The online gaming sector in India generated $174m in revenues in 2020, compared with $97.2m in 2019, but further rapid growth depends on the industry persuading officials in some southern Indian states to overturn bans on betting sites.
Background
- Lockdowns and restrictions imposed because of the COVID-19 pandemic are driving demand for online gaming in India, where the market of 300 million is expected to grow to 440 million by 2022.
- However, late last year the southern states of Tamil Nadu and Andhra Pradesh banned online gaming firms, especially platforms offering rummy, poker and fantasy sports. The government in Karnataka is also weighing up whether to introduce a ban.
Next steps
- The gaming industry is pushing for regulation as an alternative to an outright ban and expects to spend 2021 engaging with officialdom.
- Industry insiders believe future growth will depend on the government providing a favourable and predictable regulatory regime for both existing players and foreign investors.
Key quote
“The biggest challenge for gaming firms this year will continue to be the grey zone around regulations. If there is clarity around this, we see substantial growth in the sector both from an investment as well as a player perspective” – Sameer Barde, CEO of The Online Rummy Federation.
Sourced from Economic Times
