Based on current market research, a new report has claimed that the Indian gambling market has enormous untapped potential offering a lot of scope for growth for casino operators. Global Market Advisors LLC (GMA) a U.S. based boutique consulting firm has released a whitepaper on the gaming market in India which shows that casino gambling in the country could reach US$10.2 billion annually by 2025 driven by growing middle class consumers having an interest in gambling.
GMA’s director of research and analysis Kit Szybala has highlighted that their estimates are based on assumption that the demand from gambling will come from the India’s middle and upper class adults numbering 20.3 million or 1.4 percent of India’s projected population in 2025.
By their estimates, 18 percent of the urban population in India by 2025 are likely to gamble 10 times a year spending an average US$55 whereas the rural population will gamble six times a year with an average gaming spend of US$70. Based on this, the paper has projected that out of the predicted revenue of US$10.2 billion, US$7 billion would be generated from the urban population while the remaining would come in from the rural population.
The country’s gambling market is currently vastly underserved with very few gaming facilities. For a population that is close to 1.3 billion people, there are only 730 tables and far lesser number of slot machines across the whole sub-continent. Although India features as one of the top 10 visitor source countries for Macau, the GMA holds that most international casino operators are overlooking Indian gamblers preferring to focus on high roller Chinese gamblers.
In a statement, Kit Szybala said, “The existing gaming markets in and near India generally offer an unattractive gaming product that could be easily and vastly improved. Other gaming destinations fail to adequately market or cater to the Indian gamer. Even so, Indians continue to demonstrate a proclivity for gambling, as many Indians frequent legal casinos domestically and seek out gaming opportunities abroad.”
GMA said that the Indian operators like Delta Corp and Pride Group as well as international operators like Silver Heritage were working on positioning themselves in the industry to take advantage of the underserved market in India.
Goa, Sikkim and Daman are only three territories in India that allow the operation of gaming establishments. Goa is the most established of the three states and has around 10 casinos in operation, while Sikkim has two operational casinos, and expects to open its third casino in the next few months.