HK Cap. 108 — Betting Duty Ordinance

To provide for the authorization of cash-sweeps, lotteries, betting on horse races, betting on football matches and betting on basketball matches; to charge duties in relation to those authorized betting activities; to establish a body to be known as the “Betting and Lotteries Commission”; to amend the law relating to gambling; and to provide for related matters. (Replaced 29 of 2003 s. 2 . Amended 17 of 2006 s. 2 ; 38 of 2025 s. 3 ) [1 January 1932] (Format changes— E.R. 5 of 2021 ) Part 1 Preliminary (Added 29 of 2003 s. 3 ) 1. Short title This Ordinance may be cited as the Betting Duty Ordinance . 1A. Interpretation (1) In this Ordinance— (Amended 17 of 2006 s. 3 ; 38 of 2025 s. 4 ) authorized betting activity ( 獲批准投注活動 ) means a betting activity authorized under section 2 , 6GB , 6I , 6WH or 6X ; (Amended 17 of 2006 s. 3 ; 38 of 2025 s. 4 ) basketball betting conductor ( 籃球投注舉辦商 ) means a company authorized under section 6WH to conduct betting on basketball matches; (Added 38 of 2025 s. 4 ) charging period ( 課稅期 )— (a) in relation to a horse race betting conductor—see section 6GH ; (b) in relation to a football betting conductor—see section 6M ; or (c) in relation to a basketball betting conductor—see section 6WL ; (Replaced 38 of 2025 s. 4 ) Collector ( 署長 ) means the Collector of Stamp Revenue appointed under section 3 of the Stamp Duty Ordinance ( Cap. 117 ); company ( 公司 ) means a company within the meaning of the Companies Ordinance ( Cap. 622 ), or a company registered under Part 16 of that Ordinance; (Amended 28 of 2012 ss. 912 & 920) director ( 董事 ) includes any person occupying the position of director by whatever name called; (Added 17 of 2006 s. 3 ) football ( 足球 ) does not include American football, Australian Rules Football or rugby; football betting conductor ( 足球投注舉辦商 ) means a company that is authorized under section 6I to conduct betting on football matches; horse race betting conductor ( 賽馬投注舉辦商 ) means a company that is authorized under section 6GB to conduct betting on horse races; (Added 17 of 2006 s. 3 ) local horse race ( 本地賽馬 ) means a horse race held in Hong Kong; (Added 6 of 2013 s. 3 ) lottery conductor ( 獎券活動舉辦商 ) means a company that is authorized under section 6X to conduct lotteries; net stake receipts ( 淨投注金收入 ) means— (a) in relation to the conduct of authorized betting on local horse races by a horse race betting conductor—the net stake receipts as calculated under section 6GF(1) ; (Amended 6 of 2013 s. 3 ) (ab) in relation to the conduct of authorized betting on non-local horse races by a horse race betting conductor—the net stake receipts as calculated under section 6GF(1A) ; (Added 6 of 2013 s. 3 ) (b) in relation to the conduct of authorized betting on football matches by a football betting conductor—the net stake receipts as calculated under section 6K and adjusted under section 6L ; or (Replaced 17 of 2006 s. 3 . Amended 38 of 2025 s. 4 ) (c) in relation to the conduct of authorized betting on basketball matches by a basketball betting conductor—the net stake receipts as calculated under section 6WJ and adjusted under section 6WK ; (Added 38 of 2025 s. 4 ) non-local horse race ( 境外賽馬 ) means a horse race held outside Hong Kong; (Added 6 of 2013 s. 3 ) Secretary ( 局長 ) means the Secretary for Home and Youth Affairs; (Added 17 of 2006 s. 3 . Amended L.N. 144 of 2022 ) specified form ( 指明格式 ) means a form specified under section 7(3) ; (Amended 17 of 2006 s. 3 ) specified horse race betting conductor ( 指明賽馬投注舉辦商 ) means the company that— (a) has been issued with a licence under section 6GB that is in force on 1 September 2013; and (b) is authorized under that section to conduct betting on horse races, whether by that licence or another licence. (Added 6 of 2013 s. 3 . Amended 38 of 2025 s. 4 ) (Amended 6 of 2013 s. 3 ; 38 of 2025 s. 4 ) (2) (Repealed 6 of 2013 s. 3 ) (Added 29 of 2003 s. 4 ) Part 2 Cash-sweeps on Horse Races (Added 29 of 2003 s. 5 . Amended 17 of 2006 s. 4 ) 2. Authorization of club cash-sweeps on horse races (Amended 17 of 2006 s. 5 ) Ordinary social or sporting clubs in Hong Kong may, with the permission in writing in each case of the Secretary and subject to such conditions as he may see fit to impose, conduct cash-sweeps on horse races: Provided that not less than 88%, or in the case of a club organizing the race not less than 72%, of the total contributions or subscriptions, after deduction of the duty, shall be devoted to prizes for the subscribers. (Amended 25 of 1937 s. 2 ; 20 of 1941 s. 2 ; 7 of 1947 s. 2 ; 51 of 1975 s. 3 ; 37 of 1989 s. 3 ; L.N. 362 of 1997 ; 17 of 2006 s. 5 ) 3. (Repealed 17 of 2006 s. 6 ) Editorial Note: Please see the savings provision in section 22 of the Betting Duty (Amendment) Ordinance 2006 ( 17 of 2006 ). 4. Allocation of chances in cash-sweeps (1) In the case of cash-sweeps organized by clubs in Hong Kong the chances shall be allocated by numbered tickets issued in books with or without counterfoils as the Secretary may decide: Provided that the Secretary may permit any club to issue lists of numbers against which the names of the subscribers shall be entered. (2) In the case of cash-sweeps organized by clubs or other bodies elsewhere, ordinary social, sporting race, jockey or hunt clubs in Hong Kong as agents for the organizing club or other body and with the permission in writing of the Secretary may provide lists of numbers, against which their members may sign their names as subscribers for chances, or may issue books of numbered tickets, as the Secretary may decide. (Amended 25 of 1937 s. 2 ; 51 of 1975 s. 3 ; 37 of 1989 s. 3 ; L.N. 362 of 1997 ; 17 of 2006 s. 7 ) 4A. (Repealed 29 of 2003 s. 6 ) Editorial Note: Please see the transitional provisions in section 24 of the Betting Duty (Amendment) Ordinance 2003 ( 29 of 2003 ). 4B. (Repealed 29 of 2003 s. 7 ) 4C. (Repealed 29 of 2003 s. 8 ) 4D. (Repealed 29 of 2003 s. 9 ) 4E. (Repealed 29 of 2003 s. 10 ) 5. Restriction on sale of tickets (1) No tickets, lists, receipts, or other substitutes for tickets recording the numbers of the chances allocated for any cash-sweep may be made, printed, issued, sold or offered for sale except by or on behalf of a club which has received the permission of the Secretary under this Ordinance. (Replaced 6 of 1949 s. 2 . Amended 51 of 1975 s. 3 ; L.N. 362 of 1997 ; 29 of 2003 s. 11 ; 17 of 2006 s. 8 ) (2) A person who contravenes subsection (1) commits an offence and is liable to a fine at level 5. (Added 29 of 2003 s. 11 ) 6. Duty in relation to cash-sweeps (Amended 17 of 2006 s. 9 ) (1) (Repealed 17 of 2006 s. 9 ) (1A) (Repealed 29 of 2003 s. 12 ) (2) On every cash-sweep ticket sold and on every cash-sweep chance allocated by list as provided in section 4 there shall be charged a duty at the rate of 30% on the amount paid, contributed or subscribed. (Amended 19 of 1983 s. 4 ; L.N. 97 of 1984 ) (3) The rates of duty specified in subsection (2) may be amended by resolution of the Legislative Council. (Amended 51 of 1975 s. 6 ; 29 of 2003 s. 12 ; 17 of 2006 s. 9 ) (4) The secretary, treasurer and every steward and member of the committee of management of the club, as well as the club itself if a corporation, shall be jointly and severally liable for the duty payable. (5) (Repealed 17 of 2006 s. 9 ) (Replaced L.N. 87 of 1975 ; 31 of 1975 s. 2 ) 6A. Offences and penalties under Part 2 (1) If a person acts in contravention of or fails to comply