India’s sports technology industry is on an upward trajectory, with projections indicating it will grow from Rs 26,700 crore in FY24 to Rs 49,500 crore by 2029 at a 13 percent CAGR. A new report, Beyond the Field: India’s Sports Tech Revolution, released by the Federation of Indian Fantasy Sports (FIFS) and Deloitte, highlights how technology is reshaping the country’s sports landscape.
While fan engagement, sports data, and foundational tech play key roles in this evolution, fantasy sports (FS) have been the industry’s most significant driver. However, recent tax changes have hindered its growth, compelling companies to reconsider their strategies. The report posits that sports gaming, despite its continued dominance, finds itself at a critical regulatory juncture, necessitating the implementation of appropriate policies to realize its full potential.
Fantasy sports: A leader slowing down
For years, fantasy sports (FS) have been at the heart of India’s sports tech boom. In FY24 alone, the sector generated Rs 9,100 crore, making it the most significant contributor to the industry. Millions of Indian sports fans have turned to FS platforms, using their knowledge of cricket, football, and other sports to create fantasy teams and compete based on real-life match performances.
However, the industry is currently facing significant challenges. The introduction of a 28 percent GST on deposits (instead of the previous 18 percent on Gross Gaming Revenue) has significantly impacted revenues, with companies absorbing nearly 50 percent losses on their margins. The report predicts a 10 percent decline in FY25 and a more modest 7 percent CAGR growth until FY29, a stark contrast to the 30 percent growth rate projected earlier for FY22-FY27.
Joy Bhattacharjya, Director General of FIFS, acknowledged the industry’s uncertain future, noting that FS has long been a symbol of sports fandom in India, making the experience more immersive and engaging. He also stressed that if India is to harness sports technology fully, it must create a viable tax system and clear regulations that allow innovation to thrive.
He added, “For years, the FS industry has reflected the passion of sports fans, making the sports experience more engaging and immersive. Given the current regulatory landscape, India must harness the potential of sports technology and foster innovation by implementing suitable policies and regulations.
Gaming’s impact: More than just fun and games
The rise of fantasy sports, esports, and digital gaming has transformed fan engagement and had a significant economic impact. According to the report, the FS sector alone is expected to create 17,500 new direct and indirect jobs by FY27. Additionally, these platforms contribute significantly to government revenue, with Rs 5,800 crore paid in taxes from FY18 to FY23.
Prashanth Rao, Partner at Deloitte India, believes gaming plays a more significant role in India’s sporting culture than ever. He stated that digital innovations have created immersive fan experiences and expanded multi-sport interest across different demographics, turning sports gaming into a mainstream entertainment category.
Despite the slowdown, FS remains a vital part of India’s sports economy, influencing advertising, sponsorships, and fan engagement strategies. With millions of users actively participating in fantasy leagues, the industry has successfully built a digital-first, data-driven sports ecosystem shaping how fans interact with their favorite games.
The road ahead: Can fantasy sports bounce back?
While the fantasy sports market faces hurdles, there is still plenty of optimism for the future. The Draft National Sports Policy 2024 has acknowledged the role of technology in sports development, and industry leaders are hopeful that a balanced regulatory approach can help the sector regain momentum.
The report suggests that the next growth phase will come from more innovation in AI-driven team selection, real-time analytics, and enhanced in-game experiences. Furthermore, with increased smartphone penetration, cheaper data, and a growing esports culture, sports gaming is expected to evolve beyond traditional fantasy leagues.
Fantasy sports platforms’ survival will depend on adapting to new taxation structures, creating more engaging experiences, and finding alternative revenue streams. If regulatory clarity is provided and gaming-friendly policies are introduced, India’s sports tech industry could still realize its full potential, keeping millions of fans engaged and the economy thriving.
