Inside Asian Gaming

inside asian gaming May 2014 28 there’s a lot of judging and moral policing by society, if you can put it that way. But it’s a gaming-loving nation and it’s accepted. Whenever you come to India during festivities of Diwali and enjoy dinner with your Indian friends you’ll understand what I’m talking about—they like to play cards, play rummy, play teen patti [a kind of flush], for quite decent stakes, between families, between friends, at card parties or local clubs with card rooms. So, given that Indians love gambling so much, and that they own about 250 million smartphones with the number growing rapidly, can state or federal governments realistically control online gaming? Not with the current status quo. However, by regulating the market they certainly could. Actually, the payment side of things is what’s inhibiting growth in India. All the international operators are crazy about entering India, they all want to do business here because they see the potential, they know that it’s a gaming-loving nation, but the problem is the payment methods—how to integrate local payment methods legally. Indians like to play with cash in their hand. The banking system is developing and users still are not used to putting their credit card number online, they like to play with cash, and in many cases it is black money. There’s so much black money in India. The general public mentality still is: “I play with cash money, not with the money I have in the bank.” However, that is changing as banking system and broadband technology penetration is developing at amazing rates annually. Some international operators are already accepting bets from Indian customers. They’re leveraging current loopholes. The lack of regulation generates so many loopholes in the current system in India— there’s no law that actually prevents an Indian user from placing a bet online if the company is offshore. However, what might be of interest to the government at some point is that they are accepting rupees and transferring them to foreign currency, which there could be a legal issue about. In any case, international operators are very much interested in the Indian market, and most of them would like to see a regulatory process happening. You say those international groups are crazy about wanting to enter the market? There’s absolutely a lot of interest. Everybody wants to have a feasible and non-illegal way to enter the Indian market, and that’s another of the things I’m working on—trying to offer the international operators a way to enter the market while pushing for regulation. To clarify that, I believe that international operators are not being offered a business model and legal scenario that gives them enough confidence to enter the market. However, positioning your brand, positioning your intentions, is very important at this stage, and I feel they are missing a big opportunity. Of course, they have other jurisdictions to take care of, and operating in a grey market looks risky, especially if your company has a stock price to protect. However, my message to international operators is that there are ways to start positioning, and generate a strong business case, if you are looking at a long-term strategy. So that’s the logical starting point for those groups? Yes, and to do it they should start looking at somebody on the ground that can help them understand the market and start developing the right strategy. International operators can offer great insights and help to push for regulation as well. Human interaction in India is crucial, so someone on the ground is crucial. Also, in India you need a high level of patience to develop business. But if you have the right long-term strategy now regarding India I foresee huge opportunities in the years to come. I’m working closely with FICCI. They are one of the leading voices trying to bring this debate to the table and trying to regulate sports betting. During the India Gaming Summit in London we arranged a meeting with the UK Gambling Commission and the exchange of feedback was great. Exchange of information with current jurisdictions to get the know-how is crucial. And, of course, most international operators are already working with these jurisdictions. International operators should already be looking at India as a crucial piece of growth for their future and already have a strong long-term strategy for the market. It’s a gaming-loving nation and it’s accepted. They like to play cards, play rummy, play teen patti , for quite decent stakes, between families, between friends. danicareal / Flickr.com Insights