|Corporate India is betting on improving its fortune overnight. Big groups such as Essar, Forbes, Modi, Ispat, and Videocon are venturing into the online lottery business.|
Almost all of them have concluded deals with state governments, obtained licences and are set to launch their products nationally in the next two months. A few have even got started on regional operations and are working aggressively towards establishing retail networks.
Subhash Chandra, Essel Group chairman: “The online lottery business is a potentially huge market and a low-risk, high-return business. Subhash Chandra, Essel Group chairman.”
The Essel Group certainly seem to have discovered that. The group recently found that the new business is delivering anywhere between 10% and 25% of the group’s turnover in the first year of operations itself.
The I-gaming business has virtually no expenses apart from the initial technology investment. Small wonder then, that break-even is around 10-13 months. And it’s a high volumes business. Only 15% of the population has taken part in a lottery and hence, there’s more than enough room for expansion.
There are three factors that play a vital role in this industry: technology, distribution and branding. With all the players possessing technology and distribution, success in the long run will come from proper branding and innovation. There is one glitch though - the association of online lottery schemes with gambling. Tamil Nadu, for instance, recently banned all lotteries.
Regardless India has finally embraced the online gambling industry, and looks set to become a world contender.