Hong Kong suspends plans to legalise basketball betting amid concerns about prediction markets

Hong Kong authorities have unexpectedly suspended plans to legalize basketball betting, a move that was set to be implemented as early as September. The decision stems from growing concerns regarding the burgeoning prediction market sector within the gambling landscape. The Home and Youth Affairs Bureau stated that introducing legal basketball betting at this juncture could inadvertently encourage participation in these prediction markets, which have seen a dramatic surge in popularity and trading volume.

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Given these latest developments, as a responsible government, it is necessary to conduct a more in-depth study into the operations of these emerging models and platforms

The bureau highlighted that betting on sports within prediction markets is currently illegal in Hong Kong. The sheer scale of these markets, with a reported trading volume of US$64 billion in 2025—a threefold increase from the previous year—necessitates a more thorough investigation. "Given these latest developments, as a responsible government, it is necessary to conduct a more in-depth study into the operations of these emerging models and platforms," the bureau communicated in its Chinese-language statement.

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Given these latest developments, as a responsible government, it is necessary to conduct a more in-depth study into the operations of these emerging models and platforms

This suspension comes as a surprise, particularly after a bill to legalize basketball betting was passed by lawmakers in September, following the successful legalization of football betting in 2003, both regulated by the Hong Kong Jockey Club (HKJC). While the government had previously argued for regulation to combat alarming rates of illegal betting, the emergence of prediction markets has introduced a new layer of complexity. The HKJC had expressed optimism about the legalization of basketball betting, viewing it as a significant step akin to the football betting legalization, aimed at enhancing the Club's contributions to Hong Kong society. However, the current pause signals a more cautious approach to expanding the legal gambling framework.

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The trading volume of prediction markets reached US$64 billion in 2025, a threefold increase from the year before.