I think I’ll devote this post to lavishing praise on a fine story released by Xinhua yesterday. Admittedly, it was of particular interest to your blogging slave given my flirtation with horse racing journalism before coming to China.
BEIJING, Jan. 10 (Xinhua) — The Chinese mainland could see its first official bet placed on a horse race since the Communist Party came to power in 1949 as early as next year.
The central government has approved the establishment of regular horse racing in Wuhan, capital of central China’s Hubei Province, and is mulling over the introduction of gambling on the races in 2009.
The races would be held at the Orient Lucky City racecourse in Wuhan in September this year, according to a senior manager with the Orient Lucky Horse Group Cooperation, who did not want to be named.
The announcement is being seen as the beginning of gambling on horse racing on the Chinese mainland.
This story had to be approved by the people upstairs before its release although the big potatoes, as the chieftans are often called in the Xinhua newsroom, only saw the unedited version. When I received the story, it had been peppered with the phrase “horse racing lotteries”, seemingly to play down the implications of legalizing organized gambling on horse racing, which was outlawed in 1949. The writer was concerned about my insertion of the word “gambling” because of its negative connotations - officially the Communist Party still regards the practice as more depraved than the debauched hugging craze that threatened to suck all the morals out of Shanghai in 2006. Thankfully, it remained and I was surprised the headline, “China hints at legalization of gambling on horse racing” (which is perfectly true of course) was allowed to stay. Other releasers, the kind that spontaneously combust when they see the words ”censor” or “protest” regardless of context, would have butchered the story.
Wuhan’s Changjiang Times (I suppose the English name is actually Yangtze Times) reported that betting would accompany the beginning of racing in September. I’m not sure if the newspaper was wrong or the manager of the Orient Lucky Horse Group was being more cautious when speaking to Xinhua but it seems punt-hungry Chinese will have to wait until 2009.
The Changjiang Times newspaper in Wuhan reported that betting will be launched alongside horse racing in September.
However, the manager told Xinhua betting on the races would probably not be introduced on a trial basis until 2009.
“Initially about 250 horses from different jockey clubs around the country will participate in the races,” said the manager, “but betting can only be officially launched when the races draw at least 2,000 horses.”
“The proposal of betting on horse racing is being reviewed and discussed but there is no concrete information on when or whether it will begin,” a spokeswoman with the China Sports Lottery Administration Center (CSLC) surnamed Fang told Xinhua by telephone.
I was wondering how long it would take before the government could no longer justify placing morality above money. From super casinos in Macau to cockfights in Yunnan to a dice game inolving cumbersome wooden blocks, a different animal painted on each side, in farmers’ markets in Guizhou, the Chinese love a good gamble. Just ask those excitable grannies in the branch of China Minzu Securities opposite Xinhua’s west gate that bet on cards when the stock exchange is on its lunch break. The money being wafted under the government’s collective nose is huge, plus the theory that illegal gambling will be a thing of the past:
Qin Zunwen, an expert in the study of horse racing betting, said the business, once fully operational nationwide, could create three million jobs a year.
He told the Changjiang Times that annual lottery sales could reach a staggering 100 billion yuan (13.7 billion U.S. dollars), yielding 40 billion yuan in tax revenues,
“Offering a legal venue to bet on horse races could drive out illegal online gambling,” he added.
This article on Bloodhorse.com makes an important point:
It has been estimated that about 600 billion yuan (US$82.5 million) leaves the mainland each year for gambling in offshore casinos and racecourses.
The article goes on to provide reaction from the Hong Kong Jockey Club:
The Hong Kong Jockey Club was cautiously optimistic over the move last night, with chief executive Winfried Engelbrecht-Bresges describing it as “a positive development, if the report proves to be correct.”
He did say, however, that HKJC had given the Wuhan Jockey Club the rights to duplicate the HKJC’s book of rules to give the new racing industry a proper legal and policy framework. Engelbrecht-Bresges also said the Jockey Club would consider helping the WJC and the central government set up racing, if it were asked, provided the club was convinced there was a commitment to creating something of real quality and value.
