Middle class Indians the target
Nepal hopes to grow its casino gaming industry with customers from India, not China, according to a new report from Union Gaming Securities Asia Ltd.
The study, reported in GGRAsia, says Nepal wants to attract middle-class Indians who are “significantly underserved domestically” in terms of casino options. Union Gaming estimates that Indians account for up to US$10 billion in gross gaming revenue each year including legal and illegal betting.
“While not on the radar screen of most investors or casino developers, there are some who are betting on Nepal’s proximity to India—along with the economic growth of India and the general lack of casino-style gaming in India—as an attractive investment opportunity that could yield outsized returns for early movers,” said Union Gaming’s Grant Govertsen. He added that a deadly earthquake in Nepal last April will skew the numbers for 2015.
Govertsen noted that 400 million people live in India and West Bengal. “Granted, like most of India the majority are too poor to be considered target customers, but this still leaves many millions of individuals who are, indeed, potential casino customers,” he said. Many Indian gamblers now travel to Singapore to play.
Adding to the appeal for operators and investors is a surge of prosperity in Nepal; the country has seen an average 7 percent annual economic growth since 2010, reported GGRAsia.