with this Part or any condition imposed under this Part, the person commits an offence and is liable to, if no other penalty is provided by this Part, a fine at level 3. (2) If a club acts in contravention of or fails to comply with this Part or any condition imposed under this Part, the secretary, treasurer and every steward or member of the committee or management of the club commit an offence and each is liable to, if no other penalty is provided by this Part, a fine at level 3. (Added 29 of 2003 s. 13 ) Part 3 Betting on Horse Races, Football Matches and Basketball Matches, and Lotteries (Amended 17 of 2006 s. 10 ; 38 of 2025 s. 5 ) ( Part 3 added 29 of 2003 s. 14 ) Division 1 Preliminary 6B. Interpretation of Part 3 (1) In this Part— associate ( 相聯者 ) means, in relation to a person— (a) the wife, husband or a minor child (including a minor step-child) of that person; (b) a body corporate of which that person is a director; (c) an employee or partner of that person; or (d) if that person is a body corporate— (i) a director of that body corporate; (ii) a subsidiary of that body corporate; or (iii) a director or employee of any such subsidiary; controller ( 控制人 ) means, in relation to a company, a person who, alone or with any associate or through a nominee, is entitled to exercise, or control the exercise of, 15% or more of the voting power at any general meeting of the company, or a body corporate of which the company is a subsidiary; financial penalty ( 罰款 ) means a financial penalty imposed under section 6ZE ; fixed odds betting ( 固定賠率投注 ) means betting on the terms that any dividend payable on a bet is fixed at the time when the bet is placed; (Added 17 of 2006 s. 11 ) juvenile ( 未成年人士 ) means a person under the age of 18 years; pari-mutuel betting ( 彩池投注 ) means betting on the terms that any dividend payable on a bet depends on the respective shares of all winning bettors in the total amount of dividends available; (Added 17 of 2006 s. 11 ) principal officer ( 主要人員 ) means, in relation to a company, a person employed by the company who— (a) either alone or with any person, is responsible under the immediate authority of the directors of the company for the conduct of the business of the company; or (b) under the immediate authority of a director of the company or a person employed by the company, exercises managerial functions in respect of the company; subsidiary ( 附屬公司 ) has the same meaning as in the Companies Ordinance ( Cap. 622 ). (Amended 28 of 2012 ss. 912 & 920) (2) A reference in this Part to a condition of a licence shall be a reference to a condition subject to which the licence is issued, or to continue in force. (Amended 17 of 2006 s. 11 ) 6C. Determining if a person is a “fit and proper” person In determining for the purpose of any provision of this Part if a person is a fit and proper person, the Secretary shall, having regard to that purpose, take into account— (a) the person’s financial status and financial integrity; (b) the person’s qualifications and experience; (c) the person’s ability to act competently, honestly and fairly; (d) the person’s reputation and reliability; (e) whether or not the person has any potential or actual conflict of interest; (f) whether or not the person has been charged with or convicted of any offence, whether in Hong Kong or elsewhere; and (g) any other matter that the Secretary considers relevant. Division 2 Betting and Lotteries Commission (Amended 17 of 2006 s. 12 ) 6D. Establishment and composition (1) There is established a body called the “Betting and Lotteries Commission” in English and “博彩及獎券事務委員會” in Chinese. (Amended 17 of 2006 s. 13 ) (2) The Chief Executive shall appoint— (a) 3 public officers as members of the Commission; (b) not less than 8 persons, who are not public officers, as members of the Commission; and (c) one of the members appointed under paragraph (b) as the Chairperson of the Commission. (3) Of the persons appointed under subsection (2)(b) — (a) at least one shall be a registered social worker within the meaning of the Social Workers Registration Ordinance ( Cap. 505 ); (b) at least one shall be eligible under the Legislative Council Ordinance ( Cap. 542 ) to be registered as an elector for the education functional constituency specified in section 20(1)(e) of that Ordinance; and (c) at least one shall— (i) occupy in any organized religion any office associated with the teaching of, the giving of guidance on, or the promotion of adherence to, the precepts of the religion; or (ii) be engaged in the teaching of any theology, philosophy or ethics. (4) If— (a) a person appointed under subsection (2)(b) ceases to be a member; and (b) as a result, the total number of members appointed under that subsection falls below 8, the Chief Executive shall, within 3 months after the date on which the person ceases to be a member, appoint another person as a member under that subsection. (5) If— (a) a person appointed under subsection (2)(b) ceases to be a member; and (b) as a result, subsection (3) is no longer complied with, the Chief Executive shall, within 3 months after the date on which the person ceases to be a member, appoint another person as a member under subsection (2)(b) so that subsection (3) will be complied with. (6) As soon as practicable after a person is appointed as, or has ceased to be, a member of the Commission, the Secretary shall publish a notice of that fact in the Gazette. (7) If one of the reasons for appointing a person under subsection (2)(b) is to comply with subsection (3), the notice published under subsection (6) in relation to the person shall contain a statement of that fact. (8) A member of the Commission may resign at any time from membership by notice in writing given to the Chief Executive. 6E. Function (1) The function of the Commission is to advise the Secretary on matters provided for or otherwise relating to this Part, including— (a) the regulation of the conduct of betting on horse races, football matches and basketball matches, and lotteries; (Amended 17 of 2006 s. 14 ; 38 of 2025 s. 6 ) (b) the issuance and revocation of licences under this Part, and the variation of the conditions of such licences; (c) in relation to a licence issued under this Part— (i) the compliance with the conditions of the licence; and (ii) the handling of complaints that relate to non-compliance with the conditions of the licence; and (d) the imposition of financial penalties. (2) The Commission is neither a servant nor an agent of the Government and does not enjoy any status, immunity or privilege of the Government. 6F. Performance of function The Commission may perform its function at the request of the Secretary or on its own initiative. 