Indian Fantasy Sports encourages Massive Participation and Revenue Increase in T20 Cricket Tournament
The Indian Premier League (IPL) 2023 witnessed a remarkable surge in the popularity of fantasy sports, with the industry experiencing a substantial 24% increase in revenue compared to the previous year. This two-month long T20 cricket tournament captivated an impressive 61 million participants in fantasy gaming, contributing to the sector’s exponential growth. Redseer Strategy Consultants reported these findings on Tuesday, shedding light on the rising trend of fantasy sports in India.
Explaining Fantasy Sports:
Fantasy sports entail online games where individuals create virtual teams comprised of real players from professional sports leagues. These virtual teams compete based on the statistical performances of the actual players in real matches. Two prominent fantasy gaming platforms in India, Dream11 and MPL, both valued at over $1 billion, are highly popular among enthusiasts.
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Revenue Growth and User Participation:
The IPL 2023 played a pivotal role in driving the surge in revenue for Indian fantasy sports platforms. These platforms witnessed a remarkable 24% growth, generating revenue of Rs 2,800 crore compared to Rs 2,250 crore in the previous year. Redseer Strategy Consultants noted that the fantasy sports market has grown steadily at a compound annual growth rate (CAGR) of 30% since IPL 2019, signifying its sustained upward trajectory.
During the T20 cricket tournament, a staggering 61 million users actively participated in fantasy gaming. Of these, 35% were new users who played for the first time on the platforms. Consequently, there was an 11% increase in cash users during the season, with each user spending an average of Rs 127 per match.
The top three platforms captured an overwhelming 96% of the market share during IPL 2023, with an average revenue of Rs 458 per user for the season. Additionally, the excitement of the IPL extended beyond the tournament itself, contributing to 13% of the revenue from non-IPL sporting events held during the same period.
Impact on Weekday and Weekend Gaming:
The average gross gaming revenue (GRR) during weekdays surpassed that of weekends, reaching 1.3 times the weekend figure. GRR reached its peak during the final match, indicating the heightened interest and engagement of fans during the tournament’s climax.
Challenges Faced by Mega Tables:
The report highlighted that Mega Tables, representing the highest prize pool tables in each match across the platforms, faced a 30% reduction in size during weekends due to multiple matches taking place on the same day. However, despite the decrease in size, Mega Tables contributed significantly to revenue, accounting for 60% due to a higher rake rate of 24%.
Advertising and Revenue Sharing:
According to Redseer’s estimates, a total of Rs 10,000 crore was spent on advertisements during IPL 2023. The Board of Control for Cricket in India (BCCI), franchises, and broadcasters earned 65% of this expenditure as direct revenue. The remaining 35% constituted indirect revenue earned through ad revenue by social media platforms, traditional media, and other internet platforms.
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Future Projections:
The Indian fantasy sports industry has experienced remarkable growth in recent years. Revenue surged by 31% to reach Rs 6,800 crore in the financial year 2022. Projections by The Federation of Indian Fantasy Sports (FIFS) and Deloitte India indicate that this figure is expected to surpass Rs 25,240 crore by the financial year 2027, achieving a CAGR of 33%. India’s fantasy sports market, with over 300 fantasy sports platforms and an estimated user base of 180 million, is the fastest-growing market in the world. The sector is projected to reach 500 million users in the next five years, further cementing its prominence.
The allure of the IPL extends beyond the live matches, as millions of Indian fans actively engage in fantasy sports to create their dream teams and compete virtually. The success of IPL 2023 contributed significantly to the rise of the Indian fantasy sports industry, marked by substantial revenue growth and increased user participation. As the sector continues to flourish, it is expected to reshape the sports and entertainment landscape in India, with promising growth projections for the coming years.
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