It was the first time the government allowed the practice since deeming horse bets illegal in 1949, when the People's Republic of China was founded.

Technically, nobody paid to bet on Saturday's races, but a milestone trial run of the future venture took place during the Testing Event of China Speed Horse Race Open in Wuhan, capital of central Hubei Province.

Of the four races held at the Orient Lucky City racecourse, spectators were allowed to place two bets for free. If someone won, he or she would get 20 instant scratch-off tickets issued by the local sports lottery administration.

Prices for betting on races in the future have not yet been set as this was merely a government trial run.

"This is the first experiment for China to commercialize horse racing," said Wang Shenshun, deputy head of the Wuhan Municipal Sports Administration. "For the first time organizers offer prizes for every horse race, individuals or groups can buy horses, become owners and share prizes."

A spectator Zhu Ping, a teacher from the Wuhan University of Technology, won 12 yuan from scratch-off tickets she got at the race.

"It's unimportant for me to earn money. The point is that such an event boosts the interest of spectators and encourages public participation," Zhu said.

In preparation for the trial run, the largest jumbotron in China, 480 square meters, was set up at the racecourse on Nov. 15 to help spectators watch races and their betting results.

"The equipment and supporting facilities in the racecourse is not inferior to those in Hong Kong," said Wang Wenjin, assistant to the general manger of the Orient Lucky City Club. "The only difference is the course in Hong Kong is made of grass while the one in Wuhan is sand."

In the early 1900s, Wuhan was the country's center for horse racing. The sport was banned on the Chinese mainland in 1949.

It reappeared in the early 1990s after national races were organized and jockey clubs set up. Horse betting was still illegal at the time.

Wuhan started to study the feasibility of horse race betting in2005.The central government approved regular races this January, it later agreed to introduce betting on a trial basis.

Orient Lucky City covers more than 1 million square meters and is the biggest horse breeding base in the country where 2,000 horses are raised. The racecourse seats 30,000 spectators.

Saturday's trial run took place alongside other horse racing events being held during the 6th China Wuhan International Horse Racing Festival which runs between Nov. 26 and 30.

Qin Zunwen, an expert in horse race betting from the Hubei Provincial Academy of Social Sciences, said once a nationwide betting network is set up, 3 million jobs could be created in the industry.

He added that annual lottery sales could reach a staggering 100billion yuan, yielding 40 billion yuan in tax revenue per year.

"Offering a legal venue to bet on horse races could drive out illegal online gambling," Qin said. He added it could also help cut down on underground and overseas gambling.

Most revenue from bets will be returned to holders of winning tickets or will be spent on public welfare projects and the horse racing industry, Qin said.

According to Wang, Saturday's horse race was a comprehensive test for the racecourse, betting rules and the program's organization. Wang said Saturday went smoothly.

"The test run is preparation for an official event in the future," he said. "If approved, the number of China's horse races, with betting, will be upgraded to regular events being held once or twice a week."

Wang was unable to give an estimate about when an official event will be introduced.