Mr Vincent W. C. Law
Partner

Vincent Law is a partner of JSM. He regularly advises global corporate clients, including gaming entities (from Macau, Singapore and the US), financial institutions, racing clubs, listed entities and their officers, and other private clients. Vincent has extensive experience in commercial litigation matters, especially regarding regulatory investigations and major commercial disputes such as:

-Gaming-related litigation (for gaming entities)

-Investigations by regulatory bodies, including competition related investigations (for listed companies, directors, financial institutions, and professional firms)

-Internal investigations relating to suspected bribery, money laundering, competition and other regulatory issues (for major corporations)

-Major shareholders and family disputes

-Insolvency litigation (for liquidators and trustees-in-bankruptcy)

-Disciplinary proceedings and internal regulatory matters

-Arbitrations

Vincent speaks English, Cantonese and Mandarin.

Ms Ka Wai Leung
Associate

Ka Wai Leung is an associate in the Litigation and Dispute Resolution practice in JSM. She has experience in:

-Gaming-related litigation (for gaming entities)

-Commercial, banking and finance litigation

-Real estate litigation and tenancy disputes

-Insolvency litigation

-Disciplinary proceedings and internal regulatory matters

-UNCITRAL arbitration on a bilateral investment treaty dispute and HKIAC arbitration.

Clients that she assists include banks, multinational corporations, property developers, landlords and global gaming corporates (from Macau, Singapore and the US).

Ka Wai speaks English, Cantonese and Mandarin.

NAVIGATING THE LEGAL LANDSCAPE OF GAMBLING IN HONG KONG: REGULATIONS, EXCEPTIONS AND EMERGING TRENDS

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. 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-based entertainment, such as claw machines and online mobile games (for instance, mahjong, poker and slot machines), is less certain. The main statute on gambling looks at gambling traditionally where people have to be physically present 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 as 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.

A recent significant development is that after legalising football betting more than two decades ago, the Hong Kong Government announced in 2025 that it will explore legalising basketball betting. Whether it will in any way be different from the football betting regime is to be seen.

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 will be 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 – Betting with a 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. As stated above, HKJC is the only lawful bookmaker in Hong Kong.

Where betting is made between persons where none of them is a bookmaker, it is not prohibited by statute and is lawful as long as the bet does not fall within the definition of ‘wagering contract’. The term is not defined in statute and 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 [1982] 2 QB 484, 490, per Hawkins J.

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 allows 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. Considerations for licence applications include public interest, promotion of a business and 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 operator of football betting in Hong Kong. However, the Government may impose conditions on “categories of matches on which betting may be conducted”.²See section 6I(5) of Betting Duty Ordinance. 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. ³Home 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.

On 26 February 2025, the Government announced that it will explore legalising basketball betting activities “to combat illegal basketball betting in Hong Kong”.⁴The Financial Secretary, “The 2025-26 Budget Speech”, 26 February 2025, accessible at: https://www.budget.gov.hk/2025/eng/budget42.html, paragraph 209. On 2 April 2025, the Government commenced public consultation on the proposed new legislation and proposed to establish a regulatory regime for basketball betting by modelling the existing regime for football betting.⁵Press Release of the Hong Kong Government, “Government launches consultation on proposed regulation of basketball betting activities”, 2 April 2025, accessible at: https://www.info.gov.hk/gia/general/202504/02/ P2025040200282.htm. For instance, it is proposed that the licensed operator shall not accept bets on basketball matches involving Hong Kong teams and/or matches that takes place in Hong Kong. As of the date of this article, public consultation is still underway. If the new law is passed, it is expected that the new regime will largely mirror that for football betting and HKJC will remain to be the sole operator of basketball betting locally.⁶Press Release of the Hong Kong Government, “Government launches consultation on proposed regulation of basketball betting activities”, 2 April 2025, accessible at: https://www.info.gov.hk/gia/general/202504/02/ P2025040200282.htm.

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

Simulated gambling games

Online games are easily accessible on smartphones for leisure purposes, and simulated gambling games such as online mahjong, poker and slot machines have been increasingly popular. While some business models may not involve cash but generate revenue through advertisements, 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 law is arguably not applicable 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.⁷Consumer 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.

As at the date of this article, the Gambling Ordinance has not been amended and no proposal for comprehensive review of the legislation in respect of simulated gambling games has been put forward.

Claw machines

In recent years, claw machines⁸Claw 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. have almost 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. 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 Ordinance⁹Secretary for Justice v. Claw Boss Limited [2022] HKCFI 2261 3. Home 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. 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 can be said to be purely 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 in return for the rewards.

Recently, 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’.¹⁰Press 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 being suspected to have committed offences under the Gambling Ordinance. To date, these cases remain under investigation by the Hong Kong police.

The Consumer Council has also urged people to be aware of indications where a claw machine may be used for gambling purposes, in particular, whether the total amount spent is worth the value of the desired prize.¹¹Consumer Council, “Disorderly Claw Machine Market Undermines Consumer Rights Industry Urged to Uphold Business Conduct and Ensure Fair Gameplay” (16 December 2024), accessible at: https://www. consumer.org.hk/en/press-release/p-578-claw-machine-complaints.

Given the rapid rise of the claw machine business locally, it is expected that the claw machine industry will continue to be under close watch of enforcement authorities.

Outlook

The legal framework and jurisprudence in Hong Kong as regards gambling and enforcement of overseas gaming credit have been quite settled. Whilst there have been calls for tightening of consumer protection in relation to non-traditional luck-based entertainment, no law amendment proposal has been made. The regime for basketball betting, if legalised, is also expected to mirror that for football betting. That aside, the law is not expected to change in any material way in the foreseeable future, and HKJC is expected to remain as the only racing club and betting operator in Hong Kong in the years to come.