When Hong Kong was returned to Communist China in 1997, the new rulers were left with several problematic British institutions, including the 112 year old Royal Hong Kong Jockey Club. Horse racing and gambling have been illegal in China since the communist takeover in 1949. The Hong Kong Jockey Club is the second largest business in Hong Kong. The club takes in $10.4 billion in annual betting revenues and has donated funding to build parks, universities, and medical facilities. Taxes from the club account for 10% of the government's revenue. Macau, scheduled to be handed over to China at the end of 1999, has created similiar problems for the government in Beijing. Home to nine very lucrative casinos and the Happy Valley Racecourse, these institutions account for about 40% of the government's revenues. Gambling, officially a capitalist evil, is expected to be maintained and nurtured by the Chinese government in their newly accquired territories, but with a few adjustments. They have appointed an ethnic Chinese as the chief executive of the Hong Kong Jockey Club and are expected to raise the betting tax so that more of the profit is under their control.