Around 340 million Indians participate in cricket betting; $200 million wagered on each ODI: Report
homesports NewsAround 340 million Indians participate in cricket betting; $200 million wagered on each ODI: Report
Experts suggest that India's online gambling market is projected to grow at an annual rate of 8.59% from 2023 to 2027. And by 2027, it is estimated that there will be approximately 12.17 million users in India's online gambling market. This means an average revenue per user in India's online gambling market could reach $291.83.
The excitement of the Cricket World Cup 2023 has reached a fever pitch, with cricket matches happening across India. However, this is the time when illegal betting activities also pick up steam with crores of rupees pumped into the industry. According to a report by India Change Forum, over 340 million Indians participate in betting during major events like the Indian Premier League. The report also raises an alarm on offshore illegal betting’s rise in India after GST council imposed a 28% tax on the industry recently.
According to the report, despite regulatory restrictions, India's betting and gambling market has shown remarkable growth. It is estimated the Indian betting market (online and offline combined) was at USD 130 billion in 2018, with a CAGR of 7% from 2012 to 2018. Understandably, cricket betting dominates this sector, with an estimated USD 200 million wagered on each Indian cricket one-day international match. Globally, the sports betting market is thriving, valued at USD 70.23 billion in 2021, with an expected CAGR of 11.7% during the last decade.
Factors such as digital infrastructure growth, smartphone usage contribute to this growth. Some statistics from the industry are absolutely eye-popping. According to a report, Cricket dominates sports betting in India, with around 80% to 90% of sports betting revenues coming from cricket. The cricket betting industry is projected to be worth over $2 billion by the end of 2023. And during major events like the Indian Premier League (IPL), the report suggests that over 340 million Indians participate in betting.
Experts suggest that India's online gambling market is projected to grow at an annual rate of 8.59% from 2023 to 2027. And by 2027, it is estimated that there will be approximately 12.17 million users in India's online gambling market. This means an average revenue per user in India's online gambling market could reach $291.83. Even though cricket gambling is not new in India, but online gambling games have seen a rise with the mobile and internet penetration. The report says that online gambling has seen a 40% growth during the COVID-19 lockdown.
During the lockdown years of 2020 and 2021, India accounted for 15% of global gambling traffic. Now remember, recently India’s GST council had imposed a 28% GST on Online gaming and betting. According to the report, one of the most concerning consequences of the new tax policy is the potential rise of illegal offshore betting. The size of this illegal offshore betting market is estimated at Rs 8,20,000 crores which is almost 100 billion USD and post the new GST regime, the market is likely to grow at an alarming rate of 30% annually.
The report claims that the exponential growth of the illegal offshore betting industry will result in substantial revenue losses for the government. Under the new GST regime, the legal industry will lose revenue each year which on the other hand will grow to INR 18,01,540 crores for offshore betting and gambling platforms by 2026 by when the government would also be losing a corresponding tax to the tune of approximately INR 7,50,000 crores.
There are approximately 75 betting and gambling sites targeting Indian citizens, according to the report. Many of these platforms often employ aggressive promotional campaigns, attracting users with promises of no GST or taxes on winnings.
