There’s no doubt that the online gambling industry is continuing to grow across the globe, from mature markets such as the UK to burgeoning and potentially huge entities such as North America.
The Indian market is also expanding at a considerable pace, despite the fact that a fundamental lack of a regulatory framework is causing the industry to miss out on approximately $1.5 billion in lost revenue overall.
You can see a comprehensive list of online casinos in India, but just how legal is the practice in this country and will the market ultimately realise its full potential?
The Basics – Is Online Gambling Legal in India?
India adopts a federal model of government, in which all forms of gambling are regulated at the state level.
This means that each of the nation’s 28 states has a different approach to legalising and regulating gambling activities, with just three (Goa, Daman and Sikkim) having officially made brick-and-mortar casino gameplay legal.
However, the landscape for iGaming is considerably more complex, and this is thanks largely to the relatively archaic legislation that exists in India.
More specifically, gambling in India is subject to the Public Gaming Act of 1887, which obviously makes absolutely no provision for online gambling or wagering through digital and mobile channels.
So, although the existing legislation prohibits operators from within the boundaries of India from forming an online casino platform and makes no provision for domestic licensing, there’s nothing to prevent natives from accessing overseas gambling brands online.
This means that international operators that have been licensed by a reputable body such as the UK Gambling Commission (UKGC) and the Malta Gaming Authority can legally target Indian players online, creating a broad and competitive market for players that’s also inherently safe.
This includes operators such as Betway and Royal Panda, so it’s definitely capable of capturing the attention of players in every state and jurisdiction.
Is There a Demand for Online Gambling in India?
Given the legality of online gambling in India, the question that remains is whether there’s a demand for this practice and its various verticals in the region?
Certainly, the fact that the Indian government is missing out on an estimated $1.5 billion in tax revenue but not regulating iGaming suggests that prominent levels of demand do exist, with this only likely to increase further in the near, medium and longer term.
Certainly, the coronavirus pandemic has changed the outlook and behaviour of gamblers in the region, forcing many to transition online and seek out international operators with a reputation for excellence, safety and responsible gambling.
In this respect, many will argue that Covid-19 has simply exacerbated an existing trend and accelerated the rate at which gamblers transition online, especially in an age where Internet and mobile penetration continues to increase.
During the last two decades, in particular, the number of households to have registered for an Internet connection has increased exponentially, and at the beginning of 2018, there were approximately 566 million Internet users located nationwide.
This number had risen to 627 million by the end of the year, while it experienced a further hike to an impressive 730 million by the time 2020 had come to a close.
As a developing economy, India is also experiencing a sharp and continual rise in mobile usage across the board.
In fact, the smartphone penetration rate in the country peaked at around 28% by the end of 2018, while the total number of mobile users is expected to reach more than 973 million by 2022.
When you consider these figures in unison, it’s clear that players are increasingly inclined to wager both online and on the move, creating a huge appetite for online operators based overseas.
The Last Word
Given the rising demand for iGaming verticals and the success that international operators have had within the Indian marketplace, it’s clear that the growth of online casino gameplay in the region is more than sustainable.
However, it remains unclear whether state authorities in India will look to update their legislation to regulate online gambling, with a view to granting domestic licenses and earning tax revenues directly from the marketplace.
This certainly wouldn’t come as much as a surprise to market commentators or stakeholders, although creating the necessary regulatory framework could well take an extended period of time.