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Competition hotting up in Indian online lottery market

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Competition hotting up in Indian online lottery market

The Indian online lottery market is set for a major action. Modi Entertainment Network is entering the online lottery business through its subsidiary MWC Market Services Ltd. Currently, Playwin Infravest, Subhash Chandra of Zee Television Network's promoted company, enjoys a complete monopoly as it is the only player in the online lottery market in India.

Lalit Modi's Modi Entertainment Network which is currently into the distribution of satellite channels, cable and infotainment related activities has already hired Shrikant Gupte from Marico as the CEO of the new venture. MWC aims to install a fully computerised network of 7,000 to 9,000 terminals countrywide to put its lottery business into operation. A foreign partner is also expected to join the venture.

MWC is expected to launch its online lottery first with the Manipur state lottery and later on with the Punjab state lottery also. Rediffusion DY&R is going to handle its advertising account.

According to estimates, more than 2 crores Indians buy conventional lottery tickets every day. The lottery market is worth around Rs.50,000 crores per annum. But the share of the online lottery in that is expected to be a miniscule Rs.120 crores only in the whole year. The global market size of the online lottery business is estimated to be $155 billions.

The market is expected to pick up in India as lottery buyers find online lotteries to be more transparent and credible. The success of Playwin's Super Lotto and Thunderball brands has already proved the potential of the market. But the going may not be so smooth for MWC as Playwin is firmly entrenched in the market and enjoys a first mover advantage. The task is cut out for MWC as it not only has to popularize the concept among the potential target group which do not play online lottery but create a differentiating factor also to a woo the Playwin customers!


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