Online Gambling Market in India & Its Future : A Comprehensive Review
Currently, the population of India stands at 1.39 billion. Out of which, 560 million people use the Internet every day. The mammoth number of internet users in India makes this country the second most significant internet consumer in the world after China.
The pandemic has made a huge impact on the online gambling market in India. Every year, more players join the online gambling platform. In fact, numbers show that investment in online gambling is growing at a steady rate of 20% every year.
Despite several restrictions, it is estimated that by the end of 2022, the gambling market in India will grow at a whopping CAGR of 40% to $2.8 billion.
[Data Source: Frost & Sullivan, Deloitte]
The primary cause behind this fast and steady growth can be deemed to be the accessibility of the Internet in remote corners of the country. This has eventually attracted a diverse range of players.
Is Online Gambling Legal in India?
Witnessing the sudden growth in demand for online gambling in India, offshore investors have started investing in the online gambling market in India. Moreover, India has a long history of gambling, and the roots can be traced way back to the 15th century. On the contrary, any form of gambling still remains illegal in India.
Currently, India has exempted three states under the Public Gambling Act of 1976. Only Goa, Sikkim, and Daman are allowed to run online casinos in India. Though, the gates of the casinos are only open to visitors and tourists. Locals are strictly forbidden to take part in casino games.
However, there is a loophole in the law. The laws around online gambling were made a lot early before the inception of the Internet in India. This means even though gambling is illegal in India, there is no law that can put you behind bars for playing online casinos.
Investors, being aware of the loophole, have seized the opportunity and extended their service to the southern part of Asia. India is the most populated country and has the most number of Internet users in the world after China. The numbers are lucrative enough for any venture to try their business in India.
What is the Future of the Online Gambling Market in India?
The future of the Indian gambling industry is promising for players and investors. There are two reasons behind the claim. One, the middle-class segment in the country is constantly growing, and the second is the rapidly developing internet infrastructure.
The number of families in India with a disposable annual income of $10,000 has risen twentyfold in the past twenty-five years. Currently, there are 760 million active smartphone users in India. According to a recent survey, India is expected to surpass China by 2027, both in terms of population and income.
India’s middle-class population always looks out for a quick way of making easy money. And online casinos are one of the most favorable places to hang out for these kinds of people.
Online Gambling Checks Out
Gambling is banned in India has always been a matter of regret as the newspapers highlighted a lottery winner whose life changed overnight. But the lottery is way different from gambling. In the lottery, you need zero skills and 100% luck, while in gambling, you need an equal share of both.
Eventually, when the offshore gambling companies started extending their venture to India, the people saw this as an opportunity to make easy money overnight. Moreover, 2020 has been a year of uncertainty and blues.
Millions lost their jobs, and quarantine made life too boring and dependent on the Internet. More Indians, who never used the Internet apart from using social media and entertainment channels, started exploring the other realms of the virtual world.
In 2020, India witnessed a 32% growth in mobile users from the rural parts of the country with access to the Internet. Traditional betting games were still played in the corner of rural India. Now, when they gained access to the Internet and discovered online casinos where you can find a range of gambling games in the palm of your hand and bets can be placed with the tip of your finger, the popularity skyrocketed.
In 2019, the Indian gambling industry generated a revenue of $800 million. In 2021, it generated $1 billion. Obviously, this shows the capability of the industry along with its potential to grow rapidly. By the end of 2024, it is predicted to grow into a $13 billion industry with a CAGR of 41%.
So, going by the figures and numbers, it can be said that the future of online casinos in India will bring great benefits from multiple perspectives. Though the industry is still in the grey zone, it will not refrain people from reaping its benefits. Moreover, since it has been around for ages, it won’t be an alien concept for people, and neither will it be hard for people to get themselves acclimatized with the procedures.
If the online casino is regulated, illegal and improvised casinos will soon go out of fashion. However, strong regulations, awareness, and improvements need to be made around the industry to avoid spreading negativity. Though it is a way of making easy money, it should always be treated as a form of entertainment.
Nevertheless, nothing can stop the growth of the future of the online gambling market in India. The figures and numbers speak for themselves, don’t they?