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GREEN GAMBLING
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Table of Contents
I. Purpose………………………………………………………………..3
II. Opportunity…………………………………………………………...4
A. Product Description
B. Methodology
C. Strategic Advantages
D. Concerns
V. Financial Analysis…………………………………………………...11
VII. Conclusion……………………………………………………………15
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I. Purpose
Green gambling is a concept similar to plain gambling but involves equity in green and social
projects instead of money. In other words, via this mode of gambling people will either bet for
ownership in a green project (eco friendly) or invest (full or surplus accumulated through
gambling) in a social cause.
The primary purpose of starting this business venture, which is a green casino, is to help garner
monetary support for upcoming green projects in India. The secondary purposes which the
venture is expected to serve are:
1) Legalize the concept of gambling by making it a more constructive exercise as per the
new format –
a. doing so reduces the scope of the underworld to exist
b. revenues would then go to the government instead of the black economy
2) Provide a socially responsible form of entertainment to wealthy individuals
3) Encourage gamblers, especially problem gamblers to switch to green gambling while
discouraging people from going abroad to gamble away India’s wealth in foreign land
4) Provide multiple options of investment to the winning party(s) such as
partnership/ownership in green ventures/projects, investment in social causes and
investment in infrastructure projects
5) Provide an incentive even to the losing party(s) by giving away a certificate of
appreciation for giving away their money for a good cause/project
6) Contribute to the overall economy of the country by providing employment opportunities
(direct as well as indirect), promoting spending in associated businesses (such as food
and beverage, transportation – taxis, etc.), paying taxes to the government and promoting
tourism
7) Encourage entrepreneurship in green gambling and bring healthy profits for the
casino/gambling industry as well
The fact that rich and wealthy individuals prefer to spend money on activities that give them
pleasure and entertainment is being exploited by this concept of green gambling. Conventional
gambling, which otherwise has more harmful consequences, will be used in a more constructive
format while retaining the thrill associated with the game.
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II. Opportunity
“Irrespective of how one feels about the IPL, the fact is that it provides three hours of excitement
and entertainment to millions of cricket enthusiast worldwide. There is a demand for such a form
of cricket and the IPL capitalised on this passion.”
Going by the above example of IPL, which changed the format of cricket and turned it into a
huge success, green gambling proposes to change the format of gambling. Irrespective of how
one feels about gambling, it does provide entertainment to gambling enthusiasts worldwide and
there is a demand for this form of entertainment – a demand which the green casino wishes to
capitalize.
It is rumoured that thousands of crores are wagered on every single IPL match and that it is a
transnational industry. What is, per se, wrong with betting is the fact that it has not been legalised
to collect some taxes. Casinos are a rage world over. Instead of acknowledging the desire to
gamble and providing safe institutional machinery, we whine about it.
India is heavily dependent on fossil fuels for its energy needs. Most of the power generation is
carried out by coal and mineral oil-based power plants which contribute heavily to greenhouse
gases emission
The average per capita consumption of energy in India is around 500 W, which is much lower
than that of developed countries like USA, Europe, Australia, Japan etc. However, this figure is
expected to rise sharply due to high economic growth and rapid industrialization. The
consumption of electricity is growing on the worldwide basis. Energy is a necessity and
sustainable renewable energy is a vital link in industrialization and development of India. A
transition from conventional energy systems to those based on renewable resources is necessary
to meet the ever-increasing demand for energy and to address environmental concerns.
India has huge potential for producing electricity from renewable sources. Our achievement so
far is about 10406.69 MW, as against global installed capacity of approximately 200000 MW of
renewable electricity generation. While India’s achievement is commendable, it is necessary for
us to keep pace with the fast growth in developed countries.
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India’s varied geophysical layout levels makes it possible to cater to a variety of projects. For
example, wind farms in the South, geothermal and small hydroelectric projects in the North and
North-East and solar power in central and south could be further developed.
According to estimates, India receives 5000 trillion KW equivalent of energy per year through
solar radiation. Just one per cent of the country’s land area can meet its entire electricity
requirement till 2030. Indian green industry is still in nascent stage. Scientific surveys are being
intensified to identify specific viable and potential sites for tapping wind power. A recent study
undertaken to re-assess the potential, places it at about 45,000 MW. Assuming a grid penetration
of 20%, a technical potential of about 9,000 MW is already available for exploitation in the
potential States. 160 sites have so far been identified in 13 States. Survey work is in progress in
24 States / UTs. The States of Rajasthan and West Bengal have also shown wind potential
recently.
There are three imperatives that necessitate a transition to a sustainable energy system in the 21st
century:
There is a growing world-wide concern of increasing carbon emissions and the need to develop
clean energy projects. Also, we know that government hardly delivers on promises made in
policies. This is the time when action is required and all initiatives in this particular direction
should be undertaken at their earliest.
“Mapping of resources, more investment in R&D and adoption and commercialization of clean
technologies is obviously the next step forward for India” – INFA
The need for investment in various green projects can be met by involving the wealthy class of
individuals - businessmen, entrepreneurs, young blue collar workers, etc.