6G. Meetings and procedure (1) The Commission shall meet at such times and at such places as its Chairperson may appoint. (2) The quorum for a meeting of the Commission shall be not less than 6 members or one-third of the total number of members of the Commission, whichever is the greater. (3) The Commission may make rules regulating the procedure at its meetings. (4) If the Chairperson of the Commission reasonably believes that it is impracticable to call a meeting of the Commission, the Commission may transact its business by circulation of papers. (5) A resolution in writing that is approved on circulation of papers by a majority of the members of the Commission shall be valid as if the resolution had been passed at a meeting of the Commission by the votes of the members so approving the resolution. Division 2A Betting on horse races ( Division 2A added 17 of 2006 s. 15 ) 6GA. Interpretation of Division 2A (1) In this Division— horse race betting duty ( 賽馬博彩稅 ) means the duty charged under section 6GD ; (Amended 6 of 2013 s. 4 ; 38 of 2025 s. 7 ) last charging period ( 最後課稅期 ) means, in relation to a horse race betting conductor, the charging period that comes to an end when the conductor’s licence is terminated; notice of additional assessment ( 補加評估通知 ) means a notice of additional assessment given under section 6GL ; notice of assessment ( 評估通知 ) means a notice of assessment given under section 6GK ; provisional payment ( 暫繳付款 ) means the race provisional payment referred to in section 6GI(1)(a)(i) or (ii). (Amended 6 of 2013 s. 4 ; 38 of 2025 s. 7 ) (Amended 6 of 2013 s. 4 ) (2) For the purpose of this Division, a bet is relevant to a charging period, if, within that charging period, the horse race betting conductor becomes— (a) entitled to forfeit the bet; or (b) liable to pay a dividend on the bet. (3) For the purpose of this Division, if— (a) a horse race betting conductor’s licence is revoked or otherwise terminated; and (b) after the termination, the company to which the licence was issued becomes— (i) entitled to forfeit a bet that was accepted before the termination; or (ii) liable to pay a dividend on such a bet, the bet is taken to be relevant to the last charging period. 6GB. Authorization of betting on horse races (1) Subject to subsection (2), the Secretary may, by issuing a licence to a company, authorize the company to conduct fixed odds betting or pari-mutuel betting on the results of, or contingencies relating to, horse races. (2) The Secretary shall not issue the licence to a company unless the Secretary is satisfied that the company, and all the directors, principal officers and controllers of the company, are fit and proper persons for the purpose of this section. (3) The term for which the licence is issued shall be specified in the licence. (4) Issuance of the licence to a company is subject to the conditions that the company— (a) shall not accept, or authorize any person to accept, bets from juveniles; (b) shall not accept bets in any premises to which juveniles are permitted to have access; (c) shall not pay dividends or rebates on bets to juveniles; (d) shall not, subject to subsection (6), advertise the conduct of betting on horse races on television or radio— (i) between the hours of 9:30 a.m. and 10:30 p.m. on any Saturday or Sunday; or (ii) between the hours of 4:30 p.m. and 10:30 p.m. on any other day; (e) shall not, in conducting any advertising or promotional activity— (i) target juveniles; (ii) exaggerate the likelihood of winning; or (iii) expressly or impliedly suggest that betting on horse races is a source of income or a viable way to overcome financial difficulties; (f) shall not accept bets on credit, or accept credit cards as a means of payment for placing bets; and (g) shall conspicuously display and keep displayed notices that comply with subsection (7)— (i) in any premises where the company accepts bets; and (ii) on any website, and mobile application, through which the company accepts bets. (Amended 38 of 2025 s. 8 ) (5) Issuance of the licence is also subject to such conditions as the Secretary may think fit to impose, including but not limited to conditions relating to— (a) the categories and dates of races on which betting may be conducted; (b) the manner and form in which bets may be accepted; (c) the keeping of premises for accepting bets, the number of such premises and the persons who may have access to such premises; and (d) the provision of information to the Secretary. (6) For the purpose of subsection (4)(d) , the company is not taken as advertising the conduct of betting on horse races on television or radio between the hours specified in that provision if that company— (a) broadcasts, between those hours, on television or radio any forecast, hint, odds or tip relating to guessing or foretelling the result of, or contingency relating to, any horse race on which authorized betting may be conducted; or (b) authorizes such forecast, hint, odds or tip to be broadcast, between those hours, on television or radio. (7) Any notice referred to in subsection (4)(g) shall— (a) contain a warning of the seriousness of the problems caused by excessive gambling; and (b) provide information on the services and facilities available in Hong Kong to problem gamblers and pathological gamblers. 6GC. (Repealed 6 of 2013 s. 5 ) 6GD. Horse race betting duty (1) A duty is charged, at the rate specified in Schedule 1 , on the net stake receipts that are derived from the conduct of authorized betting on local horse races by a horse race betting conductor in respect of each charging period. (Amended 6 of 2013 s. 6 ) (2)-(3) (Repealed 6 of 2013 s. 6 ) (3A) A duty is charged, at the rate specified in Schedule 3 , on the net stake receipts that are derived from the conduct of authorized betting on non-local horse races by a horse race betting conductor in respect of each charging period. (Added 6 of 2013 s. 6 ) (4) The duty charged under subsection (1) or (3A) is payable by the conductor. (Amended 6 of 2013 s. 6 ) (5) (Repealed 6 of 2013 s. 6 ) (6) The Legislative Council may, by resolution, amend Schedule 1 or 3 . (Amended 6 of 2013 s. 6 ) (7)-(8) (Repealed 6 of 2013 s. 6 ) 6GE. (Repealed 6 of 2013 s. 7 ) 6GEA. (Repealed 38 of 2025 s. 9 ) 6GF. Calculation of net stake receipts (1) The net stake receipts that are derived from the conduct of authorized betting on local horse races by a horse race betting conductor in respect of a charging period are calculated by using the following mathematical formula— (Amended 6 of 2013 s. 9 ) Q – Y where— Q represents the total amount of bets that— (a) are accepted in relation to the conduct of authorized betting on local horse races by the conductor; and (Amended 6 of 2013 s. 9 ) (b) are relevant to that charging period; Y represents the total amount of dividends and of rebates on bets that have, within that charging period, become payable on local horse races by the conductor. (Amended 6 of 2013 s. 9 ) (1A) The net stake receipts that are derived from the conduct of authorized betting on non-local horse races by a horse race betting conductor in respect of a charging period are calculated by using the following mathematical formula— L – M – N where— L represents the total amount of bets that— (a) are accepted in relation to the conduct of authorized betting on non-local horse races by the conductor; and (b) are relevant to that charging period; M represents the total amount of dividends and of rebates on bets that have, within that charging period, become payable on non-local horse races by the conductor; N represents the aggregate of the extra amount payable by the conductor for each bet type in a non-local horse race on which authorized betting is conducted by the conductor within that charging period. (Added 6 of 2013 s. 9 ) (1B) In this section— extra amount ( 額外款額 ), in relation to a bet type in a non-local horse race, means the portion of the specified amount for the bet type payable by the horse race betting conductor that exceeds 1.5% of the total amount of bets of that type that— (a) are accepted in relation to the conduct of authorized betting on the race by the conductor; and (b) are relevant to the