India’s fantasy and sports betting sector is experiencing a significant boom, with Indian apps leading the charge. This surge in popularity is not just a passing trend but a substantial shift driven by increasing user engagement, favourable legal rulings, and significant economic contributions.
The fantasy sports industry in India has seen remarkable growth, with the market expanding by 31 percent to Rs 6,800 crore in FY22. This growth is not an isolated phenomenon but part of a larger upward trajectory, with projections indicating that the market could reach a staggering Rs 25,240 crore by FY27.
This impressive growth is partly fuelled by the sheer number of fantasy sports platforms operating in India. With over 300 platforms catering to a user base exceeding 180 million people, the industry has managed to tap into the country’s vast potential.
Fantasy sports in India are primarily considered games of skill rather than chance. This distinction has allowed them to navigate the complex legal landscape more effectively. Various high courts, including the Punjab and Haryana High Court, have upheld this classification, ruling in favour of platforms like Dream11 and affirming that the game’s format involves considerable skill in team selection and strategy.
Economic contributions
The fantasy sports industry has not only entertained millions but also contributed significantly to the Indian economy. In FY22 alone, the sector contributed Rs 4,500 crore in taxes, a figure expected to rise to Rs 26,000 crore by FY27.
Moreover, the industry has been a magnet for foreign direct investment (FDI), attracting substantial amounts and generating high-skill jobs. The promotion of non-cricket sports in India has also been a notable achievement of fantasy sports platforms, with a majority of users reporting increased interest in new sports and leagues.
Despite its success, the industry faces challenges, particularly regarding regulatory clarity and compliance. The legality of online gaming varies by state, creating a complex legal environment for operators. However, the potential for growth remains strong, with increased investor confidence and new innovations driving the sector forward.
Fantasy sports betting, while a booming industry, is not without its ethical concerns. The involvement of large companies and substantial money has led to debates about exploitation and greed, with some arguing that fantasy sports are veering dangerously close to gambling. This concern is particularly relevant when considering the demographic targeted by these platforms, often young individuals aged 18-35. The need for strong internal governance and self-regulation is paramount to prevent exploitation of this vulnerable group.
Another significant concern is the potential for addiction. Individuals may find themselves lying to cover up their gambling activities, accruing high debt and unpaid bills due to the need to fund their gambling, neglecting family and work obligations, and in extreme cases, resorting to criminal activity to support their gambling.
Legislation varies across Indian states
The integrity of sports is also at stake. There are concerns that the involvement of betting could lead to compromised games, whether through overt bribes to shave points or throw games, peer pressure, or athletes themselves being in debt and having to shave points to cover their own debts.
The legal and regulatory challenges are another major hurdle. The legality of online gaming varies by state, creating a complex legal environment for operators. In the rush to legalize and stake a claim on potential revenue, states may not be performing their due diligence on the far-reaching implications of legalization.
Lastly, there are moral concerns. While nearly two-thirds of Americans don’t believe it’s morally wrong to bet on sports, almost half think sports betting shouldn’t be legalized nationwide.
These concerns underscore the need for robust regulations, transparency, and ethical practices in the industry. It’s crucial for stakeholders to address these issues to ensure the sustainable and responsible growth of fantasy sports betting.
The future of fantasy sports in India looks promising. With its ability to engage millions of users, navigate legal complexities, and contribute significantly to the economy, the industry is expecting a steady and sustained growth. However, it must continue to address regulatory challenges and innovate to keep the momentum going. As it stands, Indian apps continue to dominate the fantasy sports and betting sectors, marking a new era in the country’s digital entertainment landscape.
