India’s population is well over a billion people and has an addressable market (aged between 18 to 64 years old) of 826 million people. Also, current active e-commerce penetration in India stands at 28%, and while this is a low figure globally, the sheer numbers in absolute terms our substantial. According to research, around 23 million people in India have the financial capacity to gamble online. This number is set to grow as India’s middle class continues its upward trajectory.
India is a new market for gaming companies. As betting companies are looking to increase revenues, they look beyond traditional and established markets to greenfield geographies. India is not alone. Gaming companies are also looking at Latin America, for example, Brazil, Peru, Chile, and Columbia, along with European jurisdiction like Portugal and Croatia. India is an untapped market. In this regard, ESSA (Sports Betting Integrity), the nonprofit association that represents the interests of sports betting integrity of operators in the world, said that “as the Law Commission reports, the ban has been ineffective and has resulted in widespread unlicensed bets. The only way to address that and the essential integrity issues that it entails is to enact a clear regulatory framework for betting. Such action will undoubtedly have considerable economic and integrity impacts. ” For example, in 2019, the UKGC fined Several leading gambling companies for failure to adhere to, and some would say unnecessarily strict compliance guidelines. For instance, silver bond enterprises who run Park Lane club in Mayfair will find 1.8 million pounds due to irregularities in social responsibility and money laundering failures. Other restrictions include the UK, including banning credit cards as a payment method. In Germany, restricting the amount players can wager during the month and in Sweden, stopping all forms of VIP rewards and bonuses.
However, a recent 145-page report from the Indian Law Commission (LCI) recommended licensing and regulation of gambling across the country, as a way to curb the increase in online betting activity. “Some unconfirmed reports have put the gaming market in India at $ 150 billion per year. Most of these are illegal games, and are controlled by crime unions and do not generate revenue for the government,” Jaydeep explained. Chakravartty, Commercial Director of Ingenuity Gaming. “Each market is different, and it is the attention to local details that will help any company succeed in India. International gaming companies should explore the Indian market, understand the requirements, and be ready to make a move when the market opens, “he added.
The final factor, which is leading to growth in the online gambling industry in India is the increasing regulation in Europe. That may seem to be an obscure reason, but the reality is the UK, Sweden, Italy, and Germany regulators are all placing heavy restrictions on gambling companies. Many companies are looking for more relaxed markets in which to operate. The five primary factors are: Let’s take a look at each one of these factors in more detail.