment Ordinance⁷Secretary for Justice v. Claw Boss Limited [2022] HKCFI 2261  and accordingly claw machines are not subject to the ‘Places of Public Entertainment Licence’ requirement.

This does not mean that the operation of claw machines is necessarily lawful. Claw machines may be argued to be purely machines of games of ‘skill’ and may not be regarded as ‘gaming’. However, it is also arguable that they are ‘games of chance and skill combined’ and players pay to play in return for the potential rewards. The Government has proactively monitored individuals suspected of using claw machines for gambling activities. In November 2024, the Police mounted an operation to crack down suspected gambling establishment operating claw machines for winnings in money and the machines concerned are said to be ‘gambling game machines in disguise’.⁸Press Release of the Hong Kong Government, “LCQ14: Regulating claw machine venues” (12 February 2025), accessible at: https://www.info.gov.hk/gia/general/202502/12/P2025021200219.htm. Responsible persons of the establishment, its staff and the suspected gamblers were arrested for offences under the Gambling Ordinance. To date, there has not been any conviction reported.

In October 2025, the Government conducted a comparative review on the regulatory approach adopted in other jurisdictions to claw machine venues.⁹Home Affairs Department Research publications, “Regulation of claw machine venues in Taiwan” (3 October 2025), accessible at: https://www.legco.gov.hk/research-publications/english/essentials-2025ise09-regulation- of-claw-machine-venues-in-taiwan.htm. In Chinese Mainland, operators of claw machines must clearly display the probability range in awarding prizes on the machines. In Singapore, only prizes from a prescribed whitelist (such as toys and key chains) can be offered, while other items will be subject to the authority’s approval. This publication may be considered as a step forward on Hong Kong’s calling for regulatory review over the operation of claw machines.

On the other hand, pinball machines involving the offering of prizes are considered machines of a “game of amusement with prizes” and a licence is required for their operation.

In May 2026, the Government announced that it was reviewing the regulation of the amusements with prize licence, targeted at scrutinising devices used to conduct prize-awarding entertainment.¹⁰Press Release of the Hong Kong Government, “LCQ19: Regulating claw machine venues and pinball machine shops” (29 April 2026), accessible at: https://www.info.gov.hk/gia/general/202604/29/P2026042900438.htm. It proposed to amend the Gambling Ordinance and the Gambling Regulations such that the licencing authority may issue the relevant licence directly to the operators of individual gaming machines and impose licensing conditions, such as a requirement to display clear and prominent anti‑addiction warnings notices at their premises.¹¹Legislative Council Paper No. CB(3)397/2026(03), “Regulation of Amusement with Prizes Licences and ‘Internet Cafés’” (in Chinese) (11 May 2026), accessible at: https://www.legco.gov.hk/yr2026/chinese/panels/ha/ papers/ha20260511cb3-397-3-c.pdf

Blind boxes

The sale of products in the form of blind boxes has become increasingly prevalent. Their appeal lies in the thrill and chance-taking mentality from the uncertainty rather than the items themselves.

Whether the sale of blind boxes contravenes gaming law has not been judicially tested in Hong Kong. Nonetheless, the Government maintains that various laws are in place to protect consumer rights. For instance, the Trade Descriptions Ordinance (Cap. 362) prohibits unfair trade practices such as misleading omissions and false descriptions.¹²Press Release of the Hong Kong Government, “LCQ7: Sales model of ‘blind boxes’” (8 October 2025), accessible at: https://www.info.gov.hk/gia/general/202510/08/P2025100800551.htm. However, there has been no proposal for a comprehensive legal review to regulate the blind boxes business from a gaming law perspective.

Outlook

The legal framework and jurisprudence in Hong Kong as regards gambling and enforcement of overseas gaming credit have been quite settled. However, recent developments suggest a discernible shift in regulatory approach in response to the increasing prevalence of non‑traditional chance‑based entertainment. In particular, the Government has proposed legislative amendments to strengthen the regulation of claw and prize‑offering pinball machines. Coupled with the recent legalisation of basketball betting, and pending further announcement from the Government with respect to “prediction markets”, further evolution of Hong Kong’s gaming law regime is anticipated.