Caution urged in assessing prediction market risks

Lawmakers on Tuesday called on the government to assess the potential risks from prediction markets on other gambling activities in the city, after plans to legalise basketball betting were put on hold. Officials, in their decision to suspend plans to launch basketball betting, had noted that the rapid development of prediction markets had brought uncertainty and that further studies were needed. New People's Party lawmaker Adrian Ho said authorities should be cautious when handling gaming-related issues. "Before we know anything more about prediction markets, nothing should be done with introducing any new gaming, gambling items into the market," Ho told RTHK. "For the two existing [legalised] gaming items, which are horse racing and football betting, we need to keep a strict review... I would push for something that is much more extensive, due diligence, a deeper look into what effects [prediction markets] might have [on] any existing gambling items." Fellow lawmaker Nixie Lam, of the DAB, said the move was "responsible" to better protect the public amid uncertainties. "There's been a rapid growth in emerging markets, which has brought new uncertainties and regulatory gaps that the law itself is unable to cover," Lam said. She added that the government should not rush to introduce legalised basketball betting. Edited by Aaron Tam