India Online Gambling Market Outlook to 2030

India Online Gambling Market Overview

• The India online gambling market is valued at USD 2.5 billion based on a five-year historical analysis. It is driven by the rapid increase in internet users and smartphone adoption nationwide. This expansion is further fueled by technological advancements in gaming platforms, offering a seamless experience to users. The rise of secure digital payment methods has also contributed to the sector's growth. Various legal frameworks in place for certain states also support the steady rise of the industry, creating substantial revenue streams for operators.
• Mumbai, Delhi, and Bangalore are among the dominant cities in the Indian online gambling market. The dominance of these regions can be attributed to high disposable incomes, advanced internet infrastructure, and a thriving gaming culture. Additionally, a young population with a growing interest in online sports betting and fantasy sports is contributing to the user base in these cities. These urban centres also host numerous digital startups, further bolstering the online gambling ecosystem.
• India’s online gambling industry is still regulated under the Public Gambling Act of 1867, which prohibits most forms of gambling except for lotteries and games of skill. However, this outdated law does not address online gaming specifically, leading to confusion and discrepancies in enforcement. According to the Ministry of Law and Justice, the Act is being reviewed for updates, particularly to incorporate digital platforms and online activities. Several legal experts have called for a comprehensive regulatory framework for online gambling to ensure uniformity nationwide.

India Online Gambling Market Segmentation

• By Game Type: India’s online gambling market is segmented by game type into Casino Games, Sports Betting, Fantasy Sports, and Lotteries. Recently, Fantasy Sports has dominated the market under the game type segmentation due to the immense popularity of cricket and football in India. Platforms like Dream11 and My11Circle capitalize on user engagement, especially during major sports tournaments like IPL. The ease of access and the integration of real-time updates enhance user experience, making this sub-segment a favourite for sports enthusiasts.

• By Platform: The market is further segmented by platform into Desktop, Mobile, and Tablet. Mobile Platforms hold a dominant market share in this category, primarily due to the rising number of smartphone users and the development of mobile-friendly gambling apps. The flexibility and convenience of gambling on the go, paired with robust mobile payment options, contribute to the success of this sub-segment.

India Online Gambling Market Competitive Landscape

The India online gambling market is dominated by both domestic and international players who contribute to market consolidation. Major companies offer diverse portfolios, including sports betting, casino games, and fantasy sports, leading to their dominance. Domestic giants like Dream11 have an established user base, while global brands such as Betway have been entering the market, bringing advanced technologies and customer experience strategies.

India Online Gambling Market Analysis

India Online Gambling Market Growth Drivers

• Increasing Internet Penetration: India's online gambling market is benefiting from the rapid expansion of internet access, with over 840 million internet users in 2024, according to the Telecom Regulatory Authority of India (TRAI). This growth is driven by government initiatives like Digital India, which has increased broadband connections, especially in rural areas. The number of internet users in rural India crossed 320 million, opening up new avenues for online gaming platforms. The broad reach of affordable mobile data plans has also enhanced user engagement in online gambling activities. 
• Mobile Gaming Adoption: Mobile gaming adoption in India has surged, with 600 million active smartphone users as of 2024, as reported by the Ministry of Electronics and Information Technology (MeitY). Around 95% of online gamers in India use smartphones, and with affordable 4G and 5G networks, online gambling platforms are focusing on mobile-first approaches. The growth of mobile internet users, particularly in Tier-2 and Tier-3 cities, is helping fuel the expansion of the online gambling market, with mobile gaming transactions contributing to overall digital payments in the country. 
• Digital Payment Systems: The rise of digital payments has also catalyzed the growth of online gambling in India. According to the Reserve Bank of India (RBI), the volume of digital payments in India exceeded 76 billion transactions in 2023, driven by platforms like UPI (Unified Payments Interface). With real-time, seamless transactions, gamblers can easily deposit and withdraw money online. In rural areas, where cash has historically dominated, the adoption of digital wallets and online payment methods has grown substantially, supporting the rise of online gambling.

India Online Gambling Market Challenges

• Legal Ambiguity: India's online gambling market faces considerable legal ambiguities due to varying state-level regulations. While certain states like Sikkim and Goa permit and regulate online gambling, others like Tamil Nadu and Karnataka have imposed strict bans. The lack of nationwide standardization creates uncertainty for online gambling companies, resulting in legal battles and challenges to platform expansion. According to the Ministry of Law and Justice, states have the authority to regulate gambling independently, adding to the complexity of operating in India’s online gambling space.
• Cybersecurity Risks: Online gambling platforms in India face heightened cybersecurity risks, especially with the rise in digital payments and user data collection. The Ministry of Electronics and Information Technology reported that over 1.4 million cybersecurity incidents were recorded in India in 2023, many targeting online platforms. Hackers exploit weak security systems to commit fraud, and gambling platforms are a key target due to high-value financial transactions. To address this, companies need to invest in advanced security measures, such as end-to-end encryption and multifactor authentication.

India Online Gambling Market Future Outlook

The India online gambling market is expected to witness robust growth driven by the increasing acceptance of digital transactions, the introduction of 5G, and the continuous development of mobile gambling platforms. Over the next five years, the sector will likely see substantial investment in technological advancements, including blockchain for transparency, and AI for a personalized gambling experience. Additionally, the government's evolving legal frameworks may also play a pivotal role in defining the trajectory of the market. The rise of tier-2 and tier-3 cities in digital adoption further expands the horizon for market growth.

India Online Gambling Market Opportunities

• Emerging Markets in Rural Areas: The growing number of internet users in rural India presents an opportunity for the online gambling industry. With over 350 million internet users residing in rural areas as of 2024, according to the Telecom Regulatory Authority of India, the market for online gambling is expanding beyond metropolitan centers. Rural regions, previously underserved by high-speed internet, are now gaining access to digital platforms through 4G and 5G networks, offering online gambling operators a new customer base. This demographic shift will likely drive the next wave of growth in India’s gambling sector.
• Increasing Local Game Development: The Indian gaming industry is witnessing a rise in the development of localized content, tailored to regional audiences. Data from the Ministry of Information and Broadcasting shows that over 200 new gaming startups have been established in the last three years, many focusing on culturally relevant content for Indian audiences. This growth reflects increasing demand for region-specific games and online gambling formats that cater to diverse linguistic and cultural preferences, positioning India as a key market for locally developed online gaming platforms.