Closed circuit. There are only 1500 horses total or something. That, along with huge pools and most of the public betting with non-scientific methods (a data-based approach is antithetical to the general culture) and you've got an exploitable situation. Eventually, there were many competing computer teams, pretty much all of them created by foreigners (non-Chinese). The Hong Kong Jockey Club did not like the computer teams, and did their best to shut them out...
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