OFS gross revenue Rs 2,400 crore for the FY20: Report

Indian Fantasy Sports has reached new heights over the past few years, and recent research confirms that the Fantasy Sports industry has experienced three-fold growth over the past 12 months. The increase comes in despite the impact of the coronavirus pandemic. Indian Fantasy Sports platforms like Dream11 and Myteam11 have recorded a 167 percent increase in revenue over the past year, and have contributed to a massive ₹750 crore in taxes.

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According to the 'Business of Fantasy Sports' report by The Federation of Indian Fantasy Sports (FIFS) in collaboration with KPMG, Fantasy Sports in India have experienced a 3x increase over the past 12 months, recording more than ₹2,400 crore in revenue, compared to ₹920 crore last year. The report proves that fantasy sports are one of the fastest-growing industries in the country, and has increased the userbase from 2 million in 2016 to 90 million in 2019. Online Fantasy Sports (OFS) platforms like Dream11 have also grown, from less than ten in 2016 to 140+ players in the current market. The OFS market recorded a CEA (Contest Entry Amount) of over INR 6,000 crore in FY19 and more than doubled to INR ~16,500 crores in FY20, at a growth rate of 167 per cent over FY20. 

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50% of transactions on OFS platforms were initiated from Tier 2 and Tier 3 cities in India substantiating deep connection of OFS within the country.

The 'Business of Fantasy Sports' report states that every rupee of revenue earned by the Indian OFS platforms translates into revenue for its supporting industries; thereby resulting in indirect topline growth for these service providers. Indian OFS platforms like Dream11 are contributing to the overall growth of the country, by paying GST, TDS on winnings, attracting sponsorship through FDI, building IT infrastructure, advertising campaigns, and incremental earnings for OFS winners. More than 50 percent of transactions on Indian OFS platforms are made from Tier 2 and Tier 3 cities, promoting digital payment literacy and adoption.

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Online Fantasy Sports (OFS) operators’ India records revenue more than ₹2,400 crore through fantasy sports, experiences 167% growth 

According to the 'Business of Fantasy Sports' report by The Federation of Indian Fantasy Sports (FIFS) in collaboration with KPMG, Fantasy sports in India have experienced a 3x increase over the past 12 months, recording more than ₹2,400 crore in revenue, compared to ₹920 crore last year. The report proves that fantasy sports are one of the fastest-growing industries in the country, and has increased the userbase from 2 million in 2016 to 90 million in 2019. Online Fantasy Sports (OFS) platforms like Dream11 have also grown, from less than ten in 2016 to 140+ players in the current market. The OFS market recorded an astonishing ₹16,500 crore in the last year.

Fantasy gaming increases interest in real-life sport: Report

The report states that in a survey of more than 750 respondents, OFS and fantasy sports increases the consumption of real-life sports amongst 55 percent respondents. A further 65 percent said that there is a direct increase in time spent analysing, watching, reading and gathering information about sports. Fantasy sports platforms like Dream11 contribute further to the sports ecosystem by sponsoring live-sports events like cricket, football, basketball, baseball etc. The rapid growth of OFS platforms has led to the growth of a fantasy research ecosystem, which is emerging thick and fast on digital platforms. 

IPL 2020 postponement to have massive financial implications on OFS industries: FIFS chairman

NITI Ayog CEO Amitabh Kant said that he is a firm believer in the Indian fantasy sports industry and it could be a game-changer for the country as far as employment and career opportunities are concerned. Kant said that with government initiatives like Digital India and Startup India, OFS platforms can really harness the power of OFS and fantasy sports and create a robust sports ecosystem. FIFS chairman John Loffhagen said that the coronavirus pandemic is likely to affect the OFS and Fantasy Sports industries, and the postponement of IPL 2020 will result in a 30-40 per cent loss in revenue next quarter.

However, he added that as real-life sports are making a promising return, fantasy sports will be in for 8-9 months of non-stop sporting action, increasing traffic on OFS platforms. KPMG India Head of Media and Entertainment partner Girish Menon said that while the coronavirus crisis is likely to impact the consumption and overall sports landscape in the country, the growth prospect of the industry remains on track. Menon added that with social distancing measures, fantasy sports could play a key role in connecting fans to real-life sports and increase fan engagement.

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(Image Courtesy: Dream11.com)