Flutter Entertainment has confirmed it will shut down Junglee real-money gaming operations in India following legislative changes in the country.
India’s parliament voted to adopt the Promotion and Regulation of Online Gaming Bill, meaning that money games, including games of skill, have been outlawed.
Flutter CEO Peter Jackson said he was “extremely disappointed” by the development, while the online gambling giant criticised the “exceptionally short timeframe” from the bill being introduced to parliament to the Presidential assent just two days later.
Overall, the update represents a threat to the wider fantasy gaming sector, with Prime Minister Narendra Modi’s government taking action due to the risk of financial harm to users.
Flutter has detailed that Junglee has stopped its real-money activity, with more than 1,100 workers employed by the subsidiary firm.
The parent company of Paddy Power and Betfair announced a round of job cuts in the United Kingdom in June, and there will be concerns of what impact the new law in India will have on Junglee.
Law change in India will drive users to black market, says Flutter chief
Flutter added that its Indian operations were expected to record around $200 million in revenue and $50 million in earnings on adjusted EBITDA this year, but no latest forecast was provided after the Junglee update.
Company CEO Jackson stated, “I am extremely disappointed with the sudden changes to the regulatory landscape in India.
“Over the last four years Junglee has invested significantly in its local market, building a workforce of over 1,100 employees to deliver innovative skill-based gaming products to Indian customers. Central to this has been a strategy which prioritizes consumer protections and responsible gaming.
He continued, “We believe this change will drive customers to the unregulated market, offering limited consumer protections and providing no contribution to the local economy. We believe in regulatory frameworks that put customers first, and are evaluating options to restore skill-based games in the Indian market.”
As part of this, Flutter has vowed to consult with other parties to build support to return the 70-year-old constitutional protections for skill-based games, but that appears unlikely without a U-turn from the Modi administration.
Image credit: Flutter Entertainment / Canva
