Table of Contents:
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Quick Summary
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Understanding Fantasy Sports and Its Origin
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Growth and Evolution of Fantasy Sports Over the Years
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Top Sports to Consider for Your Fantasy Sports Business
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Identifying Your Target Audience and Analyzing the Indian Market
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Reaching Masses Via Advertising
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The Correlation Between Sports Viewership and Business Growth in India
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Top Competition in the Indian Fantasy Sports Market
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Is Now the Right Time to Start a Fantasy Sports Business in India?
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Is fantasy sports business legal in India?
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Conclusion
Quick Summary:
Everyone will be familiar with the term “Sports”, but it’s not the same for “Fantasy sports”. Fantasy sports app is an online based mobile application where the user virtually competes against other user’s virtual teams made of players based on real life athletes and their data. Based upon the application or the platform in which you’re playing, the interface, rules and rewards changes. A deep analysis in order to clarify one’s mind before starting a fantasy sports business in India.
Understanding Fantasy Sports And Its Origin
The origin of fantasy sports goes way back in the time machine. First ever fantasy sports (kind of) was played in 1866, which allowed participants to simulate the game by propelling a coin into slots on a wooden board. After a point, people started playing it in a different way, as they were trying to predict the outcome of the match events by rolling a pair of dice. After many years, It was officially started in 1998 under the name of “Fantasy Sports Trade Association” in the United States and Canada. It has been renamed to “Fantasy Sports & Gaming Association'' since then.
In today’s world, there are many fantasy sports applications in existence such as ESPN fantasy sport app, Fantasy Premier league app etc. They act as a great engagement platform for the sports audience all over the world via many aspects. This should give you a basic understanding on what fantasy sports is along with its origin. Now, the question is, How to start a fantasy sports business in India and is it the right time? We will certainly discuss the business as well as the legal aspects for those attempting to start a fantasy sports business below, and don't worry. You will be convinced to start one by the end of this blog.
Fantasy sports scene in India is a bit different when compared to the other countries. The sport which is famous in India is different from other countries. So, before starting the business in India, it is important to learn and understand the dynamics of it in India in depth. While Soccer, American Football and Basketball are the most popular entertainment in the other countries, the Indian market is a bit different. Cricket has become an integral part of Indian culture and with the people of India. Even Though there are other sports in India, the one which attracts the masses is basically cricket. With a multi million dollar cricket board which has many players who are amongst the best in the world, cricket has become an unstoppable force in India. For companies hoping to enter this active sector, knowing these dynamics is very essential. When thinking about fantasy sports app development↗ in India, cricket will be the major draw. creating a fantasy sports app catered to the Indian market calls for a strong awareness of cricket's cultural influence and tastes. Aligning your fantasy sports app development with these local insights can help you build a fascinating and interesting platform that appeals to the large population of cricket-loving India.
Every important match that happens in India garners a whopping number in viewership. For example, the recent T20 world cup match which happened between India and Pakistan, reached an all time record of 18 millions viewers online via the streaming platform named HOTSTAR. All this rise in popularity for cricket has directly affected the player base in fantasy sports application in a positive way. Now let’s dive in and see it in-depth.
Growth And Evolution Of Fantasy Sports Over The Years
Fantasy sports started as a niche platform in India and then it got widely popular alongside the ever expanding fan base for cricket. A game which was basically started back in 1930 where a bunch of men rolled a pair of dice to predict the match events has evolved over years. It has become an out'n out mobile application based game where a player meticulously puts a virtual team together in order to compete against the other players playing over the mobile application to win exclusive prizes and cash rewards which depends upon the platform where one is playing.
When it comes to India, one of the main reasons for the surge in player base is because of the massive boom of the Internet users and smartphone users over the years. The Internet users and the smartphone users were once a niche thing and from there, it has rapidly developed alongside the technological advancements in India. The number of Internet users in India back in 2015 was 14.9% of the total population, but in 2022 it has become 47%, which is a massive growth for a 7 year period difference. By 2022, smartphones will account for 44% of total Internet traffic, up from 18% in 2017. The number of smartphone users is expected to double to 829 million by 2022 from 2017, according to a new Cisco report.
People started implementing the “via online” methodology in almost every industry across the nation in order to cut the cost expenditure and to save time. Fantasy sports is one of many things, to which this massive surge of internet usage turned out to be a positive factor. For example, in 2015, the player base for platform application in India was 2 million registered users. But in 2022, it has increased massively reaching 130 million registered users. This growth is a clear sign that the industry is blooming rapidly, especially in India. Cricket’s popularity doesn’t seem to slow down any time soon and will remain as the highest contributor to the overall revenue of the fantasy sports industry at least for the next few years.
