Under the Public Gambling Act of 1867, betting and gambling are unlawful in most of India’s areas and are therefore rigorously forbidden. However, according to data.ai’s most recent research, “State of Mobile 2024,” sports betting applications continue to gain traction in the nation with 19.4 lakh new downloads in 2023. Of these, some 2.6 lakh downloads were recorded in just the final quarter of 2023, raising grave concerns about how these bans are actually enforced. In Q42023, there were 4.2 crore downloads of sports betting applications globally, up from 3.7 crore in Q42022.

It should come as no surprise that Indian consumers’ spending on sports betting increased from $105,000 in 2022 to $121,000 in 2023. The data shows that in 2019, it was only $28,000.

The survey also shows how dominant India is still in the fantasy sports market, with nine Indian companies ranking in the top 10 most downloaded applications globally, according to a data.ai report.

The following are listed in the same order: Dream11, My11Circle, Howzat, Myteam11, Cricket Exchange Fantasy, Vision11, A23, Perfect Lineup, and Real11. All of them are categorized as “Fantasy Sports and Sports Betting Apps” by Data.ai.

The amount of money that Americans spent on fantasy sports jumped from $25,000 in 2022 to $120,000 in 2023.

According to the research, one of the factors contributing to sports apps’ widespread appeal is that they “let users feel like they are a part of the action.”

Notably, My11Circle is one of the Indian Premier League’s current sponsors. In the past, Dream11 has sponsored the cricket world cup and the IPL.

Effects of GST are transient

The survey states that the downloads of gaming applications decreased dramatically in 2023’s second quarter before increasing once more in 2023’s fourth. Interestingly, the Indian government declared in October 2023 that Real-Money Gaming (RMG) would be subject to a 20 percent retroactive GST.

For the nation’s emerging gaming and fantasy sports industry, which had been at the forefront of advertising and sponsoring sports contests, the tax structure was thought to be the largest blow. Nevertheless, it doesn’t appear like the incident stopped gamers from downloading and enjoying their favorites.

With around 455 million players, India’s gaming market has grown to be a powerful force in the M&E industry, surpassing filmed entertainment to take the fourth spot. Approximately 25% of them play games online every day. According to an EY research published early this year, about 90 million players paid for online games, and real money gaming accounted for 83% of category earnings.

According to the EY analysis, “the robust growth of this segment is also expected to continue through to 2026, when it will become a sector worth Rs 38,800 cr.”

Bets In Grey Areas

Industry experts value the unregulated gambling sector at over Rs 8,20,000 crore. Insiders claim that there is a spike in business around the World Cup, IPL, and even election season.

By the way, the central government outlawed 174 gaming and betting apps in December 2023. The applications Mahadev, Parimatch, Fairplay, 1XBET, Lotus365, Dafabet, and Betwaysatta were among those that were prohibited.

Online betting is mainly unregulated because there is no clear legislation governing it.

India forbids both game-fixing and sports betting. But the new-age fantasy game applications let users create their own teams, play against other players, and put bets (for want of a more appropriate word). According to experts, these are deemed to fall under the category of “games of skill,” and as such, they are now permitted to function.

Industry insiders revealed, “A number of laws, including the IT Act and Consumer Protection Act, have been implemented.” The Public Gaming Act of 1867 is one of the main laws addressing this. Although it is out of date regarding online betting, states have the authority to regulate the law.