India’s fantasy sports industry is expected to grow at a compound annual growth rate (CAGR) of 33 percent and reach 50 crore users by FY27, according to a report by the Federation of Indian Fantasy Sports (FIFS) and Deloitte India on Tuesday, April 18.
The report, titled ‘Fantasy Sports: A catalyst for the sports economy’, highlights the current landscape of the Indian fantasy sports industry, its impact on the economy, and growth trends.
India’s fantasy sports (FS) industry is the fastest growing in the world, with over 300 fantasy sports platforms and 18 crore users. The industry grew by 31 percent to Rs 6,800 crore in FY22 and is expected to touch Rs 25,240 crore by FY27.
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.”
The industry is currently valued at Rs 75,000 crore, with 60 percent of user transactions on the platforms coming from tier 2 and tier 3 cities. It has attracted Rs 15,000 crore in foreign direct investment (FDI) till FY22, which is expected to touch Rs 25,000 crore by FY27.
Additionally, fantasy sports industry has contributed Rs 4,500 crore by way of taxes, and this is expected to reach Rs 26,000 crore in the next five years. GST contributions from the fantasy sports industry are expected to increase by five times in the next five years, from Rs 2,800 crore in FY18-FY22 to Rs 14,700 crore between FY23-FY27.
The report notes that fantasy sports are playing a key role in promoting non-cricket sports in India, with 69.8 percent of users watching new sports and learning about new players and leagues.
The fantasy sports players invested Rs 3,100 crore towards the development of the sports ecosystem by way of sponsorships and partnerships with various sports leagues in FY22. This number is expected to reach Rs 6,500 crore in FY27.
FS has had a significant impact on society and the economy by creating over 12,800 high-skilled jobs across various industries. Furthermore, its platforms have indirectly employed approximately 7,500 professionals in FY22, and this number is expected to increase to 10,500 by FY27, resulting in a larger ecosystem of job opportunities.
Additionally, as women's participation and viewership in sports continue to rise, their representation in FS is also increasing. Currently, women make up an estimated 30 percent of the user base, highlighting the growing importance of inclusivity and gender diversity in the industry, the report stated.
Prashanth Rao, Partner, Consulting, Deloitte India, said, “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.
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