Indian sports activities tech, set to develop to Rs  49.5K Cr ’29 pushed by fantasy sports activities, faces a bumpy trip – Firstpost

India’s sports activities know-how business 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, Past the Subject: India’s Sports activities Tech Revolution, launched by the Federation of Indian Fantasy Sports activities (FIFS) and Deloitte, highlights how know-how is reshaping the nation’s sports activities panorama.

Whereas fan engagement, sports activities information, and foundational tech are all enjoying key roles on this evolution, fantasy sports activities (FS) has been the business’s largest driver. Nevertheless, current tax adjustments have put a dent in its development, 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 suitable insurance policies wanted to unlock its full potential.

Fantasy sports activities: A frontrunner 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 biggest contributor to the business. Tens of 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 primarily based on real-life match performances.

Nevertheless, the business 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 Income) has considerably impacted revenues, with firms absorbing practically 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 development till FY29, a stark distinction to the 30 per cent development price projected earlier for FY22-FY27.

Pleasure Bhattacharjya, Director Normal of FIFS, acknowledged the business’s unsure future, noting that FS has lengthy been a logo of sports activities fandom in India, making the expertise extra immersive and interesting. He additionally confused that if India is to completely harness sports activities know-how, it should create a viable tax system and clear rules that enable innovation to thrive.

He additional added, “For years, the FS business has mirrored the eagerness of sports activities followers, making the sports activities expertise extra partaking and immersive. Because the business stands at regulatory crossroads, it’s crucial that India embraces the facility of sports activities know-how and encourages innovation by way of acceptable insurance policies and rules.”

Gaming’s impression: Extra than simply enjoyable and video games

The rise of fantasy sports activities, esports, and digital gaming has not solely reworked fan engagement, but additionally had a significant financial impression. In accordance with the report, the FS sector alone is anticipated to create 17,500 new direct and oblique jobs by FY27. Moreover, these platforms contribute considerably to authorities income, with Rs 5,800 crore paid in taxes from FY18-FY23.

Prashanth Rao, Associate at Deloitte India, believes that gaming is enjoying an even bigger function in India’s sporting tradition than ever earlier than. He acknowledged 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.

Regardless of the present slowdown, FS stays an important 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 business has efficiently constructed a digital-first, data-driven sports activities ecosystem that’s shaping the best way followers work together with their favorite video games.

The street forward: Can fantasy sports activities bounce again?

Whereas the fantasy sports activities market is going through hurdles, there may be nonetheless loads of optimism for the longer term. The Draft Nationwide Sports activities Coverage 2024 has acknowledged the function of know-how in sports activities improvement, and business leaders are hopeful {that a} balanced regulatory strategy might help the sector regain momentum.

The report means that the following section of development will come from extra innovation in areas like AI-driven workforce choice, real-time analytics, and enhanced in-game experiences. Moreover, with elevated smartphone penetration, cheaper information, 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 partaking experiences, and discovering different income streams. If regulatory readability is offered and gaming-friendly insurance policies are launched, India’s sports activities tech business might nonetheless realise its full potential, retaining tens of millions of followers engaged and the economic system thriving.