India’s sports activities know-how trade is on an upward trajectory, with projections indicating it can develop from Rs 26,700 crore in FY24 to Rs 49,500 crore by 2029, at a 13 per cent CAGR. A brand new report, Beyond the Field: India’s Sports Tech Revolution, launched by the Federation of Indian Fantasy Sports (FIFS) and Deloitte, highlights how know-how is reshaping the nation’s sports activities panorama.
While fan engagement, sports activities knowledge, and foundational tech are all taking part in key roles on this evolution, fantasy sports activities (FS) has been the trade’s greatest driver. However, latest tax adjustments have put a dent in its progress, forcing firms to rethink their methods. The report means that whereas sports activities gaming stays a powerhouse, it’s at a regulatory crossroads, with the appropriate insurance policies wanted to unlock its full potential.
Fantasy sports activities: A pacesetter slowing down
For years, fantasy sports activities (FS) has been on the coronary heart of India’s sports activities tech increase. In FY24 alone, the sector generated Rs 9,100 crore, making it the most important contributor to the trade. Millions of Indian sports activities followers have turned to FS platforms, utilizing their data of cricket, soccer, and different sports activities to create fantasy groups and compete based mostly on real-life match performances.
However, the trade is now feeling the warmth. The introduction of a 28 per cent GST on deposits (as an alternative of the earlier 18 per cent on Gross Gaming Revenue) has considerably impacted revenues, with firms absorbing almost 50 per cent losses on their margins. The report predicts a ten per cent decline in FY25 and a extra modest 7 per cent CAGR progress till FY29, a stark distinction to the 30 per cent progress price projected earlier for FY22-FY27.
Joy Bhattacharjya, Director General of FIFS, acknowledged the trade’s unsure future, noting that FS has lengthy been an emblem of sports activities fandom in India, making the expertise extra immersive and interesting. He additionally careworn that if India is to completely harness sports activities know-how, it should create a viable tax system and clear rules that permit innovation to thrive.
He additional added, “For years, the FS industry has reflected the passion of sports fans, making the sports experience more engaging and immersive. As the industry stands at regulatory crossroads, it is imperative that India embraces the power of sports technology and encourages innovation through appropriate policies and regulations.”
Gaming’s impression: More than simply enjoyable and video games
The rise of fantasy sports activities, esports, and digital gaming has not solely remodeled fan engagement, but additionally had a serious financial impression. According to the report, the FS sector alone is anticipated to create 17,500 new direct and oblique jobs by FY27. Additionally, these platforms contribute considerably to authorities income, with Rs 5,800 crore paid in taxes from FY18-FY23.
Prashanth Rao, Partner at Deloitte India, believes that gaming is taking part in a much bigger function in India’s sporting tradition than ever earlier than. He said that digital improvements have created immersive fan experiences and expanded multi-sport curiosity throughout completely different demographics, turning sports activities gaming right into a mainstream leisure class.
Despite the present slowdown, FS stays a significant piece of India’s sports activities economic system, influencing promoting, sponsorships, and fan engagement methods. With tens of millions of customers actively taking part in fantasy leagues, the trade has efficiently constructed a digital-first, data-driven sports activities ecosystem that’s shaping the way in which followers work together with their favorite video games.
The highway forward: Can fantasy sports activities bounce again?
While the fantasy sports activities market is going through hurdles, there may be nonetheless loads of optimism for the long run. The Draft National Sports Policy 2024 has acknowledged the function of know-how in sports activities growth, and trade leaders are hopeful {that a} balanced regulatory method may help the sector regain momentum.
The report means that the subsequent part of progress will come from extra innovation in areas like AI-driven staff choice, real-time analytics, and enhanced in-game experiences. Furthermore, with elevated smartphone penetration, cheaper knowledge, and a rising esports tradition, sports activities gaming is anticipated to evolve past conventional fantasy leagues.
For fantasy sports activities platforms, survival will rely on adapting to new taxation buildings, creating extra participating experiences, and discovering various income streams. If regulatory readability is offered and gaming-friendly insurance policies are launched, India’s sports activities tech trade may nonetheless realise its full potential, protecting tens of millions of followers engaged and the economic system thriving.
