RUMMY

DOES ONLINE RUMMY HAVE A FUTURE IN INDIA?

INTERVIEW BY DONNA AMO

India is a hotspot when it comes to the real money gaming (RMG) industry. Expected to grow at a CAGR (compound annual growth rate) of 40%, the industry is estimated to be worth

USD 2.8 Billion by the year 2022 (Deloitte). Within this, the online rummy industry is slated to be among the biggest markets, accounting for USD 335 Million of the online gaming market in 2019 (Statista). Even with the huge market potential, the legal issues in the country continue to hamper its growth. We got a chance to converse with Satya Mahapatra, the former CMO of Junglee Games which owns and operates Junglee Rummy, one of the most popular and larger rummy sites, to give us a bit more insight into the current state of the rummy industry in India.

Andhra Pradesh, Telangana, Tamil Nadu and Kerala have banned online rummy. How are these state-specific bans impacting the growth of rummy in the country? What is the

nature of the impact on revenue generation pre and post-ban?

The states of Andhra Pradesh, Telangana, Tamil Nadu and Kerala contribute to approximately 70-80% of the new rummy players and about 60-70% of the revenue. A ban in these states has impacted the growth and revenue for all rummy operators. Having said that, rummy has been traditionally played at homes in India and it’s a matter of getting these players online. The industry will keep growing even after these bans. Delhi and states like Maharashtra, West Bengal, Gujarat, and Uttar Pradesh are the high growth states. Most mature rummy operators have invested in branding and have the expertise to invest the money in the bank to continue with the aggressive acquisitions.

The Online Rummy Federation (TORF) has suggested that Niti Aayog include rummy in the draft policy. What is your take on this?

It’s a valid ask. Not just rummy, all forms of online gaming should be included. The government should set guidelines/regulations for all online games played with money in the country. A clear differentiation should be made between games of skill and games of chance.

While the Supreme Court considers rummy as a game of skill, the state governments are interpreting the law as per their will. How can this issue be tackled?

There’s a clear misinterpretation of the impact of banning rummy by the stakeholders in the government. Banning is not a solution as this leads to a situation where legitimate operators refrain from accepting players from these states. But unscrupulous operators still accept players and the problems continue. In India, gambling is a state subject, the primary law used by the states for the gambling legislation is a British-era law called the Public Gambling Act, 1867. Ironically, while India still follows this law, the U.K. has legalised and regulated various forms of gaming and gambling. Thankfully, Niti Aayog has initiated the process of much-needed reform in one of the games and they should include other formats of gaming in India too.

The issues faced can be addressed by implementation of uniform responsible gaming policies –deposit & gameplay limits, regular audits, cool off and self-exclusion are musthaves along with policies to safeguard the interest of the players. The operators should maintain and share a common pool of problem gamblers to restrict them and appoint a body to help them overcome the condition. Along with the above, responsible advertising policies are also a must-have.

According to an InMobi report, India is the fifthlargest mobile gaming market in the world, and close to 44% of the population is expected to be playing online games on their devices by 2022. How will this impact the growth of rummy in India?

The Indian gaming ecosystem is led by adoption via mobile phones. With a huge gaming community supported by affordable data and smartphones, India is poised for exponential growth. And with rummy leading the vertical in terms of revenue, online rummy in India is definitely poised for growth.

From your experience of working with Junglee Rummy, how difficult or easy it is to advertise an online rummy platform in India?

Advertising rummy on online platforms is easier than fantasy and poker. All large platforms like YouTube, Google Adwords, Facebook and Networks allow rummy advertising.

From an online rummy operator’s point of view, how do you think a platform should expand its base, given the bans in various Indian states?

The gaming industry is about offering entertainment to the players. Maintaining the right balance in providing value for money entertainment and protecting the interests of the players should be considered as the No.1 priority by the operators. The advertisements promoting messages like make money, get rich playing rummy, should be toned down or completely taken down.

Branding has been a key growth driver of the top rummy brands in India. Position your brand with the

right values and features via targeted localised video campaigns and influencer marketing. Support these with targeted performance marketing campaigns to convert. The marketing mix stays the same, only your targeted territories/states change.

When it comes to user acquisition, how does the process get impacted when there is negative coverage about rummy in the press.

The negative coverage will affect all acquisition initiatives and the customer acquisition cost (CAC) will increase. Operators should get together and address

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the reasons for these negative coverages in the press.

Where do you see the rummy industry in the next five years?

I expect to see at least 3-4 unicorns in the industry in the next 5 years.