What’s Behind India’s Booming Market for Fantasy Sports?

In India, if cricket is a religion, playing fantasy sports has become a raving passion. A recent Redseer Consultancy report revealed that the revenue from fantasy gaming platforms skyrocketed to $342 million during the Indian Premier League (IPL), recording a yearly growth of 24% with 61 million users! While the West was already engaged in a mature gaming culture, India had to patiently stand in the pavilion until 2008 to see fantasy cricket stride out to the pitch. Online gaming and e-sports flourished during the pandemic, building a competitive fantasy sports environment for players and businesses to monetize. This year, on the first day of IPL, its official sponsor and India’s leading fantasy cricket platform, Dream11, recorded 32 million unique users. The gaming platform also caters to football, basketball, and kabaddi enthusiasts, but cricket remains their primary revenue-generating business. 

Harsh Jain, Dream11’s Co-founder, is not just an entrepreneur but declares himself a “lifelong supporter of the Indian Cricket Team, Mumbai Indians, and Manchester United.” His brainchild was inspired by his own fantasy football adventures in the UK. After enduring a saga of over 150 investor rejections, Dream11 convinced Kalaari Captial in 2015. Since then, the platform has become one of the most profitable tech startups, attracting millions in investment from blue-chip venture capital firms. The success of Dream11 is just the tip of the iceberg of this thriving industry. Star players like Games24x7, Mobile Premier League (MPL), Gameskraft, and MyTeam11 are also hitting boundaries with their innovative gaming offerings and experience.

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The Pitch Report: Factors Influencing the Growth of Fantasy Sports in India

As forecasts paint a promising innings with a market value of INR 25,240 crore by 2027, both the present and future innings of fantasy sports in India are looking rosy. There are six major factors driving the growth of fantasy sports in India.

1. Technological Disruptions

With rapid digitization, consumers ask for more immersive and hyper-realistic experiences in online gaming and sports. With biggies like Dream11 already setting the standard for personalized user experience using artificial intelligence (AI) and machine learning (ML)  through partnerships with leading technology companies, the scope for tech interventions increases. The biggest tech disruptions in India include:

5G Connectivity: India’s digital movement and 5G revolution are already helping e-sports leverage connectivity to capture the market beyond metros.

AI Integration: AI platforms for contextual recommendations based on user intent, ability, skill level, and preference allow for better customization. Chatbot tools led by complex ML algorithms can actively address customer queries and provide accurate information, impacting CX.

AR/VR Integration: AR/VR into the digital world opens the door to enhanced audio and visual experiences, driving the momentum for fantasy sports.

Big Data and Analytics: Data and gaming analytics platforms that enable the processing of high-volume, high-velocity data drive better insights on touchpoints for personalization and improvement of intuitive features and capabilities to enhance user experience.

Reliance on Public Cloud: More gaming companies are leveraging public cloud services from providers like AWS, Google Cloud Platform, and Azure to handle the scale, support their computational and storage requirements, and improve the speed and agility for serving millions of concurrent users at cost-effective rates.

2. India’s Young and Tech-Savvy Population

Research by Startup Talky on fantasy gaming suggests that the average age of users is between 24 to 40. A KPMG research also found that 80% of users between 18 to 24 years and 25 to 36 years played at least thrice a week. The user demography, the proliferation of affordable smartphones, high-speed data connectivity, and India’s growing digital literacy are the primary contributors to the phenomenal growth of fantasy gaming platforms.

3. Motivations for User Engagement

The easy accessibility of gaming platforms on mobile apps is an important factor behind the popularity of fantasy sports platforms. Also, the element of “fun and excitement” associated with the experience is the primary motivation for 72% of users, finds the KPMG survey. Additionally, 48% of the survey respondents cite the “ability to manage teams virtually” and 47% felt “remain connected to the sport” are other important motivators to engage in fantasy sports.

4. Affordable Payment and Pricing Models

The growth of digital payment platforms in India allows for the purchase of gaming apps and online sports platform subscriptions. It helps users easily track and trace transactions. Also, most fantasy sports platforms allow users to play for free. Almost 80% of users prefer to play for free and the rest 20% opt for the pay-to-play model.

5. Investor Interest and Sponsorships

India has over 300 fantasy sports platforms and the reported average revenue increased three-fold since 2020. In 2022, investments worth ₹150,000 crores were raised, and nearly ₹ 3,100 crores were spent in the development of the sports ecosystem through sponsorships and partnerships. These investments are boosting the opportunities for the fantasy sports industry.

6. Standardization and Regulation

Fantasy sports are a game of skill. To bring in a level of standardization and protect consumer interest, the Indian Federation of Sports Gaming (IFSG) was formed in 2017 as a self-regulatory body. The IFSG is driving legitimacy which is integral to the growth of India’s homegrown fantasy sports ecosystem, job creation, and investment opportunities.   

The Road Ahead