Billionaire Mukesh Ambani evinced interest in online gaming platform which according to him is bigger opportunity than music, movies and television shows put together.
Reliance Industries Chairman believes that there is huge potential for gaming to grow in India.
Although, he didn’t disclose whether his wireless upstart, Reliance Jio Infocomm will enter the gaming segment, after luring 380 million users to its 4G technology, but he can’t be a mere spectator to this opportunity.
Ambani’s interest in gaming comes at a time when the country is witnessing the growth of online fantasy sports leagues, quizzing and card games such as poker.
This is being aided by the proliferation of affordable smartphones — users are expected to reach 850 million in two years — high-speed internet and falling data prices.
Revenue from online gaming is expected to climb from Rs 4,380 crore ($610 million) in the year ended March 2018 to Rs 11,880 crore by fiscal 2023.
Ambani showing interest in gaming business should be a cause of concern for the only casino (live, electronic and online) operator Delta Corp, given its market capitalization of Rs 4,200 crore.
Jaydev Mody owns 33% stake in Delta Corp. The second and third largest shareholders are Rakesh Jhunjhunwala and Capital Research and Management Company, holding 7.4% and 6.5%, respectively.
Given the size and investor profile, Delta Corp will find it difficult to compete with Ambani who is well known for destroying opponent’s in their game.
Ambani’s telecom company, Reliance Jio, nearly crushed competitors by introducing predatory pricing scheme. Delta Corp will have little chance other than surrendering to the industry behemoth which is well versed with the game of eliminating competitors.
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