India's fantasy sports industry to grow at 30% CAGR, reach Rs 25,300 crore by FY27: FIFS-Deloitte report

With over 300 fantasy sports platforms and 18 crore users, India is the fastest-growing FS market in the world and it will grow to Rs 25,300 crore at a CAGR of 30% by FY2027, as per a recent report by Deloitte.

The Federation of Indian Fantasy Sports (FIFS), in collaboration with Deloitte India, has released the co-branded report titled ‘Fantasy Sports: A catalyst for the sports economy’.

The report brings the spotlight on the booming fantasy sports industry in the country.

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. 

Key takeaways from the report are:

Industry Overview:

• With over 300 fantasy sports platforms (FSPs) and 18 crore users, India is the fastest-growing FS market in the world.
• The industry grew by 31% to Rs 6,800 crore in FY22. It is expected to touch Rs 25,300 crore by FY27.
• The industry is currently valued at Rs 75,000 crore.
• 60% of user transactions on the FS platforms have come in through tier 2 and tier 3 cities.

Industry’s contribution to India’s economy

• Attracted Rs 15,000 crore in FDI till FY 22 which is expected to touch Rs 25,000 crore by FY27.
• Contributed Rs 4500 crore by the way of taxes. This is expected to reach Rs 26,000 crore in the next 5 years.
• GST contributions from the fantasy sports industry is expected to increase by 5x in the next 5 years, from Rs. 2,800 crore in FY18-FY22 to Rs 14,700 crore between FY23-FY27.
• Created high-skill jobs for 12,800 people across the economy, creating far greater impact on the society and larger ecosystem.
• FS platforms indirectly employed 7,500 professionals in FY22, and are expected to generate 10,500 indirect job opportunities by FY27.

Driver of India’s Sports Economy:

• 69.8% FS users watch new sports and learn about new players and leagues.
• FS players invested Rs 3,100 crore towards 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 FY 27.
• FS is playing a key role in promoting non-cricket sports in India. 69.8% users strongly agreed that they started to watch new sports and learn about new players and leagues as a result of their interest in playing fantasy sports
• With increasing participation and viewership of women in sports, participation of women in FS is growing, comprising an estimated 30% of the user base at present.

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 honourable PM’s vision for making India a global gaming superpower.”

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."

The report also outlines the growth opportunities for FS. The key ones being 1) increased investor confidence with favourable regulatory framework and nodal agency that will spur FDI, 2) growing interest in and viewership of sports other than cricket, 3) inception of new leagues such as Women’s’ Premier League and Women’s T20 world cup and 4) overall spotlight on the AVGC sector.

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