Engelbrecht-Bresges said the Hong Kong Jockey Club had an internationally recognized brand name that had to be protected, and that any potential association with racing on the mainland would have to be on the basis that the project would be of “the highest standard.”
Interest among the public in Wuhan is already there:
A survey conducted by the Hubei Academy of Social Sciences revealed that 83.3 percent of the Wuhan residents believed the introduction of betting would have a positive social impact, and 51 percent of the respondents said they were “interested” or “very interested” in gambling on the races.
This news will no doubt come of great interest to Hong Kong businessman Chung Yun Pun, who funded the establishment of a racecourse in the suburbs of Beijing in 2002 at a cost of $100m, only for it to close down late in 2005. The government had shown no sign of lifting the ban on gambling and without bettting revenues, the racecourse could not survive. The Guardian reported that around 600 horses were culled. I have heard that a breeding program has continued quietly at the Beijing track so if the Wuhan trial is a success, horse racing in Beijing could be up and running again in a couple of years or so.
Danwei | 11-Jan-08 at 8:19 pm | Permalink
Danwei Picks: 2008-01-11…
Danwei Picks is a daily digest of the “From the Web” links found on the Danwei homepage. A feed for the…
Extremely concerned | 11-Jan-08 at 9:49 pm | Permalink
Anyone remember this last September (NY Times):
“China’s casino billionaire Stanley Ho also shut out rival bidders from a Sotheby’s auction for a rare Qing Dynasty bronze horse that had been looted in 1860 by French and British troops from a Chinese palace.
Ho paid $8.9 million, one-third more than its estimate, setting a record for Qing sculpture. Ho will donate it to China’s government.”
A thank you present or bribe?
Extremely concerned | 11-Jan-08 at 9:49 pm | Permalink
Apologies, NY Post.
Lazy Aussie | 12-Jan-08 at 7:06 am | Permalink
I’ll be in Wuhan in a few weeks. I’ll let you know if the town is agog.
Dave | 12-Jan-08 at 6:03 pm | Permalink
Will Beijing Newspeak be holding a competition where the winner gets an all expenses paid trip to Orient Lucky City Racecourse’s first day of legal gambling, with on-hand tipping advice from Stansted’s favourite son?
Not only would that increase your readership but also attract attention to the pairing of two of your great loves, China and the GeeGees
Dave | 12-Jan-08 at 6:05 pm | Permalink
Oh, and how will the gambling work? Will it be just a Tote-style system run by the state, or will there be openings for budding bookies? Will they be opening the doors to Victor Chandler, Ladbrokes and the like?
Chris O'Brien | 13-Jan-08 at 8:02 pm | Permalink
Extremely Concerned (feels ridiculous writing that when who you are): I was mulling over that conspiracy theory following the auction. All we need is a tenuous link between Orient Lucky Horse Group and Stanley and we’re away.
Lazy Aussie: I think I might be in Wuhan in about a month - will email in the next couple of days.
Ah David (background: Dave is the only person I know who is able to equal my enthusiasm for a four-day jolly at the Cheltenham Horse Racing Festival in March where Guinness-dribbling, unintelligible Irishmen become Gods among men and Abba tribute bands are strangely tolerable), I knew you would enjoy this one! I suppose I could set up an outrageously expensive 0898 number to receive all your 100 entries submitted under different guises.
The betting system would most certainly be on-course only - and yep, Tote-style pool betting. The Chinese press was referring to “intelligence competitions” in which a punter has to choose which horse is going to win. So gambling then. Wonder if they will try and limit stakes - I suppose that would only serve to increase possibilities for illegal bookies. Obviously, this is just a trial at one racecourse but I have heard that some British bookies have been in contact with the Chinese government for some time on the legalization of gambling issue.
