This presentation provides an overview of investment opportunities in the gaming market in Sikkim, India. It discusses the size and growth drivers of India's overall gaming market, with a focus on trends in Sikkim. The presentation is aimed at investment companies, hospitality providers, and gaming operators interested in opportunities in Sikkim, which is expected to experience growth in tourism and gaming revenue due to a new upcoming airport expansion. Regulatory changes may also ease rules governing online gaming.

2. Brief
This presentation will explain some of the key
trends shaping the Gaming industry in India, which
mainly comprises of online gambling, casinos, and
lotteries.
Our objective is to provide our perspectives on the
ripe investment opportunities in this market in
Sikkim, India and provide insights on how this
market is expected to shape up in the near future.
This presentation is targeted towards investment
companies, hospitality providers, and casino and
gaming operators interested in identifying and
tapping into new areas of growth opportunity.
Summary
Objective
Target
Audience
Source: Runaway Insights Analysis, Secondary Research Articles and Publications

3. PART 1
SPOTLIGHT ON THE GAMING MARKET IN
INDIA

4. India’s Gaming market, which comprises of legal and illegal gambling is valued
at close to $ 30 Billion per annum.
The main Markets for gaming in India are Goa, Daman, and Sikkim. Goa leads
the market with close to 90% of market share by revenue.
In India, gaming is mainly conducted through online betting and lotteries,
paper lotteries, and casinos.
The state-wise differences in laws and regulations govern the geo-availability
of online gaming services and will shape the industry.
The Indian casino market is dominated by a few competitors and is yet to
witness near-optimal penetration due to demand over-running supply.
In the near future, majority of the Indian gaming market is expected to be
driven by mobile games, online gambling, betting and lottery software.
Overview
1
2
3
4
5
6
Source: Runaway Insights Analysis, Secondary Research Articles and Publications

5. Overview
Sikkim
No. of Casinos: 3
Major Players:
-Delta Corp
-Mayfair Group
Daman
No. of Casinos: 1
(Awaiting
Approval of
Gaming License)
Major Players:
-Delta Corp
Goa
No. of Casinos: 15
Major Players:
-Delta Corp
-Pride Group
Source: Runaway Insights Analysis, Secondary Research Articles and Publications

6. Growth Drivers
Increasing
Population of
Wealthy
Individuals
Opportunity for
Economic
Development
Penchant and
Demand for
gambling
Source: Runaway Insights Analysis, Secondary Research Articles and Publications

7. Growth Drivers – Explanation
Increasing
Population of
Wealthy
Individuals
Over the next few years, the average household income of Indians is
expected to increase significantly. This increase in income coupled with a
consumerist mindset is expected to drive the demand for vacations in
popular tourist destinations as well as for recreation and gambling.
Opportunity for
Economic
Development
Penchant and
Demand for
gambling
Individual states are taking heed of the tremendous opportunity that the
gambling industry holds for contribution to the local economy. The
regulation of gambling laws which prohibit state locals from participating
in gambling whilst encouraging out-of-state citizens to gamble has been
contributing to these States’ revenues.
There is a huge demand for gaming amongst the country’s population.
The inaccessibility of casinos has also given rise to the massive illegal
underground market for gaming. This signifies a huge demand across the
country and the potential for growth of this industry if this demand is met.
Source: Runaway Insights Analysis, Secondary Research Articles and Publications

8. Growth Restraints
Stringent
State Laws
Lack of
Accessibility and
Quality
Regional
Competition
Source: Runaway Insights Analysis, Secondary Research Articles and Publications

9. Growth Restraints – Explanation
Stringent State
Laws
Gaming operators obtain a major share of revenue by way of offering
online gaming services to citizens in Indian states other than their origin.
However, recent legal changes have geographically illegalized participation
in online gaming by citizens from states other than the state of origin of
the gaming operator.
Lack of
Accessibility and
Quality
Regional
Competition
Although there is a widespread demand for gaming across the country,
majority of the people in the big cities are unable to access casinos due to
stringent local restrictions. Locations such as Sikkim are difficult to reach
via road, which in turn discourages citizens wishing to gamble. This is
responsible for a large untapped potential for market penetration.
The comparatively better quality of casino gambling experience offered by
regional gambling destinations such as Nepal, Macau, and Sri Lanka
encourages gamers to travel to these destinations rather than Goa,
Daman, or Sikkim. These destinations offer better ambience and facilities
and a more comprehensive gaming experience.
Source: Runaway Insights Analysis, Secondary Research Articles and Publications

10. Market Penetration Trends & Updates
Australia based Silver Heritage Ltd is one of the major overseas companies
that may decide to enter the Indian Casino market in the near term future.
The group has recently engaged in Greenfield developments along the
Nepal-India border.
Another Australia-based operator, Crown Resorts is likely to consider
opportunities in India in the near future.
Apart from this, it is also expected that casino operators from Singapore
and Macau are likely to see the growth opportunities and consider setting
up shop in India
Source: Runaway Insights Analysis, Secondary Research Articles and Publications

