Hong Kong Halts Launch of Legal Basketball Betting

(AsiaGameHub) –   Hong Kong has halted the planned September start of its legal basketball betting operation. Authorities stated that the rapid expansion of cryptocurrency-based prediction markets necessitates a more thorough examination before any licensing can proceed.

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Good to Know

• Hong Kong has suspended the planned September launch of legal basketball betting.
• Officials pointed to growing uncertainty around crypto based prediction markets.
• No new date has been given for a rollout.

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Crypto Prediction Markets Change the Picture

Hong Kong had passed legislative amendments last September to authorize basketball betting, aiming to draw activity away from the black market. Officials had connected that initiative to an illicit sector that produced an estimated HK$34 billion (US$4.3 billion) in 2023. The government has now reversed its position.

Alice Mak, Hong Kong’s Secretary for Home and Youth Affairs, explained that the law’s passage did not obligate the government to grant licenses according to a fixed timetable.

“As a responsible government, we must make decisive decisions when protecting the public interest,” Mak said. “If we were to blindly issue a licence simply because a bill was passed last year while disregarding other external factors, that would be irresponsible.”

Officials now seek additional time to evaluate prediction markets, platforms where users speculate on outcomes related to sports, financial indices, and even geopolitical events. The rise of platforms like Kalshi and Polymarket has led regulators in various jurisdictions to debate a key question: are event contracts genuinely financial instruments, or merely a form of gambling under a different label?

In a Tuesday email, the government reported that prediction market trading volume surged in 2025, reaching a peak of US$64 billion, a 200% increase from the previous year. Officials stated that such significant growth demands a more in-depth analysis of the operational models of these platforms.

The Hong Kong Jockey Club, which was anticipated to operate the betting scheme, was reportedly informed of the suspension on Monday evening, although senior management had prior knowledge, according to the South China Morning Post. The newspaper cited a “club insider” who questioned, “The prediction market has emerged for some time. Why wasn’t it foreseen earlier? … Was the decision based upon something beyond [the government’s] control?”

This query has fueled broader discussion in local media. Some analysts have speculated that Hong Kong wished to avoid conflict with Beijing, which maintains strict control over gambling policies and has associated cross-border gambling with money laundering and other criminal activities. While Hong Kong, as a special administrative region of China, has autonomy in local policy, influence from the central government remains a significant factor.

Adrian Pedro Ho, a member of the Legislative Council, supported the postponement, describing it as a prudent move given the continuous evolution of gambling-related technology.

“Basketball betting has not launched yet,” he said. “There is no reason to introduce something new that could encourage and fuel illegal gambling activities.”

No schedule has been provided for when legal basketball betting might commence.