Betway has been compelled to withdraw from India as a result of a number of government rulings against international bookmakers.
According to an email sent to bettors on October 1, online gambling company and esports sponsor Betway has entirely exited India. Betway informed its consumers via email that it had “regrettably elected to cease trading” in India.
The trading halt follows two setbacks to the company’s operations within the past nine months. The Ministry of Home Affairs of India prohibited the applications of Betway, 1xBet, Parimatch, and a number of other wagering companies in February.
Then, in July, India’s government announced it would impose a 28% tax on all consumer funds collected by online gambling companies, which affected Betway. Due to this, Betway has decided to leave the country.
Betway’s departure from India may affect some of its esports sponsors in addition to Indian gamblers. India is a massive market for gambling enterprises, and losing it would be a significant revenue loss.
Betway remains a significant sponsor in the esports community. In February, Betway renewed its sponsorship with tournament organizer BLAST, extending their four-year partnership. Betway began working with DreamHack in May. The company sponsored the sixth Beyond the Summer: CS_Summit in June. The wagering corporation has become one of the most prominent tournament sponsors in all of esports as a result of these sponsorships.
Betway has also been a major sponsor of international esports teams. In March, Betway renewed one of its longest-running sponsorship agreements with Ninjas in Pyjamas. In addition to Furia, MIBR, BIG, and beastcoast, the company’s blog lists sponsorship of several other teams, including Furia, MIBR, BIG, and others.
In a time when esports teams are increasingly seeking to secure more reliable revenue, news that a major sponsor has taken a blow to its bottom line is concerning. As previously mentioned, esports teams frequently ascribe a significant portion of their revenue to sponsors, which now include wagering sponsors on a regular basis. The loss of a significant market by Betway is unwelcome news.