The Indian fantasy sports industry experienced a remarkable surge, with a 24% increase in revenue during the highly anticipated Indian Premier League (IPL) of 2023, as per a comprehensive report by KPMG India. Titled ‘The Business of Fantasy Sports’, the report delves into the profound impact of the IPL on the online gaming sector, which witnessed a substantial rise in user engagement and participation despite the challenging backdrop of the pandemic.
According to the report’s findings, the fantasy sports operators generated a staggering gross revenue of ₹2,400 crore in the fiscal year 2023, compared to ₹1,928 crore in the previous year. Impressively, the IPL accounted for approximately 65% of the total revenue, followed closely by other cricket leagues such as the Big Bash League, India vs England series, and the ICC World Test Championship. Encouragingly, the report projects that the fantasy sports industry will reach an impressive revenue milestone of ₹10,500 crore by the fiscal year 2026, reflecting a robust compound annual growth rate (CAGR) of 35%.
Several factors contributed to the exponential growth of the fantasy sports industry, as outlined in the report. These include the increasing penetration of smartphones and internet connectivity, the surging popularity of digital payment platforms, the favorable regulatory environment, and the growing recognition of fantasy sports as a skill-based game. The report also emphasized the socio-economic advantages of fantasy sports, such as the creation of employment opportunities, heightened fan engagement, and support for the development of sports infrastructure.
Additionally, the report shed light on intriguing insights into user behavior and preferences among fantasy sports enthusiasts. It revealed that as of March 2023, India had approximately 130 million fantasy sports users, predominantly aged between 25 and 40 years. Of these users, 85% were male and 15% were female. The top five states with the highest user participation were Maharashtra, Uttar Pradesh, Delhi, Karnataka, and Gujarat. On average, users spent around 42 minutes per day on fantasy sports platforms, with cricket ranking as the most favored sport, followed by football, kabaddi, and basketball.
The report’s findings paint a vivid picture of the thriving fantasy sports industry in India, showcasing its substantial revenue growth, increasing user base, and the significant role played by high-profile sporting events like the IPL. With its promising trajectory and positive socio-economic impacts, the fantasy sports industry is poised to continue its upward trajectory, shaping the landscape of online gaming in the country