HONG KONG, Nov 26: Hong Kong will legalise soccer gambling in a bid to put illegal operators out of business and bring in billions of dollars in new tax revenue to help cover a serious budget deficit, the government said Tuesday.

The operating licence will go to Hong Kong’s Jockey Club, which controls horse-racing and Mark Six lotteries — until now the only two legal forms of gambling in Hong Kong.

“Illegal soccer gambling is invariably associated with other illegal activities, such as loan sharking,” Home Affairs Secretary Patrick Ho said.

“It is also one of the major sources of funding for organised and serious criminal activities,” he told a news conference.

“Authorisation of soccer betting...could alleviate the illegal soccer gambling problem and the police resources required to counter such activities.”

Ho said he hoped legalised football betting would start by the middle of 2003.

The plan must still be approved by the legislature, a chamber which is dominated by pro-China figures who are not expected to raise any serious objections.

Hong Kong will join Macau, Singapore and mainland China as the few places in Asia where some form of football betting is allowed. Other Asian governments eager for fresh revenue are likely to monitor the scheme.

Most of the football bets placed in Hong Kong involve putting money on top British or European matches, which are often shown live on local cable television.—Reuters