According to Joy Bhattacharjya, the director of the Federation in Indian Fantasy Sports (FIFS), the online skill gaming industry forms a key part of India’s high potential AVGC industry (Animation, Visual effects, Games and Comics) and it is already attracting a large portion of FDI. (Foreign Direct Investment). Now, fantasy sports is also considered to be an online based skill game instead of a “Game of chance”. This should give you a basic idea on the bright future that is awaiting the fantasy sports industry especially in India. It’s possible to crack the engagement platform's market in India if you understand the dynamics of the nation. Observe the market and you will clearly see those signs too.
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Apart from cricket, there are other sports which have a decent player base and make a decent portion of revenue contribution to the fantasy sports industry in India. Some of them are Football, Kabaddi, Basketball, Hockey, Tennis and others. Hockey is officially the National Sport of India and that automatically garners attention towards the fantasy leagues involving hockey. Next to Kabaddi, football has a massive fan base in India especially in states such as Kerala, West Bengal, Goa and Manipur. Kolkata is considered to be the home of Indian Football and these factors directly reflect in the particular industry across the nation.
So, before starting a fantasy sports business in India, knowing about these aspects will definitely help you in planning. For a profitable and safer fantasy business, cricket is still the safest and best bet, but it is important to understand the market structure so that one can make informed decisions based on their own thoughts. Next to football and hockey comes Kabaddi, which is a well-recognized sport across the nation. The player base is smaller compared to the other big sports, but it still maintains a respectable number for its standards. Following this, it is also important to know the target audience for fantasy sports in India, especially if you’re considering fantasy cricket app development↗ to capitalize on the popularity of cricket in the country.
Identifying Your Target Audience And Analyzing the Indian Market
With almost 130 million registered users in India, it is important to know the demography among the users. This will lead us to a better understanding of the demography. In India, the major portion, that is 59% of the demographic, is mostly men who are between the age of 25 - 40. This has to do with the increase in internet users over time within that age group. Fantasy sports is usually seen as a game targeting the male audience, but surprisingly, the female player base has seen a steady rise to 33% of the total registered users. This gives us a clear idea about the target audience in India.
The revenue for fantasy sports in India is massive. The Indian market for it is valued at 346 billion as per 2021 and it is predicted to increase even more in the next 10 years. Things can go the other way too, but based on the current scenario, it doesn’t seem like it's market in India is going to slow down any time soon. If the female player base also raises as we predicted, this industry might become an enormous sector when it comes to AVGC industry. (Animation, Visual effects, Games & comics). Based on all these factors, we can conclude that the target audience in India is crystal clear and the market is not going numb any time soon. Let’s buckle up for what comes next.
Reaching Masses Via Advertising
So, we know the demography. We analyzed the target audience along with the in’s and out’s of the market. Now the next big task is to take the product you create to each and everyone across the nation and the best way to do it these days is via clever advertising and marketing. This might sound vague, but no issues, I will try to make it clear for you. Anything and everything these days, has to be marketed well to attain success.
A brand needs to plot out strategies and ideas when it comes to marketing and advertising its product and it is no exception for the fantasy sports industry. For example, the market leading brand “Dream 11” , has partnered with Mahendra Singh Dhoni and other star players to feature in the advertisements related to Dream 11. An advertisement featuring one of the most influential cricketing legends will automatically turn heads across the country. His persona and personality is loved by Indians majorly and him featuring in an advertisement for a product will automatically make a viewer decide to give it a try.
Apart from sports people, companies have also started to rope in famous celebrities such as Actors, Social media influencers etc to promote their product to the wider masses. The old school way of advertising is not the same anymore and the marketing sphere has evolved a lot in the past few years. Voting campaigns are held over social media, movie promotions are done over social media and so on.
Marketing has taken different shapes and forms over the years and mobile marketing is blooming largely at the moment. Mobile marketing is any advertising activity that promotes products and services via mobile devices, such as tablets and smartphones. It makes use of features of modern mobile technology, including location services, to tailor marketing campaigns based on an individual's location. So, marketing and advertising one’s product is very important as it is the only way to take your product to every doorstep and never ignore that part.
The Correlation Between Sports Viewership And Business Growth In India
The viewership has increased at a massive rate in the last 10 years. As stated before, a record breaking number of 18 million viewers tuned in to spectate the India vs Pakistan, a T20 world cup match which happened in 2022. The viewership number directly tells us the popularity the sport has in India and this resonates in the fantasy sports player base too. Most of these things are happening as a result of the surge in internet users in the past few years. One of the leading business enterprise “Reliance”’s venture into the telecommunication industry happened back in 2007 in the name of “JIO”. Jio entered the market with a “Free service for all” scheme and this instantly turned heads among the consumers.
