Hong Kong is amongst the jurisdictions with the strictest gambling rules in the world. The city only allows a few forms of gambling, including football betting, Mark Six Lottery, Mahjong and Tin Kau. But despite its relatively strict laws and the fact that the Hong Kong Jockey Club (HKJC) holds a gambling monopoly, illegal betting remains pervasive.
A big reason for this growth is the increasing popularity of online platforms. These platforms have made it possible to access entertainment from anywhere, as long as you have a good internet connection. You no longer need to plan for a trip to Las Vegas or Macau to engage in your favourite slot or table game. And as many residents turn to online gambling, the city might be pressured to rethink its stance.
Perhaps that could result in a widespread adoption of legal online casinos in Hong Kong, where players can enjoy a safe environment with fair odds and secure payments. But how does Hong Kong’s illegal gambling market look at the moment? What are its actual size and the key trends driving growth?
Just how big is this underground market?
Since this city maintains a tough stance toward most gambling forms, players have been turning to offshore sites to quench their need for high-stakes action and variety. And this has been happening for some time now. In 2017, Andrew Tessler and other researchers published a report on SpringerOpen estimating yearly revenues from the city’s illegal betting market at HK$12 billion. Around the same time, the HKJC reported HK$36 billion in legal betting revenue.
That means roughly one-quarter of all gambling-related money in the city was spent in the unregulated market. Now that’s no joke, especially now that such revenue can really help Hong Kong meet its developmental needs. Take, for instance, a region like Macau, where gambling has been a lifeblood of the economy for some time now. Do you know that in 2019, the betting industry contributed a remarkable 65.8% of the region’s GDP? And mark you: Macau’s per capita GDP ranked seventh worldwide that year, surpassing wealthy nations like Switzerland.
So, if properly regulated, this industry can actually be a blessing to Hong Kong. But unfortunately, it seems there’s still a lot more to be done. According to the South China Morning Post, the HKJC attributed nearly 10% loss in local horse-racing betting turnover to illegal gambling and outbound betting by the city’s residents. Elsewhere, the regulator estimated that illegal basketball betting alone reached between HK$70 billion and HK$90 billion in 2024.
How do offshore sites appeal to Hong Kongers
Aligning with the growing need for mobile-friendly experiences
It won’t be shocking to know that you’re using your mobile device to access this content. Well, that’s the new standard amongst many internet users. According to Exploding Topics, almost all (96.3%) of the world’s digital population uses a smartphone as the primary tool to go online. Of course, you don’t expect Hong Kongers to behave differently. And if these users view your platform as mobile-unfriendly, many of them may never transact with you again.
And they will not just leave quietly; some could tell their friends about their frustrations, eventually steering even more players away from your platform. As WiserNotify notes, disappointed customers will speak to at least nine other people about their bad experiences. To avoid incurring such losses, offshore websites have invested in mobile-first web approaches like responsive design.
With responsive design, these illegal operators ensure every page and game element instantly adapts to any screen size, giving players a smooth experience, even on small-screen devices. And when players find such experiences, they are far more likely to become loyal. Responsive platforms can also help improve a platform’s marketing efforts. According to WPDean, these designs drive 11% higher conversion rates than traditional layouts, while non-responsive ones lose up to 73% of users within seconds.
Paying attention to the payment experience
Besides catering to the growing need for mobile-friendly experiences, offshore operators also prioritise excellent payment experiences. These platforms are aware that modern gamblers are intolerant of slow and problematic transactions, so they work hard to ensure the process is as seamless as possible. At least players won’t have to wait ages before they receive their funds or before the funds reflect in their accounts.
And while this might sound so simple, it can either make or break a platform. According to Wavetec, over seven in ten customers will abandon a purchase if the checkout process takes longer than five minutes. Delaying the payment process not only frustrates users but also shows your lack of adaptability to modern trends, which may negatively affect your competitiveness.
As such, operators targeting this region have been incorporating digital wallets like PayPal to cater to the growing need for instant transactions. Others even go an extra mile to implement digital currencies, which are way faster.
At this point, you can clearly see why illegal platforms dominate Hong Kong’s gambling market. These companies do not just focus on the city’s gamblers with the aim of meeting their need for diversity and high-stakes action. They are also masters at providing seamless experiences that match the needs of the modern gambler.
