Sports betting is growing in popularity in India. But India is a cricket crazy nation, and it is quite natural that around 80% of sports betting in India is on Cricket.
Worldwide, the sports betting market was valued at 12.5 Billion US in 2019, with a projected growth of 17.5 Billion US by 2025. In 2017, land-based sports betting segments accounted for the highest share in the global sports betting market, but economists predict that online gambling platforms will exceed brick and mortar establishments.
According to research, more than 60% of sports bets placed globally are on the black market. This shows that the underground betting market would continue to operate even if India were to legalize sports betting. Having said that, the Indian sports betting industry, which exists solely online, is big business despite legality issues which are mostly a grey area.
FICCI estimated the Indian Market at Rs. 300,000 crores. Given the size of the Market, FICCI believed that, if legalized, the Government could gain up to Rs: 12000 crores in Tax @ the rate of 12%.
In a representation to the Government of India, to legalize betting, the organization first answered the question. “Is betting on sport contrary to its moral code and is betting on sports really illegal”, thus
“Betting and gambling is under the purview of state legislation, betting is prohibited on a game of chance and not on a game of skill. Horse racing and rummy have been held to be games of skill hence betting on them is legal. Sport is predominantly a game of skill and chance plays a very small aspect in the game. The ability of the players, the form they are in and the conditions of play are important factors determining the result of a match.” and then went on to detail three approaches to the issue of sports betting:
- Prohibit it as a vice that should be curtailed.
- Accept that it is inevitable, and it takes place and seek to regulate it.
- Encourage it as a means of generating state revenue and economic growth.
In 2017, land-based sports betting segments accounted for the highest share in the global sports betting market, but economists predict that online gambling platforms will exceed brick and mortar establishments.
Either way, the online sports betting industry is on the upswing, and the government can easily take a slice of it by legalizing it though as of today it falls into a grey area of legislation.
There are many online gaming platforms in India. A recent report published by the Federation of Indian Fantasy Sports along with the global consulting firm KPMG pegged the Indian fantasy sports market at 90 million users. Almost 20 percent of these users pay for playing fantasy games and a third of the users are players on multiple platforms. The user base itself has shown a cumulative average growth rate (CAGR) of 212 percent over the last four years, as per the report.
Online Betting and gaming in India peaked with the IPL and is going places with the India Australia Series. But other sports too are out there in the Indian space but will take a while to compete with Cricket. Many of these sports betting sites offer online betting deposit bonuses. Sites like 20bet.com ever offer 100% up to 100€ even first deposit bonuses.
The coronavirus pandemic and even the restart of events like the IPL have spurred a growth in the user base like it has for all online content-oriented industries. This sunrise industry has also been a major destination of investor funding in recent years.
Almost 400+ gaming start-ups in India are currently working in this space, having cumulatively attracted approximately $448 million in investor funding between 2014 and 2020, according to DataLabs by Inc42+.
The online betting system if regulated rather than controlled would be a step in the right direction for a nation that is looking to be self-reliant. 83% of respondents in the FICCI Survey said regulating sports betting with proper laws is better than banning it.
The Government could perhaps also consider limiting the sports events on which money can be bet. An annual list could be drawn up of all the events the Government wants to promote, and these could be notified. This could give an impetus to sports that are not watched many by spectators in India.
