Indian fantasy sports revenue increased 24% during IPL 2023: Report

61 mn people participated in fantasy gaming during the T20 cricket tournament

Indian fantasy sports platforms increased revenue by 24 per cent to Rs 2,800 crore during the two-month long Indian Premier League (IPL) 2023 compared to Rs 2,250 crore the previous year, said a report on Tuesday.

The fantasy sports market has grown at a CAGR of 30 per cent since IPL 2019, said Redseer Strategy Consultants.

A fantasy sport is an internet game where participants assemble imaginary or virtual teams that are proxies of real players of a professional sport. Virtual teams compete based on the statistical performance of players in actual games. Popular fantasy gaming platforms in India include two out of the three gaming unicorns (firms with a valuation of over $1 billion): Dream11 and MPL.

 

A total of 61 million users participated in fantasy gaming during the T20 cricket tournament. IPL 2023, from March 31 to May 30, had a strong user acquisition engine, with 35 per cent of new users playing for the first time on the platforms. The influx led to an 11 per cent increase in cash users during the season, with the average spend per match of Rs 127 per user.

“The top 3 platforms captured 96 per cent of the market share during the IPL 2023, and had an average revenue of Rs 458 per user for the season. The excitement of IPL also trickled into non-IPL sporting events during the season, contributing to 13 per cent of the revenue,” said Ujjwal Chaudhry, partner at Redseer.

Also Read: India's fantasy sports industry to reach 500 mn users by FY27: Report
 

The average gross gaming revenue (GRR) during weekdays was 1.3x compared to weekends and peaked during the final match.

The report said that Mega Tables, which is the sum of all the highest prize pool tables in every match across the platforms, dropped in size by 30 per cent during weekends due to multiple matches on the same day. However, Mega Tables have a higher rake rate of 24 per cent, contributing 60 per cent to the revenue during the season.

“IPL is the most awaited sporting event, with fans across the country cheering for their favourite teams to take the coveted trophy home. The rush of live matches isn’t enough for the millions, so they take it to the fantasy league - a virtual game where the participants can create their own teams based on real-life players and virtual currency,” the report said.

Redseer estimates a total of Rs 10,000 crore was spent on advertisements in which BCCI, franchise, and broadcasters earned 65 per cent of the total spend as direct revenue. The remaining 35 per cent of indirect revenue was earned as ad revenue by social media platforms, traditional media, and other internet platforms.

The Indian fantasy sports industry has witnessed a prodigious rise in recent years. Revenue from the sector has grown 31 per cent to reach Rs 6,800 crore in financial year (FY) 2022. This figure is expected to cross Rs 25,240 crore by FY 2027 at a 33 per cent CAGR, according to a recent report by The Federation of Indian Fantasy Sports (FIFS) and Deloitte India.

With over 300 fantasy sports platforms (FSPs) and an estimated 180 million users, India is the fastest-growing fantasy sports market in the world. The sector, which is currently valued at Rs 75,000 crore, is projected to reach 500 million in the next five years.