According to the report, the FS segment has generated an estimated Rs 5,500 crore as indirect revenues through its suppliers and service providers
Revenue of the Indian fantasy sports industry is estimated at Rs 5,200 crore in FY21 and is expected to grow at a CAGR of 38% to Rs 1.65,000 crore in FY25, according to a report by The Federation of Indian Fantasy Sports (FIFS) and Deloitte. The report, entitled ‘Fantasy Sports: Creating a Virtuous Cycle of Sports Development’, shows how India has become a fast-growing fantasy sports (FS) market as a result of multiple factors, including a tech-savvy millennial population, a growing affiliation with among more sports, fast smartphone penetration, availability of cheap mobile data.
The fantasy sports industry is making a huge economic breakthrough in India’s overall growth and development in multiple ways – creating highly skilled jobs, attracting foreign direct investment (FDI) and generating significant revenue for the treasury, said Anwar Shirpurwala, CEO of FIFS. “Recent positive developments namely the announcement of the Government of Rajasthan to regulate games of skill, the decision of K’taka HC to overturn the law banning games of skill, the announcement of Union Budget 2022 to adopt an AVGC (Animation Visual Effects Gaming Comic) Taskforce and Prime Minister Narendra Modi’s statement on India’s potential to become a global hub of the gaming sector have put together a clear roadmap for growth of this industry. In another progressive step for the sports tech ecosystem, the state of Gujarat recently announced in its sports policy blueprint an incubator for sports startups and a wellness program for athletes. This will further enhance the growth of the sports industry, which has until now been sidelined from serious bureaucratic talks,” he added.
According to the report, India is the world’s largest Fantasy Sports market with a user base exceeding 13 crores. This is expected to grow further in the coming years at a CAGR of 32%. Of these, nearly 30% of the registered user base for FSPs in India is made up of female users, a number expected to grow steadily in the coming years, the report estimates. In addition, 50% of user transactions on the FS platforms came in through tier 2 and tier 3 cities, which not only promotes digital payment literacy but also increases the population’s engagement and involvement in sports through the grassroots level.
Cricket, the dominant sport on fantasy sports platforms, could see its share move into other sports such as kabaddi, hockey, soccer and volleyball which are gaining popularity but is expected to continue growing at 30% CAGR over the next four years and remain the largest contributor to the total revenues of the fantasy sports industry. Women’s cricket has also become popular in fantasy sports; the first 12 matches of the 2020 ICC Women’s Twenty20 World Cup generated 4.1 crore viewing hours in India, a 213% increase from 2018. During the Phase 1 of the 2021 edition of the Indian Premier League (IPL) alone The user base of the FS industry in India has grown by more than 20 lakh users.
According to the report, the FS segment has generated an estimated Rs 5,500 crore as indirect revenues through its suppliers and service providers. The total revenue attributable to FS (direct + indirect) is therefore Rs 10,700 crore. It can also be noted that the indirect revenues will also generate their own flow of GST.
For Prashanth Rao, partner of Deloitte India, online fantasy sports have seen unparalleled growth and widespread adoption among Indian sports fans in recent years. “Using the very latest technology, locally developed, this sunshine sector now symbolizes India’s ‘Atma Nirbhar’ vision of self-reliance and growth. I believe FIFS can help the sector unlock its true potential by encouraging responsible, rules-based gaming and contributing to the development of the sports industry in India,” he emphasized.
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This post India’s Fantasy Sports Industry revenue was estimated at Rs 5,200 crore in FY21: Report was original published at “https://www.financialexpress.com/brandwagon/indias-fantasy-sports-industry-revenue-was-estimated-to-be-rs-5200-crore-in-fy21-report/2461484/”