India’s fantasy sports market is booming, with over 300 fantasy sports platforms (FSPs) and 18 crore (180 mn) users, making it the fastest-growing market in the world.
According the ‘Fantasy Sports: A catalyst for the sports economy’ report by Federation of Indian Fantasy Sports in association with Deloitte India, the fantasy sports industry witnessed a significant growth of 31pc to INR 6800 crore in FY22, and it is projected to reach INR 25,240 crore by FY27. Currently, the industry is valued at INR 75,000 crore. Notably, 60pc of user transactions on these platforms are coming from tier 2 and tier 3 cities, indicating the widespread adoption of fantasy sports beyond major metropolitan areas.
The report studies the current landscape of the Indian fantasy sports industry and its impact on the Indian economy outlining key growth trends, influence on the allied industries and finally its role in promoting India’s sports economy.
The report revealed that the fantasy sports industry has attracted INR 15,000 crore in foreign direct investment (FDI) until FY22, with projections to reach INR 25,000 crore by FY27. Additionally, the industry has contributed INR 4,500 crore in taxes, and this is expected to increase to INR 26,000 crore in the next five years.
The GST (Goods and Services Tax) contributions from the fantasy sports industry are also expected to see a substantial increase, from INR 2,800 crore in FY18-FY22 to INR 14,700 crore between FY23-FY27, representing a five-fold growth. Moreover, the industry has created high-skill job opportunities for 12,800 people across various sectors, making a positive impact on society and the larger economy. Furthermore, the fantasy sports platforms have indirectly employed 7,500 professionals in FY22, with projections to generate 10,500 indirect job opportunities by FY27.
In FY22, FS players invested INR 3,100 crore towards sponsorships and partnerships with various sports leagues, and this figure is expected to reach INR 6,500 crore by FY27. Additionally, fantasy sports are playing a crucial role in promoting non-cricket sports in India, with 69.8pc of users strongly agreeing that they started watching new sports and learning about players and leagues due to their interest in playing fantasy sports. Furthermore, with the increasing participation and viewership of women in sports, the participation of women in fantasy sports is also growing, currently comprising an estimated 30pc of the user base.
Launching the report, FIFS Director General, Joy Bhattacharjya, said “We are thrilled to see the outstanding growth of India’s Fantasy Sports industry and its positive impact on the sports economy as well as the overall economic health of our country. Even with these heartening trends, we believe we are just getting started. We are thankful to MeitY and believe that under their regulation, our industry will accelerate growth, spur innovation and contribute even more significantly towards nation building. We look forward to achieving the honorable PM’s vision for making India a global gaming superpower.”
Speaking at the launch event, Prashanth Rao, Partner, Consulting, Deloitte India, said, “Our analysis suggests that fantasy sports hold tremendous potential to help build a resilient sports ecosystem in India and significantly contribute to the nation’s digital economy. The increased allocation for sports in the 2023 Union Budget, new innovations, investor confidence and growing consumer demand will help generate fresh prospects for entrepreneurs and stimulate advancement of this sector in India.”