charging period; specified amount ( 指明款額 ), in relation to a bet type in a non-local horse race, means the aggregate of— (a) the amount payable to the specified payee for the right to use in Hong Kong, in relation to the conduct of authorized betting of that type on the race by the horse race betting conductor, either or both of the following— (i) sounds or visual images (whether animated or not) relating to the race, or both; (ii) any information relating to the race, other than in the form of sounds or visual images (whether animated or not); and (b) the amount payable to the specified payee for the right to conduct in Hong Kong betting of that type on the race; specified payee ( 指明受款人 ), in relation to a right, means the person who owns or manages the right under the law that governs the right. (Added 6 of 2013 s. 9 ) (2) For the purpose of this section, if— (a) a horse race betting conductor’s licence is revoked or otherwise terminated; and (b) after the termination, the company to which the licence was issued becomes liable to pay a dividend or a rebate on a bet that was accepted before the termination, the dividend or rebate is taken to have become payable within the last charging period. 6GG. (Repealed 6 of 2013 s. 10 ) 6GGA. (Repealed 38 of 2025 s. 9 ) 6GH. Definition of charging period (1) Subject to any agreement made under subsection (3), charging period ( 課稅期 ) means, in relation to a horse race betting conductor, a period within which the licence issued to the conductor is in force, being— (a) a period that begins with the day on which the licence comes into force and ends with— (i) the next following 31 March; or (ii) the date on which the licence is terminated, whichever is the earlier; or (b) any subsequent period that begins with 1 April and ends with— (i) the next following 31 March; or (ii) the date on which the licence is terminated, whichever is the earlier. (2) For the purpose of subsection (1), if— (a) before the licence is terminated, the conductor is issued with a new licence under section 6GB ; and (b) the term of the new licence is to start immediately after the termination of the original licence, that subsection applies as if the term of the new licence were an extended term of the original licence. (3) The Collector may agree with the conductor— (a) in relation to a charging period that has begun but not come to an end, to change the date on which that charging period is to come to an end; or (b) in relation to a charging period that has not begun, to change either or both of the following dates— (i) the date on which that charging period is to begin; (ii) the date on which that charging period is to come to an end. (4) An agreement made under subsection (3) has no effect if, according to the agreement— (a) a day covered by a charging period is not covered by the term of the licence; (b) a day covered by the term of the licence is not covered by any charging period; or (c) a day covered by the term of the licence is covered by more than one charging period. 6GI. Provisional payments (1) A horse race betting conductor shall, within 15 days after each reporting day in a charging period— (a) make— (i) a race provisional payment for the horse race betting duty charged under section 6GD(1) , calculated by using the mathematical formula set out in subsection (2)(a) ; and (ii) a race provisional payment for the horse race betting duty charged under section 6GD(3A) , calculated by using the mathematical formula set out in subsection (2)(b) , to the Collector; and (Amended 6 of 2013 s. 12 ) (b) in making such a payment, submit to the Collector a calculation sheet, in the specified form, showing how the amount being paid has been arrived at. (2) The mathematical formulae are— (a) G – U; and (b) H – V where— G represents the amount of horse race betting duty charged under section 6GD(1) that the horse race betting conductor would be liable to pay for that charging period if the reporting day were the last day of that charging period; (Amended 6 of 2013 s. 12 ) H represents the amount of horse race betting duty charged under section 6GD(3A) that the horse race betting conductor would be liable to pay for that charging period if the reporting day were the last day of that charging period; (Amended 6 of 2013 s. 12 ) U represents the total amount of race provisional payments referred to in subsection (1)(a)(i) that, immediately before the reporting day, the horse race betting conductor has made, or was already liable to make, for that charging period; V represents the total amount of race provisional payments referred to in subsection (1)(a)(ii) that, immediately before the reporting day, the horse race betting conductor has made, or was already liable to make, for that charging period. (3)-(4) (Repealed 38 of 2025 s. 10 ) (5) The Collector shall apply all provisional payments made by a horse race betting conductor for a charging period towards settlement of the horse race betting duty that is payable by the conductor for that charging period. (6) A horse race betting conductor that, without reasonable excuse, contravenes this section commits an offence and is liable to a fine at level 3. (7) In this section— reporting day ( 申報日 ) means any day on which the horse race betting conductor becomes— (a) entitled to forfeit a bet on a horse race on which the conductor may conduct authorized betting; or (b) liable to pay a dividend on the bet. (Amended 38 of 2025 s. 10 ) 6GJ. Demand for provisional payment (1) If a horse race betting conductor has not made a provisional payment in full, the Collector may, by notice in writing given to the conductor, demand payment of the unpaid amount. (2) The notice shall specify the manner in which and the date on or before which the amount shall be paid. (3) If the conductor fails to make payment in accordance with the notice, the Government may recover the unpaid amount as a civil debt. 6GK. Assessment of net stake receipts and horse race betting duty (1) As soon as practicable after the end of a charging period, the Collector shall assess— (a) the net stake receipts that were derived from the conduct of authorized betting on horse races by a horse race betting conductor in respect of that charging period; and (b) the horse race betting duty that is payable by the conductor for that charging period. (2) The assessment may only be made within 6 years after the end of that charging period. (3) If, based on the assessment— (a) the horse race betting duty payable exceeds the provisional payments that have been made for the charging period, the conductor shall pay the difference to the Collector in accordance with the notice of assessment; or (b) the provisional payments that have been so made exceed the horse race betting duty payable, the Collector shall refund the difference to the conductor. (4) As soon as practicable after making the assessment, the Collector shall give the conductor a notice of assessment in writing, specifying— (a) the amount of net stake receipts as assessed; (b) the amount of horse race betting duty that is payable; (c) the total amount of provisional payments that have been made; (d) if subsection (3)(a) applies, the amount that the conductor shall pay, and the manner in which and the date on or before which the amount shall be paid; and (e) if subsection (3)(b) applies, the amount that the Collector shall refund. 