Online Gambling to Become Regulated in India

Written by Haylie | Friday, October 30th, 2009

It has recently been announced that online gambling brands, William Hill, Betfair, and unconfirmed bwin are making moves to obtain licenses in India. These and possibly other online gambling operators are seemingly awaiting the flood gates to open, so that they can be the first to saturate the previously untapped market that. The 1.2 billion people that make up India’s massive and growing population means there are lots of opportunities on the horizon. While only certain parts of rural India have experience a life full of Internet, the Net is swelling to reach the wealthier parts of the nation.

The first place to offer online gambling licenses within the India jurisdiction will be a region known as the Province of Sikkim. While there are reportedly only three licenses to be given out, at least 13 companies are apparently competing for licensing. Once these licensees are established, it is expected that they will be eligible to provide online gambling services to all of India.
Indian law states that all new projects taking place within the nation must involve a local partner. As a result, Agilisys Managed Services has suspected to be partnered with Betfair; whereas, rumors are circulating that William Hill has made an alliance with Global Torrent International. Both Agilisys and Global Torrent are local India-based “partners.”

Other companies that are potential licensee holders are standing on the sidelines, waiting for something to happen and other companies to lead the way before they jump into something so unknown and unidentified as India’s online gambling market and government, for that matter. Right now, there are just too many questions surrounding permits and policy for many online gambling brands to get excited. Regulations will dictate much of how the sites will be required to operate and many companies are nervous about wanting to be a part of it or not.

Questions regarding just how much freedom these site will have to operate on their own terms still remain unanswered. Also, concern for the actual benefit to India’s society is raised, as well as to what extent the licenses will allow multi-state operations. For now, there are many obstacles at the forefront of any real decisions; however, the advancement there is seemingly light years ahead of progress in the US. If the potential for a market is as lucrative as some believe it to be, those companies who do receive licensure to operate may have a gold mine on their hands.