IPL 2023is expected to increase the turnover of fantasy sports companies to ₹ 2,900-3,100 crore.
- Grow in fantasy
sports platformswill be driven by increasing adoption in tier 2 cities.
- Tier-2 and beyond cities account for over 80% of the user base.
Fantasy sports companies like Dream11, My11Circle and MPL will get a huge boost due to the ongoing Indian Premier League (IPL) 2023. These companies are expected to earn a gross gaming revenue of ₹2,900-3,100 crore in 2023.
According to a report by Redseer Strategy Consultants, the fantasy sports market has grown due to increased awareness of fantasy sports among people and increased marketing efforts by new companies.
The gross gaming revenue of fantasy sports companies is expected to increase by 30 to 35%, taking it to ₹2,900-3,100 crore by 2023. The report predicts that the average revenue per user (ARPU) will increase from ₹410 during IPL 2022 to ₹440 per user during IPL 2023.
In 2022, fantasy sports companies earned a gross gaming revenue of ₹2,260 crore, up from ₹1,460 crore in 2021, with a growth of 55%. In 2022, IPL recorded a viewing audience of 400 million TV viewers.
By 2022, 50% of users executing transactions came from tier 2 cities and 31% from tier 3 and beyond. Metro cities and Tier 1 cities contributed only 8% and 11% respectively.
Tier 2 cities to drive growth
According to Ujjwal Chaudhry, growth in the fantasy sports segment will be driven by greater adoption in tier-2 cities across the country and the cross-migration of users of other games.
Increasing internet penetration in tier-2 and outside cities is also expected to boost the industry. Reportedly, over 80% of users are from tier-2 and beyond.
“Solid growth in fantasy sports gaming will come from tier 2 cities, driven by increasing adoption of fantasy platforms and cross-migration of users from other games. Greater internet accessibility will boost the IPL economy,” said Chaudhry, partner at Redseer Strategy Consultants.
Government regulation to incentivize transaction users
The Indian government’s decision to create rules and regulations for Goods and Service Tax (GST) on real money gaming platforms (RMG) and Google allowing fantasy sports platforms on the Play Store will also help increase the number of transactions during IPL 2023.
“More and more efforts have been made to make platforms more secure and reliable for users. Measures such as RNG certification, secure payment gateways and fraud protection increase users’ trust in the platforms and then build users’ confidence to spend higher amounts on gaming,” said Saurav Kumar Chachan, Director of Redseer Strategy Consultants.
Prizes such as Audi cars and Mahindra Thar encourage users to spend more
In 2022, Dream11, a popular fantasy sports platform, offered rewards to its users such as Audi cars during IPL 2022, and My11Circle, another fantasy sports platform, offered the Mahindra Thar as a reward during World Cup 2022. These rewards entice users to deposit and spend more money to win these prizes.
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