‘All risks must be controlled,’ John Lee says as he defends basketball betting U-turn

City leader defends halt on basketball betting, citing ‘worrying’ prediction market trend

Hong Kong’s leader has defended the government’s decision to put the legalisation of basketball betting on hold, stressing the policy was never intended to encourage gambling and that all risks must be controlled before any further steps are taken.

Chief Executive John Lee Ka-chiu made the remarks on Tuesday after the government’s surprising U-turn last week to halt the authorisation of basketball betting, citing the rapid growth of prediction markets – cryptocurrency-based platforms that allow users to trade on future events.

“I think it is the right approach, and it is also right to be cautious, because we never encourage gambling,” Lee said before a weekly meeting of the city’s top decision-making body, the Executive Council.

“It is important that [the Home and Youth Affairs Bureau] thinks thoroughly before they proceed further so as to ensure that all these risks are properly controlled.”

Lee said the rapid growth of prediction markets had exceeded expectations, with a 130 per cent surge over two years, and that the pace continued to accelerate.

He added that such platforms involve speculation and virtual assets, requiring a study of their impact on the city’s gambling landscape.

He also noted that 40 per cent of prediction market activity was tied to sports events, describing it as a “worrying trend”, and said it was appropriate for the government to regularly review the situation and mitigate potential risks.