MUMBAI: The Federation of Indian Fantasy Sports (FIFS), India’s self-regulatory industry body for fantasy sports (FS), unveiled the findings of a study titled “Fantasy Sports: Creating a Joyous Cycle of Sports Development” in collaboration with Deloitte on Tuesday.
India is the world’s largest fantasy sports market with a 13 million user base, which is projected to grow at a CAGR of 32% in the coming years, according to the survey.
Due to factors such as a large tech-savvy millennial population, growing affiliation with sports, high smartphone penetration, and the availability of low-cost mobile data, the country has emerged as a high-growth, in-focus market for FS, estimating a CAGR of 38%. According to the survey, India’s fantasy sports industry revenue is expected to reach Rs 5,200 crore in FY21.
Cricket, one of the dominant sports on fantasy sports websites, may see its share in other sports such as kabaddi, hockey, football, and volleyball, which are seeing an increase in popularity, but is projected to maintain a 30% increase over the next four years, as the fantasy sports industry’s total revenue increases.
Fantasy sports have also taken root; the first 12 matches of the 2020 ICC Womens Twenty20 World Cup saw 41m viewing hours in India, up 213% from 2018. The FS market user base in India increased by over 2 million during Phase 1 of the 2021 edition of the Indian Premier League (IPL), alone.
Key points of the survey:
50% of sales on the FS services have come from tier 2 and tier 3 cities, which not only fosters digital payment literacy but also increases participation and involvement of the community in sports at the grassroots level.
Further, the male FS user segment is expected to grow at a CAGR of 14% over 202026.We can conclude that the production of INR 5,200 crore in FY21 would have generated an indirect income of about Rs 5,500 crore from its vendors and service providers. So far, Rs 10,700 cr in revenues are attributable to the FS (direct + indirect). It should be noted that the indirect income would go into its own stream of GST as well.
In addition, it is also fostering athletics and non-cricket sports, since people tend to perfect their skills in order to compete in fantasy sports competitions.
NITI Aayog, a primary government think tank, has released comprehensive fantasy sports recommendations, according to FIFS chief executive officer (CEO), Anwar Shirpurwala, taking note of the potential of this sector and the resultant favorable court decisions. Recent positive developments, including Rajasthan Govt’s decision to regulate games of skill, Karnataka HC decision quashing the bill banning games of skill, Union Budget 2022 announcement to establish an AVGC Taskforce, and Prime Minister Narendra Modi’s speech on India’s potential to become a global hub of gaming industry. The state of Gujarat recently announced an incubator for sports startups and an athlete welfare program, as part of another important step forward in the sports tech ecosystem.
Anwar said that FIFS, as the only self-regulated industry body for this burgeoning industry, is fully committed to work with the government, both at the Centre and in the states, to ensure that the industry’s expansion and protects its users.
Prashanth Rao, partner, Deloitte India, said that Online Fantasy Sports has seen unprecedented growth and widespread acceptance among Indian sports fans over the past few years. “I believe that FIFS can assist the industry in unlocking its true potential by encouraging responsible game-based betting and contributing to India’s growth of the sport,” Rao said.
Given the abundant evidence on the prevalence of skill in FS, as well as significant decisions on the FS format made by the Hon Supreme Court and various High Courts, it is worthwhile to have a coherent, national-level legislative structure in place, putting an end to the ambiguity and complexity of arrangements.With checks and balances, such a system would bring about greater accountability and transparency, make life easier for business owners, and ensure that users’ rights are protected.
