Emerging markets & culture
but this may not end up as the dominant form of gambling. The epic tales referred to previously have woven their way into every aspect of the culture of the Indian sub- continent. They can be seen in architecture, in law and jurisprudence and in modern- day marketing and financial services. It is no surprise, therefore, that games of chance based on the familiar stories and images are likely to be a rich seam for casino-style game operators to exploit. The current legal position is murky. Regulation is up to individual state parliaments but there are frequent challenges under federal law. Casinos do exist in those states which have significant inflows of international tourists but there is pressure to expand the offer to include the local population too. Prime Minister Narendra Modi has realised the potential of the gaming industry and there is the promise of federal legislation. When that comes it is likely to give priority to India-based products which is another reason why the epic tales are going to play their part. Vernacular fintech products have found their way into the villages using Indian culture and stories and gaming companies would do well to follow their lead. The hope is for light touch regulation which will sit on top of a self-regulatory model led by the industry. Whether that proves to be the case will depend on the cultural sensitivity of the main players and this leads on to perhaps the most interesting element of a new and potentially huge market like India. Whether it is in game design, marketing or even company structures, those who are successful will be those that best tap into cultural nuances. There is, for example, some pushback against foreign operators, so leading with a local operation is likely to be more readily accepted. Advertising which is culturally attuned will be much more important as a driver of customer take-up than compliance alone. Understanding not just what is allowed but whether the culture will accept a company’s offer is important in every market, but especially in India. It is a big market with
huge potential but policy development for foreign entrants will likely require a bigger budget than in other markets. CULTURAL HOMOGENIZATION: THE HOLY GRAIL? The size of the US consumer market is such that it allows companies there to develop their brand then roll it out cookie-cutter style around the world irrespective of local cultures. One has only to think of McDonalds or Starbucks to see that model in action. But will it translate to gaming? Culturally focused product development and operations which comply with a myriad of local regulations and technical requirements are very expensive and a big barrier to market entry. The industry would certainly benefit from a single approach to regulation but regulators have cultures too. Some are very old school seeing their role as policing an industry rather than facilitating a form of entertainment. Others are more modern, transparent and easy to work with, but they have political masters to answer to. Some countries have monopolistic practices and are ruled by autocracies which deny freedoms to their citizens. Some politicians are more interested in gaining cheap popularity points than in engaging with the more complex task of creating a better regime. Being more generous to them, there are competing interests for legislators which mean continually updating their laws is not feasible. Even so, the industry should be stronger at making the case for consumer products which are legal and which contribute considerable tax revenues whilst being sensitive to issues of culture and trust. Whatever the culture, legislators should understand that gambling is in our nature and that the internet means that nature can be expressed very easily. There are enough examples of sensible regimes which achieve high levels of channelization, set a sensible tax rate and allow for commercialization. Legislators should be encouraged to learn from them rather than claim that cultural exceptions mean they have to reinvent the wheel.
Anthony Gevisser, SVP Legal & Regulatory at SGHC (Super Group); Liran Barak, Partner at Herzog; Ranjana Adhikari, Partner at IndusLaw; Diane Mullenex, Partner at Pinsent Masons As reported by Phil Savage
22 • IMGL Magazine • November 2022
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