According to the World Wealth Report recently released by Capgemini and Merrill Lynch
Wealth Management, most countries in the world have increased their HNI (High Net-Worth
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Individuals) count. While, India has more than doubled it – maximum compared to any other
country in the world.
Gambling is illegal in all but two states in India and the underground nature of the operation
means it is largely controlled by organised crime gangs. Those criminal overlords are some of
the most powerful figures in Indian society.
India's burgeoning online audience, however, offers an opportunity to drive change. Online
gambling is now allowed in the Himalayan state of Sikkim, with British firms Betfair and
William Hill having bid for licences.
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There are 5 listed land-based gambling casinos in Goa.
1. Cidade de Goa Beach Resort and Goldfinger Casino, Vainguinim Beach, Goa
2. Holiday Inn Resort Goa (with Casino), Mobor Beach, Cavelossim-Goa Awaiting
4. Ramada Caravela Beach Resort and Casino Goa Nugget, Varca Beach, Salcete, Goa
III. Concept
Green Gambling
Green gambling is a concept similar to plain gambling but involves equity in green and social
projects instead of money. In other words, via this mode of gambling people will either bet for
ownership in a green project (eco friendly) or invest (full or surplus accumulated through
gambling) in a social cause.
Product Description
Economically viable ideas will be invited from people and those available with the govt.
These ideas will be carefully examined by panel of experts for confirmation of economic
viability. Government can play a role here
After listing of projects, categorization of projects will be done on the basis of sector.
Specific area of investment interest will be specified beforehand by the players. This
would provide convenience and space to investors.
Giving an option to the rich and wealthy to hold stakes in green projects and invest in
social causes.
Other options of investment such as funding of infrastructure projects, Schools,
Hospitals , etc, could also be made available to players upon collaboration with
government
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All participating parties would be given an incentive in terms of tax benefits on the
money invested via green gambling
To encourage participation in green gambling further, winner would be given an option to
take home the cash with which he/she played in the first place and invest the extra
earnings
Over a period of time, the concept of Green-Casinos and Green gambling would be
extended to the online format and dedicated portals would be developed to facilitate
online Gambling.
Methodology
Example
Assume INR 65 million is required for a project X taken from sector C. Break into 6500
units each of INR 100,000.
Distribution of these units to those investors who had registered for the sector C.
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Invite players to start gambling.
8% of the ownership to idea giver, 7% to gambling house owner.
Players will gamble for 85% or less equity in the project. Gambling will take place among
groups which can differ in size. Value of unit is not to be changed with time to prevent
speculation. Public trading can be allowed once the project gets completed. Value of units
linked to profit of the project.
Strategic Advantages
Key Concerns
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Will this involve enough social gamblers?
How to deal with IPR issues arising out of this exercise?
How will we tap the people who gamble not just for the thrill but for the immediate
monetary returns?
Opposition from conservative sections of the society
Cost concerns arising from online gambling – Since setting up of a Casino requires a
huge capital investment (to the tune of hundreds of millions of dollars), the threat posed
by substitutes such as online gambling portals would be significant.
The number of millionaires in India rose 22.7 percent to 130,000, the highest year-on-year
increase in the world, followed by a 20.3 percent growth in China. According to Ernst &
Young’s estimate - China and India will become the most attractive countries for investment in
renewable energy projects by 2012.
India’s varied geophysical layout levels makes it possible to cater to a variety of projects. For
example, wind farms in the South, geothermal and small hydroelectric projects in the North and
North-East and solar power in central and south could be further developed.
According to estimates, India receives 5000 trillion KW equivalent of energy per year through
solar radiation. Just one per cent of the country’s land area can meet its entire electricity
requirement till 2030. Indian green industry is still in nascent stage. Scientific surveys are being
intensified to identify specific viable and potential sites for tapping wind power. A recent study
undertaken to re-assess the potential, places it at about 45,000 MW. Assuming a grid penetration
of 20%, a technical potential of about 9,000 MW is already available for exploitation in the
potential States. 160 sites have so far been identified in 13 States. Survey work is in progress in
24 States / UTs. The States of Rajasthan and West Bengal have also shown wind potential
recently.
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V. Financials
Data gathered from various sources
Above data has been interpreted from online surveys by NPD Online Research
Key Assumptions
(A) (B)
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US $10-$20 million 38% 14% 5.32%
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Food 13.2% $375.4 million
Cost analysis
Breakeven point for a hotel casino will occur after n years where n can be computed by the
following calculation
Assuming 7% share of casino owner in the green projects and mark up of 7% on other sources of
income, the equation becomes
Total income from gaming income (average period is 5 years) = $1.533 billion*0.07/15 = $7.15
million
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VI. Role of Government
Government of India can make the idea more attractive by facilitating with
VII. Conclusion
Green gambling is really viable and attractive. The idea can be implemented with the proper
support and involvement of government and active participation from the public and corporate
sectors.
Certainly green industry has a bright future and gambling is a big industry in most developed
economies, therefore, marrying the two at an early stage of a developing economy could bring
significant returns for the country and both industries.
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