6GL. Additional assessment (1) This section applies if, despite having given a notice of assessment to a horse race betting conductor in relation to a charging period, the Collector reasonably believes that— (a) the net stake receipts that were derived from the conduct of authorized betting on horse races by the conductor in respect of that charging period exceed the amount of net stake receipts as specified in the notice; or (b) the horse race betting duty that is payable by the conductor for that charging period exceeds the amount of horse race betting duty as specified in the notice. (2) The Collector shall, in the case of subsection (1)(a) , make an additional assessment of— (a) the net stake receipts that were derived in respect of that charging period; and (b) the horse race betting duty that is payable for that charging period. (3) The Collector shall, in the case of subsection (1)(b) , make an additional assessment of the horse race betting duty that is payable by the conductor for that charging period. (4) The additional assessment may only be made within 6 years after the end of that charging period. (5) As soon as practicable after making the additional assessment, the Collector shall give the conductor a notice of additional assessment in writing, specifying— (a) if applicable, the amount of net stake receipts as additionally assessed; and (b) the amount of additional horse race betting duty that is payable by the conductor, and the manner in which and the date on or before which the amount shall be paid. (6) The conductor shall make payment to the Collector in accordance with the notice of additional assessment. 6GM. Surcharges (1) If a notice of assessment, notice of additional assessment or notice of payment given under section 6GO(4) specifies that a horse race betting conductor shall pay an amount on or before a date, the Collector may, by notice in writing given to the conductor, demand the conductor to pay— (a) a surcharge if that amount is not fully paid on or before that date; and (b) a further surcharge if that amount is not fully paid at the end of 6 months after that date. (2) The surcharge shall not exceed 5% of the unpaid part of the amount referred to in subsection (1). (3) The further surcharge shall not exceed 10% of the total of— (a) the unpaid part of the amount referred to in subsection (1); and (b) if the surcharge is not fully paid at the end of the 6 months referred to in subsection (1)(b) , the unpaid part of the surcharge. (4) The Government may recover any surcharge or further surcharge as a civil debt. 6GN. Appeal against assessment and holding over of duty (1) A horse race betting conductor that is dissatisfied with an assessment under section 6GK , or an additional assessment under section 6GL , may appeal against the assessment concerned to the District Court. (2) The appeal may only be made within 1 month after the date on which the notice of assessment or notice of additional assessment, as the case may be, is given. (3) The appeal shall be made by giving a notice of appeal in writing to the Registrar of the Court and the Collector. (4) As soon as practicable after receiving the notice of appeal, the Collector shall— (a) state and sign a case, setting out— (i) a summary of the facts that are relevant to the assessment concerned; and (ii) how the assessment concerned has been made; and (b) serve a copy of the case on the conductor, the Registrar and the Secretary for Justice. (5) The appeal may only be set down for hearing within 14 days after copies of the case have been served in accordance with subsection (4)(b) . (6) The Court shall determine the appeal by rescinding, varying or confirming the assessment concerned, and may make such other orders as the Court thinks fit. (7) (Repealed 6 of 2013 s.13 ) (8) If, according to the assessment concerned, an amount is payable by the conductor under section 6GK or 6GL , as the case may be— (a) the making of the appeal does not affect the conductor’s obligation to pay the amount; and (b) the Collector may, at the request of the conductor and subject to any condition that the Collector may impose, order that payment of the whole or part of the amount be held over pending the final determination of the appeal. 6GO. Provisions relating to holding over (1) This section applies if— (a) a notice of assessment or notice of additional assessment, as the case may be, specifies that a horse race betting conductor shall pay an amount on or before a date; and (b) the Collector has ordered under section 6GN(8)(b) that payment of the whole or part of the amount be held over pending the final determination of an appeal made by the conductor. (2) If the conductor withdraws the appeal, the conductor shall pay the Collector— (a) the amount that was held over; and (b) interest on the amount that was held over, calculated at the specified rate from the date referred to in subsection (1)(a) to the date on which the appeal is withdrawn. (3) If, according to the final determination of the appeal, the amount that is payable by the conductor under the assessment concerned exceeds the amount that was not held over, the conductor shall pay the Collector— (a) the difference between the 2 amounts; and (b) interest on so much of the amount that is held over and becomes payable as a result of the final determination, calculated at the specified rate from the date referred to in subsection (1)(a) to the date on which the appeal is finally determined. (4) Where an amount is payable by the conductor under subsection (2) or (3)— (a) the Collector shall give the conductor a notice of payment in writing, specifying— (i) the total amount that is payable; and (ii) the manner in which and the date on or before which the amount shall be paid; and (b) the conductor shall pay the amount in accordance with the notice given under paragraph (a). (5) The Government may recover any interest payable under this section as a civil debt. (6) In this section, specified rate ( 指明利率 ) means the rate determined by the Chief Justice by order under section 50(1)(b) of the District Court Ordinance ( Cap. 336 ). 6GP. (Repealed 6 of 2013 s.14 ) 6GQ. Restrictions relating to horse race betting tickets (1) A person shall not make, print, issue, sell or offer to sell a horse race betting ticket unless the person is— (a) a horse race betting conductor; or (b) so acting on behalf of a horse race betting conductor. (2) A person who contravenes subsection (1) commits an offence and is liable to a fine at level 5. (3) In this section, horse race betting ticket ( 賽馬投注彩票 ) means a ticket that is used or to be used to— (a) record the placing of a bet with a horse race betting conductor; and (b) claim any dividend or rebate that is payable on the bet. Division 3 Betting on football matches 6H. Interpretation of Division 3 In this Division— football betting duty ( 足球博彩稅 ) means the duty that is charged under section 6J ; last charging period ( 最後課稅期 ) means, in relation to a football betting conductor, the charging period that comes to an end when the conductor’s licence is terminated; notice of additional assessment ( 補加評估通知 ) means a notice of additional assessment given under section 6Q ; notice of assessment ( 評估通知 ) means a notice of assessment given under section 6P ; provisional payment ( 暫繳付款 ) means the provisional payment that a football betting conductor is required to make under section 6N . 