India’s Online Gambling Market Set to Open as Sikkim Leads the Way

March 15, 2010 – India’s online gambling market is on the brink of a major transformation, with the Himalayan state of Sikkim taking the lead. Sikkim plans to issue three online gambling licenses, potentially paving the way for other states to follow suit and legalize online gambling across the country.

According to the Sikkim government’s plan, the bidding process for these licenses will begin within the next two weeks. A total of 13 operators are competing for the three licenses, with the aim of launching the platforms by April 2010. This move not only represents a milestone for Sikkim but could also serve as a blueprint for opening up India’s vast and untapped online gambling market.

A Market of Opportunities and Challenges
It remains unclear whether operators will only be allowed to accept bets from Sikkim residents. With a population of just 600,000 and relatively low per capita income, the market in Sikkim alone is limited. Operators are expected to place higher bids only if they can accept bets from across India. However, advertising their services outside Sikkim may still face stringent restrictions.

India’s gambling market is estimated to be worth around $60 billion annually, most of which is currently driven by illegal bookies operating on credit. If online gambling is legalized nationwide, it could transform the landscape of this lucrative industry.

Global Giants Eyeing the Indian Market
International gambling giants such as William Hill, Betfair, Bwin, and 888.com are expected to participate in the bidding. Ladbrokes has also shown interest but has yet to find a local partner. Under Indian regulations, foreign companies must partner with local businesses to enter the market, adding an extra layer of complexity for international contenders.

India’s Current Gambling Scenario
Currently, legal gambling in India is limited to horse racing and casinos in Sikkim and Goa. Recently, Goa’s casino operators significantly increased entry fees—tenfold—in an effort to reduce the number of local Indian patrons. This reflects the complicated stance on gambling within Indian society.

The future of India’s gambling industry is rife with potential and uncertainty. Whether Sikkim’s pioneering move will inspire other states to follow remains to be seen. If a nationwide rollout occurs, India could emerge as a significant player in the global gambling market.