Micah Sittig | 14-Jan-08 at 11:58 am | Permalink
Is that what they’re calling them these days?
David D | 14-Jan-08 at 2:46 pm | Permalink
Hi Chris,
I’m glad to see your sexed-up story is still there. I heard the Chinese version was pulled from the Xinhua and Changjiang Times websites.
My uncle made his fortune through horse race betting, or rather his software to predict winners.
Check it out:
http://findarticles.com/p/articles/mi_qn4158/is_19970917/ai_n14133436
Chris O'Brien | 15-Jan-08 at 11:33 am | Permalink
David, that’s a very interesting development, thank you. And I reckon your uncle could be on to another winner with a Chinese language version. He’ll just have to wait another couple of decades or more for some decent stats!
Lazy Aussie | 19-Jan-08 at 2:17 pm | Permalink
I think I’ll be in Wuhan on the 17th or 18th of March now, but visiting universities rather than the races. I’ll quiz some taxi drivers, although unlike Beijingren, 九头鸟 never seem to understand my mandarin. One thing I was going to ask you. We were both fairly confident that Beijing would solve its air quality problems at least for the few weeks of the Olympics. Are you still confident?
Chris O'Brien | 24-Jan-08 at 4:21 pm | Permalink
That would be much appreciated Lazy Aussie. I plan to nose around mid-Feb. Back to the air quality issue - well I suppose it’s only guesswork but yes, I still think everything will be fine - despite the recent revelation of phoney calculations. (here’s link if anyone missed it: http://time-blog.com/china_blog/2008/01/one_worldone_dreamone_gas_mask_2.html).
After all, they only have to match the air quality of Athens four years ago which wasn’t exactly perfect but received few complaints.
BERNARD ANG | 03-Mar-08 at 9:41 am | Permalink
I have been in the horse racing industry in Singapore/Malaysian region for 35 years.
I was the founder member and President of the Association of Racehorse Trainers Singapore (ARTS) for nine consecutive years. Re-elected as President un-opposed for four terms.
From my experience, the most important factor is transparency. Rules must be clear. Justice must be seen to be carried out without fear or favour. There must be integrity at all levels - from the top officials to the employees.
Lastly, the punters (or gamblers) must be educated. Unlike games on cards, there is this element of thrill or so-called personal satisfaction in picking the winning horse in a race through what we call the application of the personal touch.
This is an art. It can be taught and trained through education by way of seminars and talks.
I will be much obliged to assist in this field if the relevant authority is interested to pursue.
Many thanks
Kevin Cain | 15-May-08 at 4:10 pm | Permalink
I find this article about gambling on horse racing very interesting as a good freind of mine is the race course manager for Mr Chung in Beijing and i have been waiting for some positive news in this regard.I was the manager for the internet horse raceing gambling website for the listed English company Sportingbet PLC in Australia. And have since moved on to manage the call centres in the Asia Pacific region for one of the bigger Australian Bookmakers and have wide expieriance in Tote and Internet gambling and the racing industry in general. I can only agree with Bernard Angs comments on the need for a stick policy of trancparency and integrity at every level.To appreciate the people of Chinas love for gambling one only has to look at the gambling dollars leaving the mainland at present of (under estermated)US$80 Milloion.There is no doubt that that figure would pale into insignificance when race horse gambling begins in China.That sought of money always attracts corruption of one sought or another from my expieriance and the orthorities must put together very tight regulatory policies and to copy the rules etc directly from the Hong Kong Jockey Club simply wont work just as a government run tote based product for potential punters wouldn,t,as illegal betting in Hong Kong where it is all tote based has been on the increase for years. The Chinese central Government has a huge oppertunity to collect revenew from this venture and it is imperitive that it is done correctly in the first place.Firstly it would be wise to incorporate some rules and regulations from other world racing duristriction into there framework in both the racing and gambling aspects and open it up to competition and tax it accordingly.I wish them the best of luck and am sure that it WILL BE a huge success.