India’s Sports Tech Revolution: Opportunities, Obstacles, and What Lies Ahead

India's sports technology market is experiencing a pivotal shift, propelled largely by the explosive growth of the Fantasy Sports (FS), or Online Casino  segment. According to a joint report by Deloitte and the Federation of Indian Fantasy Sports (FIFS), the industry generated a substantial revenue of ₹26,700 crore in FY24, with projections indicating a 13% CAGR, potentially reaching ₹49,500 crore by FY29.

This article explores the key dimensions of this dynamic sector, including its core segments, recent challenges, and future outlook.

Market Structure: Key Sub-Sectors Driving Growth

The Indian sports tech ecosystem is broadly categorized into three major sub-sectors:

1. Fan Engagement
   This segment includes fantasy sports platforms, digital ticketing solutions, and Online gaming. It focuses on creating immersive and interactive experiences that deepen fan involvement.
2. Sports Data & Analytics
   Leveraging wearables and data intelligence tools, this sub-sector enables real-time performance tracking, player health monitoring, and strategic insights for athletes and teams.
3. Core Technologies
   Encompassing advanced digital infrastructure such as cloud computing, 5G connectivity, IoT integration, digital payments, and social media platforms, this backbone technology fuels scalability and innovation across the sector.

Recent Setbacks: A Year of Investment Decline

Despite its promising trajectory, the sports technology market faced a significant downturn in 2023. Changes in tax policy and retrospective taxation notices triggered a sharp 90% decline in investments, with no new capital inflows recorded in 2024.

However, this contraction hasn't stopped revenue generation. Under the new tax regime, the Indian government has seen a notable rise in GST collections from the industry:

• FY23 GST contribution: ₹1,480 crore
• Projected FY24 GST contribution: ₹3,520 crore
• Estimated cumulative GST (FY24–FY29): ₹30,380 crore

Challenges and the Way Forward

For sustained and balanced growth, the industry urgently needs:

• Clear national regulations
• A stable and transparent tax regime
• Uniform standards for responsible gaming and data use

These measures would not only restore investor confidence but also ensure a safer, more sustainable environment for users.

A Growing Market with Enthusiastic Fans

Despite being relatively nascent, the Indian sports tech market has demonstrated remarkable growth:

• Total investments (2018–2023): ₹27,500 crore
• Public sentiment: 89% of Indian sports fans believe emerging technologies have improved their overall viewing experience.

This strong consumer endorsement reflects the growing cultural relevance of sports like online casino in india , especially among younger demographics.

Fantasy Sports (FS) continues to be the cornerstone of India’s sports technology industry, contributing the largest share with ₹9,100 crore in revenue in FY24. However, recent shifts in the tax landscape — particularly changes in Goods and Services Tax (GST) regulations — have significantly altered its growth trajectory.

The sector, which once anticipated a booming 30% CAGR from FY22 to FY27, is now expected to grow at a more modest 7% CAGR from FY24 to FY29. Revenues are also projected to decline by 10% in FY25, falling to ₹8,190 crore. These setbacks are largely due to a sharp increase in GST, which has halved profit margins for FS operators and resulted in a 90% drop in investments in 2023, with no new investments reported in 2024.

Challenges and the Evolving Regulatory Landscape

The new tax regime has introduced notable challenges, including retrospective taxation notices, leading to uncertainty for investors and operators. Yet, it has also boosted government revenues. The industry’s GST contributions are expected to double to ₹3,520 crore in FY24, with cumulative contributions projected to reach ₹30,380 crore by FY29.

Amid these developments, industry leaders are calling for:

• A stable and predictable tax environment
• Clear national-level regulations
• Comprehensive standards for responsible gaming

Such measures, they argue, are vital for restoring investor confidence and ensuring long-term growth.

Technology and Policy: Shaping the Future of Indian Online Sports

Technology is rapidly becoming a catalyst in transforming India’s sports ecosystem. Smt. Raksha Khadse, from the Ministry of Youth Affairs and Sports, noted the impact of innovation:

“The way technology is being integrated through this partnership with Deloitte, along with other initiatives, is very promising for the future of sports in India. The role of sports technology will help us better analyse athletes and their development.”

Joy Bhattacharjya, Director General of FIFS, echoed this sentiment:

“The sports technology industry in India is poised to unlock new levels of athletic excellence, fan engagement, and growth. Technology will improve athlete performance, enhance fan engagement, and enable talent identification.”

Prashanth Rao, Partner at Deloitte India, added:

“India’s sports technology market is projected to grow at a 13% CAGR to ₹49,500 crore by FY29. Fantasy Sports is fostering deeper engagement and contributing to employment generation, with 17,500 new jobs expected by FY27.”
He emphasized the importance of a progressive regulatory framework, innovation-friendly policies, and robust infrastructure to position India as a global sporting powerhouse.

Future Outlook: Innovation, Regulation, and Growth

India’s sports technology market stands at a crossroads. Its future growth will be shaped by:

• Continued integration of emerging technologies
• Supportive regulatory reforms
• Strategic infrastructure development

The upcoming Draft National Sports Policy 2024 aims to bolster the ecosystem from grassroots to elite levels, leveraging tech-driven tools for performance analysis, fan connection, and economic upliftment.

Conclusion: The Road Ahead

Despite recent hurdles, India’s sports technology market holds immense promise. Driven by innovation in fan engagement and athlete performance, and powered by data and digital tools, the industry has the potential to emerge as a global leader. With policy stability, investment support, and technological advancements, India can truly become a sports tech powerhouse — one that not only entertains but empowers.