With the United States being off limits for most online gambling operators, their attention is turning towards India as the solution to recouping their losses.
While many countries around the world are having a hard time financially thanks to the current global economic turbulence, India has recently become a potential gold mine for online gambling operators. This is mainly due to the current financial growth of their middle classes and the exponential increase in the number of people in that country who now have access to the Internet.
With the Indian middle classes now having more money in their pockets to spend, it hasn’t taken gambling firms long to figure out that they can put themselves firmly in front of those financially more affluent people and give them somewhere to spend it. They see this growing market as a viable replacement for the lack of US dollars flowing into their coffers since the US Department of Justice started getting tough with online operators.
However, what may initially have seemed a mere consolation prize could turn out to be vastly more lucrative than the now taboo American market. According to statistics that have recently been published by MECN (Media Entertainment Consulting Network), Asia and primarily India is easily the largest and also the fastest growing online gambling market in the world. With India’s massive adult population more than three times that of the United States and a growing proportion of those adults not only having more money to spend but also having access to the Internet, there is huge scope for gaming firms to attract new business.
One of the online casino companies already making inroads into India and Asia is 2UP Gaming. They are actively seeking business partnerships with Indian companies to get their foot firmly in the door and ensure they have a head start over their rivals with a firm market share. With the online gambling market worth $60 billion in 2009 and showing no signs of a slowdown in growth, it is a market that simply cannot be ignored. Add to that the fact that Internet usage is rising sharply, producing twenty sharp jumps over the last five years, more and more people will be able to access and spend their money in online casinos.
For gaming firms looking to set up shop in India, there are the incentives of low overheads and reasonable rates of taxation. Things may tighten up in future as the government realizes the potential for tax revenue from licensing and regulating the industry. But for now, it’s a far cry from the oppressiveness of the US Federal stance on the industry.