Transacting users during IPL season are expected to grow by 25-30% to reach 68 Mn users in 2023
Nearly 80% of users are coming from Tier 2 cities and beyond
The average revenue per user is expected to grow from INR 410 in IPL 2022 to INR 440 per user in IPL 2023
Just like every year, Indian Premier League (IPL), this time too, is all set to boost the revenues and users of fantasy gaming platforms in India.
According to a report by market research firm Redseer Strategy Consultants, gross gaming revenue from fantasy sports during the IPL 2023 is estimated to grow 30-35% to INR 2,900-3,100 Cr.
Transacting users during the IPL season are also expected to grow by 25-30% to reach 68 Mn users in 2023 from 55 Mn users in 2022. Moreover, nearly 80% of users are expected to come from Tier 2 cities and beyond.
Further, the average revenue per user is expected to grow from INR 410 in IPL 2022 to INR 440 per user in IPL 2023, Ujjwal Chaudhry, partner, Redseer Strategy Consultants, said.
Key Factors Contributing To Growth
As Google has allowed fantasy platforms to be available on its Play Store, under a pilot programme, this will further increase the number of transacting users during IPL 2023, the report said.
Last year, tech major Google announced a limited period pilot to allow real-money games like daily fantasy sports (DFS) and rummy apps on its app marketplace. Google said the Play store would run a limited-time application-only pilot from September 28, 2022, without specifying any timeline.
“Most platforms have increased their marketing efforts before IPL season in order to acquire and convert more and more users on the platforms,” the report said.
Many fantasy gaming startups such as Dream11, My11Circle, MyFab11 have entered the tournament as sponsors. Dream11 is backing six teams this IPL season.
Ex-BharatPe MD Ashneer Grover has also launched his fantasy cricket platform CrickPe. He told Inc42 that CrickPe parent Third Unicorn raised $5 Mn (INR 40 Cr) at a valuation of close to $36 Mn (INR 290 Cr). Grover claimed CrickPe is aiming to become profitable by the end of this IPL season.
Among other factors, real money gaming users have received a positive push from the government after the set up of a specific ministry to overlook the sector. The government has also formalised rules and regulations regarding GST for RMG platforms, the report said.
Last year, the government appointed the Ministry of Electronics and Information Technology (MeitY) as the nodal ministry for the online gaming industry, including the fantasy gaming sector, offering regulatory clarity.
The government’s decision to make TDS changes proposed in the Budget 2023 came into effect from April 1. During her speech for the Union Budget 2023-24, Finance Minister Nirmala Sitharaman proposed removing the TDS threshold of INR 10,000 for online gaming startups. Moreover, a 30% TDS will be levied on game winnings.
India is the world’s biggest fantasy sports market with a user base of over 13 Cr as on March 2022, according to a report by Deloitte.
India’s fantasy sports market is projected to grow from INR 34,600 Cr in FY21 to an estimated INR 1,65,000 Cr by FY25. Cricket continues to remain the highest revenue contributor for the fantasy sports industry.