6I. Authorization of betting on football matches (1) Subject to subsection (2), the Secretary may, by issuing a licence to a company, authorize the company to conduct fixed odds betting or pari-mutuel betting on the results of, or contingencies relating to, football matches. (2) The Secretary shall not issue the licence to a company unless the Secretary is satisfied that the company, and all the directors, principal officers and controllers of the company, are fit and proper persons for the purpose of this section. (3) The term for which the licence is issued shall be specified in the licence. (4) Issuance of the licence to a company is subject to the conditions that the company— (a) shall not accept, or authorize any person to accept, bets from juveniles; (b) shall not accept bets in any premises to which juveniles are permitted to have access; (c) shall not pay dividends to juveniles; (d) shall not advertise the conduct of betting on football matches on television or radio between the hours of 4:30 p.m. and 10:30 p.m. on any day; (Amended E.R. 5 of 2021 ) (e) shall not, in conducting any advertising or promotional activity— (i) target juveniles; (ii) exaggerate the likelihood of winning; or (iii) expressly or impliedly suggest that betting on football matches is a source of income or a viable way to overcome financial difficulties; (f) shall not accept bets on credit, or accept credit cards as a means of payment for placing bets; and (g) shall conspicuously display and keep displayed notices that comply with subsection (6)— (i) in any premises where the company accepts bets; and (ii) on any website, and mobile application, through which the company accepts bets. (Amended 38 of 2025 s. 11 ) (5) Issuance of the licence is also subject to such conditions as the Secretary may think fit to impose, including but not limited to conditions relating to— (a) the categories of matches on which betting may be conducted; (b) the manner and form in which bets may be accepted; (c) the keeping of premises for accepting bets, the number of such premises and the persons who may have access to such premises; and (d) the provision of information to the Secretary. (6) Any notice referred to in subsection (4)(g) shall— (a) contain a warning of the seriousness of the problems caused by excessive gambling; and (b) provide information on the services and facilities available in Hong Kong to problem gamblers and pathological gamblers. (7) (Repealed 17 of 2006 s. 16 ) 6J. Football betting duty (1) A duty is charged at the rate of 50% on the net stake receipts that are derived from the conduct of authorized betting on football matches by a football betting conductor in respect of each charging period. (2) The duty shall be payable by the football betting conductor. (3) The Legislative Council may, by resolution, amend the rate of duty specified in subsection (1). 6K. Calculation of net stake receipts (1) Subject to any adjustments made under section 6L , the amount of the net stake receipts derived from the conduct of authorized betting on football matches by a football betting conductor for a charging period is calculated by using the following formula— (Amended 38 of 2025 s. 12 ) A – B where— A represents the total amount of bets that are— (a) accepted by the conductor; and (b) relevant to that charging period; B represents the total amount of dividends that have, within that charging period, become payable by the conductor. (2) For the purpose of subsection (1), a bet is relevant to a charging period if, within that charging period, the conductor becomes— (a) entitled to forfeit the bet; or (b) liable to pay a dividend on the bet. (3) If— (a) the conductor’s licence is revoked or otherwise terminated; and (b) after the termination, the company to which the licence was issued becomes— (i) entitled to forfeit a bet that was accepted before the termination; or (ii) liable to pay a dividend on the bet, then— (c) the bet is taken to be relevant to the last charging period; and (d) any dividend that becomes payable after the termination is taken to have become payable within the last charging period. 6L. Adjustments to net stake receipts (1) For the purpose of section 6K , the net stake receipts that are derived from the conduct of authorized betting on football matches by a football betting conductor in respect of a charging period shall be adjusted by adding an amount that is calculated by using the following mathematical formula— (C – D) + (E – F) where— C represents the total amount of dividends that— (a) are payable by the conductor; and (b) have, within that charging period, become unclaimed dividends; D represents the total amount of unclaimed dividends that are subsequently paid, within that charging period, by the conductor; E represents the total amount of dividends that become, within that charging period, payable to the conductor on hedging bets placed by the conductor; F represents the total amount of hedging bets that are— (a) paid or payable by the conductor; and (b) relevant to that charging period. (2) For the purpose of subsection (1)— (a) if the dividend payable on a hedging bet is expressed in a currency other than Hong Kong dollars, the amount of the dividend shall be converted to Hong Kong dollars at an exchange rate that is acceptable to the Collector as prevailing in Hong Kong when the dividend becomes payable; (b) if the amount paid or payable for a hedging bet is expressed in a currency other than Hong Kong dollars, the amount shall be converted to Hong Kong dollars at an exchange rate that is acceptable to the Collector as prevailing in Hong Kong when the amount becomes payable; and (c) a hedging bet is relevant to a charging period if, within that charging period, the person who received the bet becomes— (i) entitled to forfeit the bet; or (ii) liable to pay a dividend on the bet. (3) If, after the last charging period— (a) a dividend becomes an unclaimed dividend, the dividend is taken to have become an unclaimed dividend within the last charging period; (b) an unclaimed dividend is subsequently paid, the unclaimed dividend is taken to have been paid within the last charging period; (c) a dividend becomes payable on a hedging bet, the dividend is taken to have become payable within the last charging period; and (d) the person who has received a hedging bet becomes— (i) entitled to forfeit the bet; or (ii) liable to pay a dividend on the bet, the bet is taken to be relevant to the last charging period. (4) For this section, if a dividend is not paid within 60 days after the day on which the dividend becomes payable, the dividend becomes an unclaimed dividend at the end of the 60 days. (Replaced 38 of 2025 s. 13 ) (5) In this section— hedging bet ( 對沖投注 ), subject to section 6V(6) , means a bet placed by a football betting conductor under section 6U . (Added 38 of 2025 s. 13 ) 6M. Definition of charging period (1) Subject to any agreement made under subsection (3), charging period ( 課稅期 ) means, in relation to a football betting conductor, a period within which the licence issued to the conductor is in force, being— (a) a period that begins with the day on which the licence comes into force and ends with— (i) the next following 31 March; or (ii) the date on which the licence is terminated, whichever is the earlier; or (b) any subsequent period that begins with 1 April and ends with— (i) the next following 31 March; or (ii) the date on which the licence is terminated, whichever is the earlier. (2) For the purpose of subsection (1), if— (a) before the licence is terminated, the conductor is issued with a new licence under section 6I ; and (b) the term of the new licence is to start immediately after the termination of the original licence, that subsection applies as if the term of the new licence were an extended term of the original licence. (3) The Collector may agree with the conductor— (a) in relation to a charging period that has begun but not come to an end, to change the date on which that charging period is to come to an end; or (b) in relation to a charging period that has not begun, to change either or both of the following dates— (i) the date on which that charging period is to begin; (ii) the date on which that charging period is to come to an end. (4) An agreement made under subsection (3) has no effect if, according to the agreement— (a) a day covered by a charging period is not covered by the term of the licence; (b) a day covered by the term of the licence is not covered by any charging period; or (c) a day covered by the term of the licence is covered by more than one charging period. 