11. PART 2
SPOTLIGHT ON THE GAMING MARKET IN
SIKKIM, INDIA

12. Sikkim’s gaming market is currently underserved due to lack of proper
transport to the region to cater to the increasing out-of-state demand.1
However, the region is expected to witness a greater influx of gamers owing to
the development of a new Airport, Pakyong Airport, by 2017.2
The State is promoting gaming to increase tourism, attract investments,
increase employment of locals, and earn tax revenues.3
However, the region faces significant competition from Nepal due to their
higher number of casinos as well as better quality of gaming.4
In the near future, Goa and Sikkim may also face competition from Daman’s
new casino and its proximity to cities like Mumbai and Surat.5
Overview
Source: Runaway Insights Analysis, Secondary Research Articles and Publications

13. Competitive Landscape
Casino Sikkim, Hotel Royal Plaza
Teesta Ranjit Private
Limited (TRPL)
Online Gaming, Lotteries & Gaming ShopsCasinos
Company Casinos owned / operated Company
Casino Mahjong, Mayfair Spa
Resort
Mayfair Group
Hotel Welcome Heritage
Denzong Regency
Delta Corp.
Lottery Licenses (KhelPlay),
Online gambling
Sugal & Damani
Group
Services offered
Golden Gaming
International
6000 Sq. ft. gambling zone
recently opened in Gangtok.
Offers Keno and Virtual Horse
Racing through Intranet
gambling Terminals across
Sikkim.
Lotteries & gambling Shops in
Gangtok.
Future Gaming
Group
Essel Group
(Playwin)
Lotteries & gambling Shops in
Gangtok. Offers Keno and Virtual
Horse Racing through Intranet
gambling Terminals across
Sikkim.
Source: Runaway Insights Analysis, Secondary Research Articles and Publications

14. Regulatory Overview – Key Decision-Making Bodies & Acts
Key Decision-Making Bodies involved (Non-Exhaustive)
• Union Home Ministry
• Sikkim State Government
• All India Gaming Federation (AIGF)
Key Decision-Making Acts & Regulations (Non-Exhaustive)
• Lotteries (Regulation) Act, 1998
• Sikkim Casinos (Control & Tax) Act, 2002
• Sikkim Online Gaming (Regulation) Act, 2008
• Sikkim Online Gaming(Regulation) Rules, 2009
Source: Runaway Insights Analysis, Secondary Research Articles and Publications

15. Regulatory Overview – Recent Updates
Sikkim Gaming
Operators
Allowed to offer
games to people
anywhere in India
Pre - 2015
Post - 2015
Legislation passed by Central Govt., stating that Sikkim
Gaming Operators are restricted to physical limits of
gaming parlors located within Sikkim, using intranet
gaming terminals.
2015
Sikkim Gaming
Operators
Unable to offer
gaming outside of
Sikkim
Leading to Sikkim Gaming Operators turning to Nagaland
(which has lax laws) to enable their All-India presence.
Although Nagaland can be considered for possible future
opportunities, there is not much visibility on whether
Nagaland may also implement the same law as Sikkim
Consequences
Source: Runaway Insights Analysis, Secondary Research Articles and Publications

16. Regulatory Overview – Profit Sharing
Gaming License Holders
in Sikkim
Overview: Profit Sharing Agreement signed between Sikkim
Government & Gaming Operators and Taxation on Winnings
Profits
Kept by Government
5% or INR 5 Crore
(Whichever is higher)
Winnings
Kept by Government
30% of Winnings
(Taxation)
Source: Runaway Insights Analysis, Secondary Research Articles and Publications

17. Why Invest in Sikkim?
The region is expected to witness higher tourism traffic and gaming revenue over the
next few years owing to the establishment of a new airport by 2017.
Sikkim is expected to witness a gradual easing of rules & regulations governing gaming
over the next few years.
The government has recently been focusing on promoting Sikkim as a popular tourist
destination as well as drawing investment on development of the local gaming industry.
The government also plans to issue three additional licenses for online sports betting.
Further to this, the introduction of online gaming may result in gambling friendly laws.
The region is witnessing a positive feedback and investor sentiment in response to
companies setting gaming shops in Sikkim.
The All India Gaming Federation (AIGF) is lobbying for the government to focus on FDI in
gaming in India which may result in favorable market conditions for foreign investors.
Current establishments are more reliant on the government which presents an
opportunity for private sector investors.
Source: Runaway Insights Analysis, Secondary Research Articles and Publications

18. THANK YOU
To Understand Further
Contact
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info@runawayinsights.com