India's fantasy gaming industry to grow at 30% CAGR, triple user base by 2027: Report

India's fantasy gaming industry is expected to grow massively in the coming years, a joint report byDeloitte and the Federation of Indian Fantasy Sports (FIFS) has shown. The report stated that the industry may attain revenues in excess of $3billion (Rs 25,240 crore) by FY27, up from $828 million (Rs6,800 crore) in FY22. Apart from revenue, the user base is likelyto nearly triple from the current 180 million (18 crores) to 500 million (50 crores). Overall, the industry is expected to grow at a30% compound annual growth rate till FY27.

India currently boasts of over 300 fantasy sports platforms - making it one of the fastest-growing markets worldwide. The user base in 2022 was nearly triple that of North America. Interestingly enough,the biggest growth witnessed by the fantasy platforms has come from tier II and tier III cities.

“The industry’s growth can be attributed to a combination of infrastructural and market-led factors. Improving digital infrastructure, long cited as a driver for India’s economy, is seen to amplify in impact every year. This has also led to an increase in digital payments,” read the report.

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The introduction of Jio, a mobile network operator by billionaire Mukesh Ambani-led Reliance Group in 2016allowed internet services to proliferate into the deep hinterlands of India, from where fantasy platforms are making their lion's share of the revenue.

New regulations introduced by government

The report comes in the backdrop of the Ministry of Electronics and Information Technology notifying the final rules of online gaming earlier this month.

Under the rules, the government will be appointing Self-Regulatory Organisations (SROs) which will include the likes of industry experts child experts,psychology experts andeducationists among others. The SROs will have the responsibility to declare which online games are permissible to be played.

"We are only regulating real money games that involve wagering. By process of exclusion, all other kinds of games will be permissible," Minister of State IR Rajeev Chandrasekhar told the reporters.

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Overall, India is steadily making giant strides in the video gaming market. Currently, China holds the numero uno spot with an estimated 744million gamers that generated revenues worth $45.8 billionin the year 2022.

Meanwhile, the Indian gaming sector, still considered to be in its infancy by many, managed to rake in $2.8 billion in revenue with a total user base of around 420 million. In 2016, India's total video game revenue stood around $543 million.

(With inputs from agencies)

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