6N. Provisional payments (1) Within 15 days after each accounting day in a charging period, a football betting conductor shall make a provisional payment to the Collector. (2) The provisional payment is calculated by using the following mathematical formula— X – Y where— X represents the amount of football betting duty that the conductor would be liable to pay if the accounting day were the last day of that charging period; Y represents the total amount of provisional payments that the conductor has made for that charging period. (3) In making a provisional payment, the conductor shall submit to the Collector a calculation sheet, in the specified form, showing how the amount being paid has been arrived at. (4) The Collector shall apply all provisional payments made by a football betting conductor for a charging period towards settlement of the football betting duty that is payable by the conductor for that charging period. (5) A football betting conductor that, without reasonable excuse, contravenes this section commits an offence and is liable to a fine at level 3. (6) In this section, accounting day ( 結算日 ) means any day within a charging period that is the last day of a month. 6O. Demand for provisional payment (1) If a football betting conductor has not made a provisional payment in full, the Collector may, by notice in writing given to the conductor, demand payment of the unpaid amount. (2) The notice shall specify the manner in which and the date on or before which the amount shall be paid. (3) If the conductor fails to make payment in accordance with the notice, the Government may recover the unpaid amount as a civil debt. 6P. Assessment of net stake receipts (1) As soon as practicable after the end of a charging period, the Collector shall assess the net stake receipts that were derived from the conduct of authorized betting on football matches by a football betting conductor in respect of that charging period. (2) The assessment may only be made within 6 years after the end of that charging period. (3) If, based on the assessment, the amount of the football betting duty payable by the football betting conductor exceeds the total amount of the provisional payments that have been made by the conductor, the conductor must pay the difference to the Collector in accordance with the notice of assessment. (Replaced 38 of 2025 s. 14 ) (3A) If, based on the assessment, the total amount of the provisional payments that have been made by the football betting conductor exceeds the amount of the football betting duty payable by the conductor, the Collector must refund the difference to the conductor. (Added 38 of 2025 s. 14 ) (4) As soon as practicable after making the assessment, the Collector shall give the conductor a notice of assessment in writing, specifying— (a) the amount of net stake receipts as assessed; (b) the amount of football betting duty that is payable; (c) the total amount of provisional payments that have been made; (d) if subsection (3) applies— (i) the amount that the conductor must pay; and (ii) the way in which and the date by which the amount must be paid; and (Replaced 38 of 2025 s. 14 ) (e) if subsection (3A) applies—the amount that the Collector must refund. (Replaced 38 of 2025 s. 14 ) 6Q. Additional assessment (1) Despite having given a notice of assessment to a football betting conductor in relation to a charging period, if the Collector reasonably believes that the net stake receipts that were derived from the conduct of authorized betting on football matches by the conductor in respect of that charging period exceed the amount of net stake receipts as specified in the notice, the Collector shall make an additional assessment of the net stake receipts that were derived in respect of that charging period. (2) The additional assessment may only be made within 6 years after the end of that charging period. (3) As soon as practicable after making the additional assessment, the Collector shall give the conductor a notice of additional assessment in writing, specifying— (a) the amount of net stake receipts as additionally assessed; and (b) the amount of additional football betting duty that is payable by the conductor, and the manner in which and the date on or before which the amount shall be paid. (4) The conductor shall make payment to the Collector in accordance with the notice of additional assessment. 6R. Surcharges (1) If a notice of assessment, notice of additional assessment or notice of payment given under section 6T(4) specifies that a football betting conductor shall pay an amount on or before a date, the Collector may, by notice in writing given to the conductor, demand the conductor to pay— (a) a surcharge if that amount is not fully paid on or before that date; and (b) a further surcharge if that amount is not fully paid at the end of 6 months after that date. (2) The surcharge shall not exceed 5% of the unpaid part of the amount referred to in subsection (1). (3) The further surcharge shall not exceed 10% of the total of— (a) the unpaid part of the amount referred to in subsection (1); and (b) if the surcharge is not fully paid at the end of the 6 months referred to in subsection (1)(b) , the unpaid part of the surcharge. (4) The Government may recover any surcharge or further surcharge as a civil debt. 6S. Appeal against assessment and holding over of duty (1) A football betting conductor that is dissatisfied with an assessment under section 6P , or an additional assessment under section 6Q , may appeal against the assessment concerned to the District Court. (2) The appeal may only be made within 1 month after the date on which the notice of assessment or notice of additional assessment, as the case may be, is given. (3) The appeal shall be made by giving a notice of appeal in writing to the Registrar of the Court and the Collector. (4) As soon as practicable after receiving the notice of appeal, the Collector shall— (a) state and sign a case, setting out— (i) a summary of the facts that are relevant to the assessment concerned; and (ii) how the assessment concerned has been made; and (b) serve a copy of the case on the conductor, the Registrar and the Secretary for Justice. (5) The appeal may only be set down for hearing within 14 days after copies of the case have been served in accordance with subsection (4)(b) . (6) The Court shall determine the appeal by rescinding, varying or confirming the assessment concerned, and may make such other orders as the Court thinks fit. (7) If, according to the assessment concerned, an amount is payable by the conductor under section 6P or 6Q , as the case may be— (a) the making of the appeal does not affect the conductor’s obligation to pay the amount; and (b) the Collector may, at the request of the conductor and subject to any conditions that the Collector may impose, order that payment of the whole or part of the amount be held over pending the final determination of the appeal. 