The Indian online gaming industry, riding a rapid growth in digital infrastructure, is reported to reach ₹ 11,900 crore in financial year 2023. The industry that has reached ₹ 4400 crore in the last fiscal from ₹2000 crore in 2014 will grow at 22% CAGR (compound annual growth rate), according to a KPMG report.
The report – The Evolving Landscape of Sports Gaming in India – further adds as non-cricket sports leagues in India are witnessing increasing traction, the fantasy cricket content users have come down from 95% of the survey group users to 85% in the past three years. It will further decline to 65% over the next three years.
Last year, there were 250 million gamers and 250 game developing companies. The number of fantasy sports operators is up from 10 in 2016 to 70 in 2018.
The report highlights the findings of a survey on fantasy sports users to understand their preferences and playing patterns
The Indian Federation of Sports Gaming (IFSG) and KPMG India launched a report on the ‘The Evolving Landscape of Sports Gaming in India’ at its second event – GamePlan 2019. The report provides an overview of the online gaming industry with a focus on fantasy sports and eSports.
KPMG has reportedly conducted a survey on 336 fantasy sports users to understand their preferences and playing patterns. For around 50% of the respondents, the ‘ability to manage teams virtually’, ‘remain connected with the sport’ and ‘utilisation of sports knowledge’ was important motivators for engagement. Out of those 336 users, 71% of the respondents played fantasy cricket followed by 54% playing football. The non-cricket sports leagues in India are witnessing increasing traction.
“With the rapidly growing digital infrastructure and emergence of new sports leagues, the Indian online sports gaming industry is witnessing a boom which shows no sign of slowing down. Exponential growth provides users with easy access to a vast variety of sports gaming apps, formats and genres. This could lead to potential confusion and misjudgement among players in choosing the right platform to engage with their favourite sport,” says IFSG president John Loffhagen.
“Online gaming in India is seeing increased traction due to the growth of digital infrastructure, with fantasy sports emerging as an important segment in this space. With the number of fantasy sports operators growing rapidly and the number of users on fantasy sports platforms expected to cross 100 million by 2020, this segment has the potential to spawn a whole ecosystem around it, and could help deepen user engagement with their favourite sports,” adds Girish Menon, Partner and Head – Media and Entertainment, KPMG in India.
The Key Highlights:
- 74% of users play fantasy sports 1-3 times a week, with the majority playing once a week
- Around 20% of the respondents reported playing more than five times a week which indicates the growing traction of the genre in the country
- Across all age and income groups, ‘Fun and Excitement’ is the primary motivator for playing fantasy sports
- For around 50% of the respondents, the ‘Ability to manage teams virtually’, ‘Remain connected with the sport’ and ‘Utilisation of Sports knowledge’ were other important motivators for engagement
- The ‘Opportunity to win money’ was seen as one of the motivators for around 30% of respondents, however, this was only the 5th most important factor for engagement
- 54% of users play fantasy sports for free
- 46% of the respondents have played paid contests at least once in the last 12 months
- Important to note that only 25-30% of the spends on fantasy sports platforms come from the users’ pocket. 70-75% of the spends are re-investments coming from previous winnings, cash bonus or periodical promotional offers given by these platforms to their users
- Majority of users from top 7-8 cities of the country were found to be playing less frequently than some of the smaller cities in the country. Nearly 85% of the respondents from the major cities play fantasy sports 1-3 times a week as compared to nearly 70% of respondents from smaller cities who play more than four times a week on such platforms
- 71% of the respondents played fantasy cricket followed by 54% playing football. The non-cricket sports leagues in India are also witnessing increasing traction