Analysis of Fantasy Sports contribution in the growth of India's sports economy
India is becoming a popular destination for fantasy sports, thanks to the widespread use of cellphones and the internet, both of which are considered helping tools to boost the popularity of fantasy sports nationwide.
Although cricket still rules the sporting world in India, the younger generation has started showing an interest in sports like?hockey,?kabaddi,?football,?basketball,?volleyball, and?baseball. According to an India tech white paper, fantasy sports, which brought many well-known businesses and celebrities together, can be credited for the growth and increase in interest in other sports in India.
In a 2020 recommendation paper, Niti Aayog identified India as a prime option to house the world’s rapidly expanding fantasy sports market.?
Fantasy sports are unlike any other type of?sports online gaming?because they are based on real-world events, seasonality, and the availability of live sporting events, which makes them non-addictive. This clearly distinguishes it from other types that are thought to be gambling or betting.
The Evolution of Fantasy Sports in India
Fantasy sports in India?have experienced incredible expansion. According to the FIFS-KPMG 2020 study, gross revenues of online sports operators increased by over three times year over year, from Rs.920 crore in FY19 to Rs. 2,400 crores in FY20.
Indian online fantasy sports platforms reportedly garnered significant international investment, according to a whitepaper by Indiatech. The FIFS report estimates that between 2018 and 2019, foreign investments reached a total of Rs.1,500 crore.?
The Indian fantasy sports sector gave the Indian sports ecosystem Rs 3,000 crore in the previous year through a variety of means, including sponsoring sports teams, and leagues, player buying rights, and even assisting in the growth of sports at the grassroots level. Along with the expansion of the sector and the user population that makes up its participant base, this figure is anticipated to double over the next three years.
According to industry estimates, online fantasy sports platforms and operators collectively paid GST of Rs 166 crore in FY19 and Rs 445 crore in FY20.
Before paying out winnings to winners, online fantasy sports (OFS) operators and platforms subtract applicable tax at the source. According to estimates from the industry, the tax deducted at source on prizes in FY 2019 was Rs 93 crore and would rise to Rs 250 crore by FY 2020
Online Gaming Revolution in India
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Online sports streaming, content aggregators, sports merchandise, e-commerce, and digital payments are just a few of the industries that have benefited from the online fantasy sports industry. These sports are being considered by some major corporations as a platform for product promotion.
Online gaming income in India is now $43.8 billion, and KPMG estimates that it will rise at a compound annual growth rate (CAGR) of 22.1 per cent to $118.8 billion by FY23. However, the Indian fantasy sports market is expanding at a CAGR of 32%, and by the end of 2024, it is predicted to be worth $3.7 billion. With platforms like Dream11, Mobile Premier League, and MyTeam11 leveraging the popularity of the Indian Premier League (IPL), it remains the most popular league.
Additionally, according to PwC’s estimate, the Indian market for online fantasy sports is anticipated to be worth $3.7 billion by 2024.
In terms of involvement, viewership, and commercialization, fantasy sports are demonstrating their potential to become one of the economy’s biggest contributors, according to Harsh Jain, CEO, and co-founder of Dream Sports, at the IAMAI’s IndiaDigital Summit 2022.?
The number of Indians playing in tier two and three cricket tournaments as well as in non-cricket sports like Kabaddi, basketball, hockey, football,?handball, and volleyball has dramatically increased as a result of fantasy sports. Customers watch matches or portions of matches that they otherwise wouldn’t because they have the opportunity to form a team and compete against others. This radically alters the engagement and causes a significant shift in sports watch, which also improves the commercialization of sports.
The rise of fantasy sports from traditional sports
There is a well-established symbiotic relationship between fantasy sports and traditional sports. According to data from several studies, fantasy sports are assisting in boosting consumers’ interest in viewing more live sporting events, which ultimately helps to fuel the commercial expansion of leagues and tournaments in a variety of sports.
The industry has also seen an increase in sports content platforms catering to the needs of fantasy sports players who spend time online, gathering statistics and knowledge to improve their skills while building their virtual teams. These include following sporting events and reading about athletes, teams, weather, and playing surfaces. The expansion of non-cricket sports like hockey, kabaddi, football, and volleyball as well as the rising popularity of women’s sports on fantasy sports websites are also predicted to help the business reach its full potential.
Conclusion
Industry leaders and experts think that formalizing recognition of the fantasy sports industry and establishing a system of governance based on principles would allow Indian fantasy sports operators to concentrate on innovation, grow their businesses, and expand their operations in a framework of transparent regulations. They said that doing, this will support India’s vision of “AatmaNirbhar Bharat” by fostering a sporting culture at all levels and turning India into a world sports giant.