India's Fantasy Sports Industry To Earn Rs 25,300 Crore Revenue By FY27, Says Report

The Indian fantasy sports industry is set to grow at 33% CAGR over the next five years, taking the combined revenue to over Rs 25,300 crore from Rs 6,800 crore in FY22, according to a report published by the Federation of Indian Fantasy Sports and Deloitte India.

India is home to over 300 fantasy sports platforms and 18 crore users till date, which is almost three times that of North America, according to the report released on Tuesday. "This comparison is noteworthy given that the U.S. market is significantly more mature, having been in place for over 70 years, while in India, fantasy sports was introduced just over 20 years ago," it said.

India's surging user base of about 18 crore will rise to about 50 crore users by FY27, according to the report. This can be attributed to improving digital infrastructure, investments, the introduction of new sports and leagues on existing platforms, the rise of new platforms, increasing rural digital penetration and upcoming regulatory clarity, it said.

Between FY18 and FY22, fantasy sports platforms also contributed Rs 4,500 crore as taxes to the government, the report said. Of these, approximately Rs 2,800 crore were contributed as GST. "This is expected to surge to a cumulative Rs 17,500 crore accrued between FY18 and FY27, per the current tax regime."

In addition to GST, fantasy sports platforms also do tax deductions at source on winnings on their platforms and contribute to the economy by way of corporate taxes. According to industry estimates mentioned in the report, a cumulative amount of Rs 1,700 crore has been contributed in this manner between FY18 and FY22. The revenue to the exchequer is expected to reach an accumulated Rs 30,500 crore between FY18 and FY27, as per FIFS estimates.

The sector attracted cumulative investment of Rs 15,000 crore until FY22, which is likely to cross Rs 25,000 crore by the end of 2024, the report said. These investments have come from prominent names such as Sequoia Capital, Elevation Capital, Accel, Kalaari Capital, and Tiger Global Management, among others.

The total valuation of the fantasy sports market stands at an enterprise value of Rs 75,000 crore so far, according to FIFS and Deloitte.