Why You Should Think Twice Before Starting an iGaming Business in India

10:58 AM, Saturday, December 11th, 2021
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iGamingiGaming is an industry that’s experiencing tremendous growth in India, with plenty of local businesses from RummyCircle to MyCasino.in capturing large shares of the market within their respective niches.

And it’s no no wonder that so many iGaming businesses are popping up all over the country these days – India is experiencing a massive boom in internet connectivity and smartphone usage, which is helping propel iGaming companies to previously unseen heights.

For example, did you know that in the last 4 years alone, the number of internet users in India has doubled from 422 million to 845 million people?

These millions of people are potential customers that could all potentially be looking for real money online casinos to join. So it’s no wonder that there’s currently such a scramble trying to capture market shares in this fast-growing market.

However, before you jump out of your chair and decide to open an iGaming company of your own, it’s important to be aware of the various challenges facing iGaming companies in India, so in this article, we’re gonna be taking a closer look at those challenges. iGaming is a legally contested topic in India. It’s important to remember that iGaming, however innocent it may sound, is in fact a form of gambling. Indeed, the meaning of the word iGaming is internet gambling.

It is, therefore, impossible not to talk about the issue that gambling is a legally contested topic in India.

This is not to say that gambling is entirely prohibited or illegal in India – it’s most certainly not – it’s just that the laws around gambling are different depending on which part of India you are located in, and which type of gambling you are engaging in.

As an example, online rummy (and indeed all other types of online gambling) are illegal in the states of Andhra Pradesh and Telangana.

In another example, the state of Assam prohibits physical gambling locations, however online gambling is not specifically mentioned or targeted by Assam gambling laws, making it technically legal to use online gambling sites within the state.

In a third example, the state of Maharashtra prohibits physical gambling locations, however, skill-based gambling sites (such as horse racing and rummy) are allowed to operate within the state.

So if you’re thinking about setting up an iGaming business, it would be prudent to investigate the gambling laws within your state, or alternatively set up your business in a state that has more lenient gambling laws as pertains to iGaming.

The iGaming market is highly competitive
It’s no secret that there’s lots of money to be made in the iGaming industry. On the other hand, there’s also lots of iGaming startups out there, both national and international, competing for market share.

Having competition is not necessarily a bad thing. It shows that there’s proof of concept, and that the market is there. But you need to be prepared, and to understand that money will not start falling down from the sky as soon as you open your iGaming business – you need to be prepared to earn it.

If you’re going to set up an iGaming business in India, you need to be prepared to invest both ample time and money to ensure that your project becomes a success.

If you’re starting off by yourself or with a group of friends, you need to be heavily committed to the project. Unless you’re introducing a brand new idea or trying to carve up a market in a very specific niche, you have to understand that the competition is going to be fierce.

You will be up against some of the biggest international iGaming companies in the world, ranging from UK brands like Betway to Chinese multinational companies like Tencent. And let’s not even get started on Indian iGaming companies such as Dream11.

However, if you’re bringing a new idea to the table, or if you have found a way to improve the iGaming experience for Indian players in a fundamental way, then success can certainly be yours. Just remember to keep these challenges in mind before you start your iGaming business!

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