South China Morning Post again interviewed Mr Gordon Chan about whether prediction markets are financial products or illegal gambling.
In a second interview with the South China Morning Post on this issue, Mr Gordon Chan discussed the rise of online prediction market platforms and the complex legal interplay between the Securities and Futures Ordinance and the Gambling Ordinance in Hong Kong.
A local SFC licenced trading platform now offered a prediction market platform, prompting a discussion on the interaction between the Securities and Futures Ordinance and the Gambling Ordinance.
Under the Gambling Ordinance, section 29 made reference to the Securities and Futures Ordinance, and excluded certain financial products from being considered gambling. On the other hand, “financial products” are defined under the Schedule 1 of the Securities and Futures Ordinance.
Hence, the uncertainty continues. There is no easy answer whether participating in prediction markets is illegal gambling.
Gordon Chan, Esq
Barrister-at-law, Archbold Hong Kong Editor on Public Health, and Member of the Bar Association's Committee on Criminal Law and Procedure. Specialised in medical, technology and criminal law.