Even Though the scheme was planned to be a limited time offer, people immediately started jumping into the bandwagon and moved their services from other telecom giants to Jio. With Jio entering the market, the number of internet users boomed massively as there was no cost involved in the process of using the internet. The surge in the number of internet users in India started there and from there it never stopped till date and doesn’t seem like stopping any time soon. This growth in internet users is one of the main reasons why the fantasy sports business has become a phenomenon in the county.
More people started consuming sports related content online and more people started engaging in online gaming. A business of 346 billion is a mammoth of a number and it couldn’t be possible without all the above mentioned moments that happened in the past decade. So now, as you’ve understood the business side, it is also important to know how our competitors are doing in the industry. Know your opponent to bring out the better in you.
Jio is the largest mobile network operator in India and the third largest mobile network operator in the world with over 42.62 crore.
Top Competitors In The Indian Fantasy Sports Market
So, before starting your own application based business in India, it is wise to know the other competitors who are in the nation so that you can play your strategies according to them. The industry leading names in India are,
- Dream 11
- MPL - Mobile Premier League
- Cric Play
- MyTeam11
- Fancy 11
Among these, Dream 11 is currently the industry leading name which made over 270 million USD in the 2019-2020 period. The company has become an icon in the industry with multiple celebrity tie ups and well made advertisements. But when it comes to Dream 11, it involves real time money at stakes while playing a match. You can place up to 3 withdrawal requests a day i.e. a minimum of Rs. 50 and a maximum of Rs. 1 Crore.
Some of the fantasy sports applications in India involve real-time betting while playing a match against an opponent. Losing such matches will result in losing money, and this might create a sheer urge in one’s mind to win the money back by playing again, which is basically betting the same money again. This could become an addiction after a while, but from a business standpoint, this definitely benefits Dream 11. Remember, they have become one of the official sponsors of IPL T20. Things like this, still makes a spark in the debate whether fantasy sports are a “game of skill” or a “game of chance”, but that’s a topic for later. Heads up and let’s move on to see whether this is the right time to make hay as the sun seems to shine bright.
Waseem Raja became a millionaire overnight when he won Rs 2 crores on an online fantasy cricket platform, Dream 11.
Is This The Right Time To Start A Fantasy Sports Business In India?
After all this time, you could have already come to the conclusion. And, yes! It’s definitely the right time to start a business as the industry is rapidly booming alongside the massive growth of the country in terms of technology and foreign direct investment (FDI). Risk is definitely involved in starting any business.
Best thing is to learn all the in’s and out’s of the industry which you are going to get in prior and I hope that all the things mentioned above gave you a clear cut idea about the industry. As Elon Musk once said, “Take risks now and do something bold. You won’t regret it”, there is definitely a great reward for the risk you take and whether to grab it or lose it is based upon how you progress
Also, Check Our Other Blogs : All ABOUT FANTASY SPORTS↗
Is Fantasy Sports Business Legal In India?
With the advent of technology, the gaming industry has witnessed a paradigm shift given the increase in internet users. This has paved a path to online gaming like rummy, poker, and other new-age engagement platforms. Gambling is deep rooted in Indian culture, references go way back in time machine to the days of “Mahabharata”.
The term ‘Gambling’ is understood as the ‘act of wagering or betting for money’s worth’. Section 12 of the Public Gaming Act provides that “game of mere skill” does not fall under the ambit of gambling. Further the 276th Law commission report recommends that skill – based games may be exempted from the ambit of gambling. However, no specification was made with respect to fantasy games qualifying as a ‘game of skill’.
Fantasy Sports applications are a globally recognized tool for fan engagement, as they provide a platform for all sport lovers, to engage in their favorite sport along with friends and family.
A challenge to this verdict was dismissed by the Supreme Court of India as well. In August 2021, the Supreme Court said that the game requires considerable skill and judgment and are, therefore, legal. The success of fantasy games depends on the user's knowledge, attention, and execution.
It’s still ruled out to be a Legal business at the end of the day and that’s all we need to know at the moment.
Conclusion
We have come a long way through these topics and after all this time, you mostly should have a clear idea on what fantasy sports is and how the business is blooming in India. You wanted to know how and whether to start a business around it and In’s and out’s have been provided to you. Now it’s your choice to either do it or decide the other. So, what will be your decision?
At SCIFLARE, we know how to start a fantasy sports business successfully, and our team is ready to share their expertise to bring your ideas to life. Contact our consultants to get started on your custom fantasy sports app development journey.