Fantasy Sports And The Gaming Industry In India Is Expected To Grow To INR 118.8 Billion By FY23
IFSG and KPMG launched a report on ‘The Evolving Landscape of Sports Gaming in India’. The report stated that the industry is expected to grow at INR 118.8 billion in India by FY23.
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Fantasy sports and the gaming industry in India has found different ways to encourage fan engagement in various sports across India. The industry is already worth INR 43.8 billion and is said to reach INR 118.8 billion by FY23 with a growth rate of CAGR 22.1%. The Indian Federation of Sports Gaming (IFSG), India’s first self-regulatory industry body for the sports gaming sector, and KPMG India Private Limited (KPMG) launched a report on the ‘The Evolving Landscape of Sports Gaming in India’ at its second flagship event - GamePlan 2019 with the theme ‘Economy of Sports Gaming’. The report provides an overview of the online gaming industry with a focus on fantasy sports and eSports.
Commenting on the occasion, John Loffhagen, President IFSG said, “With the rapidly growing digital infrastructure and emergence of new sports leagues, the Indian online sports gaming industry is witnessing a boom which shows no sign of slowing down. Exponential growth provides users with easy access to a vast variety of sports gaming apps, formats and genres. This could lead to potential confusion and misjudgement among players in choosing the right platform to engage with their favourite sport. As India’s only self- regulated industry body for Sports Gaming, we are dedicated to creating awareness about fantasy sports, encouraging operators to adopt ethical and best business practices and allowing sports fans to enjoy their favourite sports in a fun, exciting and safe manner.”
- Aims to create awareness about the growth drivers of the fantasy sports market in India and the stark differences between Fantasy Sports, eSports and Sports Betting.
- Finds that for 72% of respondents, the primary motivation for playing fantasy sports is fun and excitement. Further, 69% of respondents say that there are no overlaps between Fantasy Sports and Sports Betting and amongst these, 81% say that playing fantasy sports requires profound Skill and Knowledge.
“The overall online gaming industry stood at INR 43.8 billion in FY’18 and is projected to grow at a CAGR of 22.1% over FY18-FY23, to reach a size of INR 118.8 billion by FY23. Sports gaming in India has significant opportunities for the future and avenues like evolving ecosystem around sports gaming, user stickiness and increasing penetration of mobile internet amongst the regional language users in the country that could drive future growth”, said Girish Menon, M&E Partner, KPMG
Evolving ecosystem around sports gaming sees a symbiotic relationship between the stakeholders in the sports ecosystem and sports gaming companies. Increasing fan engagement with sports, growth of supporting sports infrastructure, uptake of digital payments and overall contribution to sports development in the country are some of the aspects which sports gaming has a direct and tangible impact on.
Harsh Jain, Co-Founder & CEO, Dream11 Fantasy Private Limited during the report launch said, “Sports fan engagement is something like the Jio effect that we had when 4G data was available at affordable prices. In the last couple of years data has become 90% cheaper and is used 20 times more than before enabling viewers to engage with the sport in different ways. Watching your own sport at your own time (even on the go) leads to ways in which you would want to engage with that sport even more. Through fantasy sports platforms, the viewership has gone up by 80% having a reason to delve into the statistics of the players and teams. These factors are working in tandem to increase fan engagement over the last couple of years.”
74% of fantasy sports users play these contests online 1-3 times a week, which points to a significant user stickiness on these platforms. Increasing this user stickiness with a multitude of sports offering on the platform, including non-cricket sports, and effective monetization of the same would be critical to the growth of the sports gaming industry in India.