BEIJING - CHINA has carried out horse betting on a trial basis, signalling an ambition to restore a form of gambling that was outlawed by the Communists six decades ago, state media reported on Sunday.

The test run took place on Saturday at the China Speed Horse Race Open in the central Chinese city of Wuhan, where spectators could bet on four races, newswires said.

Each spectator was allowed to place two bets for free, and winners were given lottery tickets that gave them a chance of winning minor money prizes, according to the source.

Mr Qin Zunwen, an expert in horse race betting from the Wuhan-based Hubei Provincial Academy of Social Sciences, said once a nationwide network is set up, the industry could create three million jobs.

He estimated that annual lottery sales could reach 100 billion yuan (S$22.3 billion), yielding 40 billion yuan in tax revenue per year.

'Offering a legal venue to bet on horse races could drive out illegal online gambling,' he said.

It could also help cut down on underground and overseas gambling, he said according to Xinhua.

Wuhan was China's horse racing capital from the early 20th century, but it lost that role after the Communists assumed power in 1949, banning all types of gambling. -- AFP