According to a recent report by Deloitte and the Federation of Indian Fantasy Sports (FIFS), India’s fantasy gaming industry is expected to see massive growth in the coming years. By FY27, the industry could generate more than $3 billion (Rs 25,240 crore), up from $828 million (Rs 6,800 crore) in FY22. In addition to this revenue growth, the user base is expected to nearly triple, from 180 million (18 crores) to 500 million (50 crores). Overall, the industry is predicted to grow at a compound annual growth rate of 30% until FY27.
India currently has over 300 fantasy sports platforms, making it one of the fastest-growing markets globally. Interestingly, most of the growth is coming from tier II and tier III cities. The report attributes this growth to a combination of infrastructural and market-led factors. The digital infrastructure is improving, and this has led to an increase in digital payments. The introduction of Jio, a mobile network operator by billionaire Mukesh Ambani-led Reliance Group in 2016, allowed internet services to reach the deep hinterlands of India, where fantasy platforms are making the lion’s share of the revenue.
The Indian government recently introduced new regulations for online gaming, which require the appointment of Self-Regulatory Organisations (SROs) consisting of industry experts, child experts, psychology experts, and educationists, among others. The SROs will determine which online games are permissible to be played. The government is only regulating real money games that involve wagering, and all other games will be permissible.
India is making steady progress in the video gaming market. Currently, China holds the top spot with an estimated 744 million gamers generating revenues of $45.8 billion in 2022. Meanwhile, India’s gaming sector generated $2.8 billion in revenue with a total user base of around 420 million. In 2016, India’s total video game revenue was only around $543 million. While some still consider the Indian gaming sector to be in its infancy, the industry has shown tremendous growth potential and is set to become a significant player in the global market in the years to come.
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