One of the most surprising things about the rise of the internet and constant WiFi connectivity has been how it has completely changed the way the younger generation spends their free time. You only have to look online at social media feeds and noticeboards to see that there are millions of people engaging in new hobbies, activities, and pastimes every single day.
Sports betting, while once something of a grey area that was only open in a select few ways, is now big business. The industry has taken over from traditional casino-style betting in many ways because it allows players from a wider range of backgrounds to play based on their interests.
To learn more about what’s been driving this seismic change, we need to start with the foundations.
How did we get here?
Back in 2008, Sikkim state passed the Sikkim Online Gambling (Regulation) Act and, in doing so, launched the very first online gambling platform to operate legally in India. In the less than 20 years since, it’s safe to say that online gambling has gone from a niche pursuit practiced only by those with a real passion for casinos to a popular mainstream activity.
Here are some of the key drivers that have caused this growth, with a particular focus on the rapid growth and expansion of sports betting:
- The rise in streaming services that allow friends from different parts of the country to watch the same sporting event at the same time with minimal investment
- The rise in gambling sponsors who are gaining attention and building their profile in major sporting events, leagues, and competitions
- The increase in mobile device ownership and the ability of sports leagues to cross-promote between interactive live broadcasts and social media
Put all of this together, and you’re left with a highly fertile landscape that provides plenty of opportunities in the years ahead.
Where are we going next?
The administration in Karnataka is currently looking at whether or not they will fully legalise all forms of betting, both online and in-person betting. This would open up even more of the growing population to the prospect of free and legal sports gambling that can be enjoyed from the palm of the hand.
What will be particularly important to note will be how Indians come to digest and consume their live sports as we enter the second half of the decade. With global players like Amazon and Netflix now entering the live sports market at pace, we may see something of a unification in terms of sports viewership. This will concentrate attention on major sporting spectacles, both within India and those watched by Indians that occur abroad. The result could be a critical mass of viewer numbers and time spent watching that makes sponsorship and partnership with sports betting platforms even more of an attractive proposition from a business point of view.
What do Indians bet on?
Football, F1, MMA, the IPL, and the PKL are all sports that attract millions of bets from Indian players and punters every week. While some sports are undoubtedly more popular than others, the fact that there is such a growing spread in terms of the sports players are betting on is the most notable thing.
There are several factors that determine whether or not a sizeable number of fans will bet on any given sport:
- The popularity of the sport in the first place and how many people are likely to know someone they can watch the game, race, or match with
- The degree to which in-game betting has been integrated into the live broadcast so that casual players can test themselves against the odds
- The manner in which placing a bet can be said to add extra drama and excitement to the live broadcast will also have an impact on participation rates
Indian culture has always been one that is full of energy and that has loved friendly competition and banter. Sports betting is one of the many natural extensions of this that the online world makes possible. That said, it is, of course, important to make sure playing habits are always healthy, sustainable, and ethical.
What’s driving the rapid growth?
Experts estimate that anywhere from 80-90% of all online sports bets are placed on cricket, with the IPL understandably the main focus for many fans. The result is that approximately 340 million Indians have placed a bet on cricket in the last 12 months alone. This makes Indian cricket betting not just the biggest market in the sport but one of the biggest in any country anywhere in the world.
Businesses are rapidly waking up to this reality and realising that there are many lucrative tie-ins and cross-promotions that they can build. While some more traditional, conservative fans may feel that the soul of the game is all that matters, the players and the teams are benefitting significantly from all of the additional sponsorship revenue that they are able to bring in.
What makes India a unique market?
It would be easy to say that the size of the market is what makes India unique, but this would miss the point somewhat. Cricket may be the dominant sport, and we don’t see that changing any time soon, but there are plenty of other sports that continue to make an impact. Hockey, tennis, badminton, and the traditional sport of kabaddi all attract the interest of millions of Indians every single week.
Many of these avid viewers and devoted fans then realise that they can place bets on more sports than just cricket. The interesting thing will be seeing when the critical mass of casual fans and gamblers is reached so that sponsorship becomes highly lucrative in these more niche sports.
How will the industry continue to grow?
Sports betting is already showing signs of moving into the rapidly growing world of eSports — a market that is predicted to grow by 14% in the next 12 months alone. While new sports are certainly one way for the industry to continue to grow, we also expect to see a rise in more personalised promotions. Just like online gambling platforms have long offered casino bonuses in the form of matched bets or free spins, online sports platforms are beginning to offer similar incentives.
One of the most popular is to pay out on winning live bets if you decide that you are willing to cash out early. This helps the gambling platform limit its losses while also guaranteeing the player wins regardless of how the last few overs of the game play out in front of them. These interactive bonuses also nudge players to place another bet because they show them that they can make decisions while simultaneously watching a match.
Can anything slow the growth down?
The Sports, Online Gaming, and Prevention of Fraud Bill has recently imposed a 28% tax on online gambling, which may deter some more casual players from taking part. That said, the industry is projected to achieve a CAGR of 8.59% through to 2027 as a result of new platforms, greater public awareness, and better integration between live broadcasts and mobile betting apps.
The last word
It will certainly be fascinating to see how Indian sports betting continues to grow and evolve in the coming years. We predict that a greater concentration of elite sporting events on the major streaming services will increase the viewership figures and make in-game betting partnerships more of a business opportunity for the sports leagues and commissioners. This would then result in greater numbers of fans becoming casual sports gamblers because the friction and barriers to entry will have virtually been eliminated.
Regardless of what happens over the course of the next 12 months and beyond, we’re always right here to keep you updated on everything that’s going on.
