In September last year Delta Corp, India’s largest hospitality and gaming company, acquired Adda52, also a top-ranking company when it comes to the Indian online gaming market.
PokerStars, the biggest online poker company, owned by Canada-based Stars Group, has partnered with Sachar Gaming, a unit of the Sugal and Damani Group, for a site exclusively for Indian players, which became operational earlier this year. While, UK-based Stride Gaming acquired a 51% stake in Rummy Passion, an Indian company based out of Chandigarh in January.
“The growth seen in the business has surpassed the growth seen prior to the merger significantly,” Mohit Agarwal, co-founder of Adda52 told AG Brief. “All the ingredients of explosive growth in gaming are present in the country – be it the demographics, the internet penetration or the smartphone penetration. The digital payment infrastructure in the country is superb. Once the advertising framework for real money gaming matures, the business should see significant growth,” he added.
According to Delta Corp, the current size of the online gambling industry is about $100-$125 million a year. However, it’s the fastest growing sector of the Indian market, which is estimated at $60 billion overall, if illegal operations are also considered.
Casino gambling is banned apart from Goa, Sikkim and the union territory of Daman, although skill-based gaming is not. That said, the legality of games such as fantasy sports, rummy and poker, has been challenged in various states across the country and the regulatory sands shift frequently.
As far as sports betting is concerned, Ranjana Adhikari, a lawyer with Nishith Desai Associates, said that it does “pass muster” when it comes to being a game of skill. “It (sports betting) is very similar to horse racing. Since the Supreme Court believes horse-racing is legal, sports betting should also be legal. But in India, the problem is moral sanctions, the taboo of being immoral and being perceived as illegal.”
Agarwal added that a recent report from the Law Commission of India about regulating gambling instead of banning it outright has opened up the situation legally. “The recent law commission report talks about regulating games of skill as well. This should be a welcome move. I feel that the actual implementation of the LCI recommendation will take a few years.
The Law Commission report generated excitement in India’s gaming circles, especially with regards to sports betting. However, the law body subsequently put out a clarification stating it had not recommended legalizing gaming at present, but said it may ultimately be the only way to stamp out rampant illegal gambling.
Source: GMB / AG Brief
