India’s state of Maharashtra will be sitting on a US$1.09 billion gold mine by the year 2021 if it allows the establishment of land base casinos, an economic think-tank has predicted.
Economic research firm Global Market Advisors LLC (GMA) has expressed optimism that land base casino will thrive in this western Indian State, which covers the wealthy Mumbai metropolis, given the size of its population and due to its vibrant economy.
Citing a 2011 census, GMA noted that Maharashtra’s population was t 112.4 million or 9.3% of India’s total population. It is also considered as the largest urban agglomeration in India in 2011 with 18.4 million living within the urban agglomeration of Mumbai. On the other hand, approximately 45.2% of the state’s total population was urban.
The research further pointed out that the growing Indian middle class will fuel the state’s casino gambling, generating nearly US$10.2 billion annually by the year 2025. GMA estimated that 52 percent of Maharashtra’s population will be of gambling age in 2021.
“With Maharashtra’s concentrated population and share of the Indian economy, the State of Maharashtra, and Mumbai in particular, present an appealing gaming market opportunity to the State of Maharashtra and the greater gaming community,” Kit Szybala, Director of Research and Analysis at Global Market Advisors. “GMA expects that these casinos will garner a majority of gaming revenue and demand from the local market, which is expected to include the population living within five hours of Mumbai.”
Breaking down the data, GMA predicts that 18 percent of adult, urban residents will spend at least $70 when it plays 12 times a year in a casino while 9 percent of rural residents will shell out $80 when it gambles six times a year. In total, Maharashtra could gain $879 million in local gaming revenue in 2021.
GMA is also convinced that foreign and domestic tourist market segments will help lift Maharashtra’s gaming revenue – given that the Indian state’s integrated resorts are properly designed and situated.
In May, an official of the Maharashtra government estimated that there are over 75 lakh (7.5 million) foreign and 1.8 crore (18 million) domestic tourists visit Maharashtra every year, especially Mumbai, Konkan and Ajanta-Ellora.
In total, GMA expects the foreign tourist demand segment to generate $89.3 million in gaming revenue and the domestic tourist demand segment to generate $128.6 million in gaming revenue in 2021.
“With large levels of local market and tourism market demand and the assumptions defined in this research brief, GMA expects that the greater Mumbai gaming market could generate a total of $1.1 billion in gaming revenue in 2021, with a large majority of gaming revenue stemming from the local market,” it said.