The Hong Kong Jockey Club, which controls all legalized betting in Hong Kong, said on Friday that revenue has surged in two of its three core businesses in the 2007/08 season, which ended in July.
The company said horse race betting revenue rose 5.8 percent over the previous season to nearly 67.7 billion Hong Kong dollars, or $8.68 billion.
Revenue from football betting increased more than 14 percent to 34.5 billion Hong Kong dollars, or $4.4 billion.
However, turnover from its Mark Six lottery operation dropped 3 percent to 6.4 billion Hong Kong dollars, or $819 million.
Winfried Engelbrecht-Bresges, chief executive of the club, said in a prepared statement that although the 2007/08 results were encouraging, illegal and offshore operators were increasingly targeting the club's top customers and it was not being given the opportunity to respond.
"Hong Kong has worked hard to establish its position as a global leader in horse racing and football betting, but this leadership position is now being eroded by a trend of betting deregulation that is fast taking root throughout this part of the world," he said. "If the Club is not allowed the ability to remain competitive, the major losers in the end will be the public purse and the community at large."