Revenue of India's fantasy sports surges 24% during IPL 2023

The revenue generated by fantasy gaming platforms during Indian Premier League (IPL) cricket matches experienced a 24% increase compared to the previous year, reaching over 28 billion rupees ($342 million), a report by the Redseer consultancy said.

The report also highlighted that more than 61 million users actively participated in these platforms.

Fantasy gaming apps gained significant traction in India during the pandemic as people sought entertainment options from home.

Taking advantage of cricket's immense popularity, numerous new companies entered the market and introduced virtual leagues and contests in other sports such as soccer, further expanding the reach of these gaming platforms.

The IPL, one of the most followed sporting events in India, held matches from mid-March to end-May, attracting millions of viewers, while gaming app players launched their own virtual contests.

"Playing fantasy sports is becoming a craze in the country," said Saurav Chachan, director, Redseer strategic consultancy, noting 35% to 50% of the revenue of fantasy sports platforms was driven by IPL matches.

In a recent development, Dream11, a fantasy gaming company, secured a three-year contract to serve as the primary sponsor of India's national cricket team, replacing educational technology firm Byju's. The contract transition took place after Byju's previous agreement concluded in March.

In contrast to many other countries where betting is legal, gambling remains illegal in India. Consequently, fantasy sports apps have been promoted as "a game of skill" rather than chance.

These platforms offer users the opportunity to win substantial cash prizes based on their knowledge of the game, Chachan explained.

Over the past five IPL seasons since 2019, fantasy gaming apps have seen a compound annual growth of 18% of cash users every year, while total market revenue in the same period has crossed over $1 billion, according to industry estimates.

Redseer estimated the IPL's latest season attracted advertisements amounting 100 billion rupees ($1.2 billion) - 65% of which was earned by the Board of Control for Cricket in India (BCCI), its franchise and broadcasters, with the remaining 35% by traditional media and internet platforms.

(Reuters)