Fri Nov 15 12:35:06 IST 2024: ## India’s Fantasy Sports Industry Faces Headwinds Despite Growth Projections
**New Delhi, India -** Despite a 28% Goods and Services Tax (GST) imposed on player entry fees, India’s online fantasy sports industry is projected to grow at a 7-9% CAGR, reaching $1.6 billion by FY 2030, according to a joint report by Google India and Deloitte. However, this growth is significantly slower than the 30% CAGR initially projected before the tax was implemented.
The report, titled “Think Sports,” highlights the impact of the new tax and legal uncertainties on the industry. Deloitte partner Prashanth Rao acknowledged the slowdown, stating that the industry “was flying at a very fast pace, but we expect that there will be a slight bit of recollection time at this point as the industry reorganises itself.”
Despite the challenges, the report notes a continued rise in the number of fantasy sports players, with the user base expected to reach 430 million by the end of the decade. The report also highlights the deepening engagement of users, with 1 in 2 users now considered fanatics, compared to 1 in 3 previously.
While the report focuses on the industry’s positive outlook, it omits concerns regarding online gaming addiction among youth. The central government is reportedly considering “China-like” time limits and curbs to address this issue.
The report also projects a 25% CAGR for India’s esports industry, growing from $40 million to $200 million by FY 2030. The number of esports players and teams has surged in recent years, with a 733% and 108% increase respectively between 2020 and 2023. This growth has also attracted more brands to invest in esports, with a 122% increase in brand investments.
Overall, the report forecasts a robust future for the Indian sports ecosystem, with a projected value of $130 billion by 2030. This growth will create 10.5 million jobs and contribute $21 billion in indirect tax revenue.
The report attributes this growth to factors such as rising government investments, the trend of multi-sport culture, wide digital adoption, and the availability of quality sports content. It also acknowledges the increasing importance of digital platforms like YouTube in sports consumption, with 93% of Gen Z fans engaging with sports content digitally.
The report concludes with a positive outlook for the sports tech sector, predicting a value of $1 billion by 2030, driven by fan engagement and innovation.
First Piper 