6T. Provisions relating to holding over (1) This section applies if— (a) a notice of assessment or notice of additional assessment, as the case may be, specifies that a football betting conductor shall pay an amount on or before a date; and (b) the Collector has ordered under section 6S(7)(b) that payment of the whole or part of the amount be held over pending the final determination of an appeal made by the conductor. (2) If the conductor withdraws the appeal, the conductor shall pay the Collector— (a) the amount that was held over; and (b) interest on the amount that was held over, calculated at the specified rate from the date referred to in subsection (1)(a) to the date on which the appeal is withdrawn. (3) If, according to the final determination of the appeal, the amount that is payable by the conductor under the assessment concerned exceeds the amount that was not held over, the conductor shall pay the Collector— (a) the difference between the 2 amounts; and (b) interest on so much of the amount that is held over and becomes payable as a result of the final determination, calculated at the specified rate from the date referred to in subsection (1)(a) to the date on which the appeal is finally determined. (4) Where an amount is payable by the conductor under subsection (2) or (3)— (a) the Collector shall give the conductor a notice of payment in writing, specifying— (i) the total amount that is payable; and (ii) the manner in which and the date on or before which the amount shall be paid; and (b) the conductor shall pay the amount in accordance with the notice given under paragraph (a). (5) The Government may recover any interest payable under this section as a civil debt. (6) In this section, specified rate ( 指明利率 ) means the rate determined by the Chief Justice by order under section 50(1)(b) of the District Court Ordinance ( Cap. 336 ). 6U. Conductors may bet for hedging purpose (1) A football betting conductor may place a bet on a football match if— (a) the conductor has, in accordance with this Ordinance and the conditions of the conductor’s licence, accepted bets on the match; (b) the bet placed by the conductor is received by a person in a place outside Hong Kong in accordance with the law of that place; and (c) the bet is placed by the conductor for the only purpose of hedging against exposure to the risk of loss that the conductor may suffer from the conduct of betting on the match. (2) For the avoidance of doubt, it is declared that— (a) a football betting conductor that places a bet under subsection (1) does not commit any offence under section 8 of the Gambling Ordinance ( Cap. 148 ); and (b) the person who receives the bet does not commit any offence under section 7 of that Ordinance. 6V. Hedging policies (1) A football betting conductor may submit to the Collector for approval a hedging policy, setting out— (a) the factors that the conductor undertakes to consider; and (b) the procedure that the conductor undertakes to follow, in placing a bet under section 6U . (2) As soon as practicable after receiving a policy submitted under subsection (1), the Collector shall, by notice in writing given to the conductor, inform the conductor if the policy is approved or not approved. (3) A notice under subsection (2) shall, if the Collector approves the policy, specify the date on which the approval is to take effect. (4) At any time after approving a policy, the Collector may, by notice in writing given to the conductor, withdraw the approval of the whole policy, or of any part of the policy. (5) A notice under subsection (4) shall specify the date on which the withdrawal is to take effect. (6) For the purpose of section 6L , if a football betting conductor claims that a bet was placed under section 6U , and— (a) the conductor does not have a hedging policy that is approved under this section; or (b) in relation to the placing of the bet, the Collector reasonably believes that the conductor has failed, in a material manner, to comply with the hedging policy that is approved under this section, the bet shall not be taken as a hedging bet. 6W. Restrictions relating to football betting tickets (1) A person shall not make, print, issue, sell or offer to sell a football betting ticket unless the person is— (a) a football betting conductor; or (b) so acting on behalf of a football betting conductor. (2) A person who contravenes subsection (1) commits an offence and is liable to a fine at level 5. (3) In this section, football betting ticket ( 足球投注彩票 ) means a ticket that is used or to be used to— (a) record the placing of a bet with a football betting conductor; and (b) claim any dividend that is payable on the bet. Division 3A Special football betting duty ( Division 3A added 15 of 2023 s. 3 ) 6WA. Interpretation of Division 3A In this Division— accounting day ( 結算日 ), in relation to a dutiable period, means 15 March of that period; buffer period ( 緩衝期 ), in relation to a dutiable period, means the period beginning on 16 March and ending on 31 March of that period; dutiable period ( 徵稅期 ) means— (a) a period beginning on 1 April 2023 and ending on 31 March 2024; (b) a period beginning on 1 April 2024 and ending on 31 March 2025; (c) a period beginning on 1 April 2025 and ending on 31 March 2026; (d) a period beginning on 1 April 2026 and ending on 31 March 2027; or (e) a period beginning on 1 April 2027 and ending on 31 March 2028; licence ( 牌照 ) means a licence issued under section 6I ; provisional payment ( 暫繳付款 ) means the payment that a football betting conductor is required to make under section 6WC or 6WD ; special football betting duty ( 額外足球博彩稅 ) means the duty charged under section 6WB . 6WB. Special football betting duty (1) This section applies to a football betting conductor to whom a licence is issued. (2) For each dutiable period, a duty of $2,400,000,000 is charged on the conductor. (3) If the licence is not in force during part of a dutiable period, the duty charged for the dutiable period is to be reduced proportionately. (4) If— (a) 2 or more licences are issued to the conductor in respect of a dutiable period; and (b) the licences are in force at different times during the dutiable period, the duty charged for the dutiable period is to be calculated by reference to the aggregate number of days during which the licences are in force during the dutiable period. 6WC. Provisional payment: where licence in force on accounting day (1) This section applies if a licence issued to a football betting conductor is in force on the accounting day of a dutiable period. (2) The conductor must, not later than the accounting day, make a payment ( provisional payment ) to the Collector. (3) The amount of provisional payment is calculated by using the following formula— amount of provisional payment = number of effective days × daily rate where— (a) the number of effective days is the aggregate of the following— (i) the nu