In 2023, India’s online sports betting market is expected to make around US $1.70 bn.
Recent headlines have frequently featured news reports related to the Mahadev betting app, which is currently under investigation by the Enforcement Directorate (ED) for alleged money laundering cases amounting to 5,000 crores. The ED’s scrutiny extends from online betting operators to celebrities and politicians, suggesting that Mahadev Book operates as a syndicate encompassing various online gaming websites and apps.
Headquartered in the UAE, it is implicated in illicit betting across live games such as cricket, tennis, badminton, poker, and card games. While Mahadev promotes itself as a gaming app, ongoing investigations reveal substantial financial irregularities. The central question remains: Is online betting on the rise in India, and what do the associated regulations and laws suggest? Let’s explore.
What’s Happening?
Several significant changes have been observed in the online betting landscape in India. Particularly, there has been a substantial growth in real-money gaming, reaching into the realm of skill-based betting activities.
The proliferation of smartphones and the internet has contributed to the rising popularity of online gaming among the general public. In recent years, the excitement for betting has extended beyond gaming to activities like poker and cricket, engaging millions of individuals.
Companies Experience Unprecedented Growth
Real-money gaming has witnessed significant growth in India post-COVID-19 pandemic. According to ET Prime, an analysis of 100 companies in real-money gaming revealed a remarkable surge in revenue between FY20 and FY21. This trend has attracted investors to the sector.
Maple Capital Advisors’ report suggests that Indian gaming companies raised USD350 million in the six years leading up to mid-2020. Furthermore, between August 2020 and January 2021, they raised USD544 million, doubling in 2022.
In 2023, India’s online sports betting market is expected to make around US $1.70 bn.
Future of Online Sports Betting Market
The outlook report indicates that the regulatory landscape for online betting in India is still evolving and complex. While some states have embraced online betting as a legitimate source of income, others have imposed bans. The legality of online casino gaming for Indians varies across states. Different states maintain diverse perspectives on online betting, making the industry’s trajectory uncertain.
As for real-money gaming, in 2017, the Punjab and Haryana High Court classified online fantasy games as skill-based, distinguishing them from the category of gambling. Subsequently, numerous apps proliferated across India.
Recently, the GST Council imposed a 28% GST on online gaming and betting.
What’s Next?
According to CNBC TV18, there is a possibility of increased illegal offshore betting due to the new tax policy. The estimated size of this illicit offshore betting market is around 8,20,000 crores, and there is a potential 30% annual increase after the implementation of the new GST system, posing a risk of revenue loss for the government.
Experts anticipate that India’s online gambling market will grow at an annual rate of 8.59% from 2023 to 2027. The estimate also suggests that by 2027, there will be approximately 12.17 million users in India’s online gambling market.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
*The article is for information purposes only. This is not an investment advice.
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