By: John Braham
Since 2016, there has been an increase in gambling activity in India. This has led to the growth of the gambling sector in India. This growth is due to many factors including the fact that there are many internet users in India and the widespread adoption of digital payment methods in India. There is speculation that the Indian gambling industry will hit the $1 billion mark by 2021 based on past growth.
Examples of Foreign Investments in India’s Gambling Markets
Many companies are investing in games in India because the gambling industry is becoming a gold mine. These investors include top companies from around the world. One of them is RockStar Game, a US-based gaming company. Rockstar recently acquired an Indian video game development company in Bengaluru, Dhruva Interactive, in 2019. Another American company, Sequoia Capital, has made various investments with Indian gaming companies such as Octro and Moonfrog La, among others.
Investors also include top Chinese companies. Alibaba Groups, an AG Tech Holdings in Hong Kong, partnered with PayTM, an e-commerce and payments company, in 2018 to create a joint venture called Gamepind in 2018. Gamepind is a platform that hosts popular sports games. In early 2017, another Chinese company, YouZu Interactive, entered the Indian gaming market by collaborating with gaming studios to develop local games.
French gaming company Ubisoft also has gaming development studios in India. The first studio Ubisoft Studio is located in Pune, the other in Mumbai.
Fantasy sports companies are not left out. Approximately $4 million has been invested in Indian online fantasy company Ballebaaz by a Singapore-based organization. Dream II also received a $60 million investment from Steadview Capital. Molale Premier League saw many investors like Go Venture, Sequoia Capital, Times Internet and many others.
Localization is key
As the gaming industry continues to flourish, gaming companies and studios are beginning to recognize the need to create games that cater to local needs. They do this by developing games that feature special events coinciding with major Indian festivals such as Delhi, Eid al-Fitr, Onam, Pongal, Holi and many others. They have also created options to play games in Indian dialects like Telugu, Marathi, Gujarati, Bangla and many more. Popular games like .
Also, Teen Patti, one of the most popular games in India, was founded by many foreign companies to develop it to meet players’ needs. You can find many casinos where you can even play in Hindi. A very large number of these casinos are controlled by foreign companies, but the games are developed by Indians.
New regulations are expected to be put in place for online gambling
In a recent hearing, taking into account the views of all stakeholders. Before that, many stakeholders started to consider whether online gambling, especially games of skill, should be properly regulated by law.
This isn’t the first time a court has called for regulation of online gambling. And it also points to the need to examine the pros and cons of unregulated online gambling without making emotional judgments.
There will certainly be many benefits to providing online gambling regulations. This includes tax revenue for state governments, more foreign investment and job opportunities. Introducing regulation for online gambling could also help India become a global authority in the gambling world.
The possible negative effects must also be considered. For example, the possibility of addiction, loss of interest in other productive or social activities, and wasting money unnecessarily can all be negative effects of online gambling.
However, if properly implemented, the regulations could provide for binding time and money limits. This will protect the vulnerable players such as students and minors while ensuring the country enjoys the benefits of the regulation.
According to the Federation of Indian Chambers of Commerce and Industry (FICCI), online gaming in India is expected to grow faster than the global online gaming industry. If this speculation is to be true, online gambling must be legalized quickly. This will even help to encourage more investment in the gambling markets and thereby lead to higher revenues for the Indian state.
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