Study says Fantasy Sports to Contribute to Growth of Sports in India

Fantasy Sports are gaining huge popularity in India due to unlimited internet from the service providers and the adoption of Smartphones. According to a study, fantasy sport is also contributing to the growth of sports in the country.

In India, cricket is known for dominating the sports arena, but at present, the new generation is developing interest in other sports, including hockey, football, kabaddi, basket, baseball, and volleyball. According to a white paper by Indiatech, the credit of growing interest towards other sports in the emerging generation partly goes to fantasy sports platforms.

The fantasy sports companies don’t only bring large brands and celebrities together but also promote sports at various virtual places uniquely. Fantasy sport is neither gambling or betting, but it depends on seasonality, actualities, and availability of real-time sports matches. One of the other reasons that don’t make it an addictive form of play.

Revenue and Taxes of Fantasy Sports Operators

The Indian fantasy sports market has seen exceptional growth in a span of a few years. According to FIFS-KPMG 2020 report, the gross revenue of fantasy operators stands at Rs. 24,000 crore. The revenue figure was Rs. 920 crores in 2019, which means the revenue increased almost three times in a year.

The study also says that fantasy sports platforms are attracting considerable foreign investment. According to the FIFS report, these platforms have attracted Rs. 1,500 crore of foreign investments between 2018 and 2019.

Online fantasy operators also deduct the applicable taxes before distributing the prize money among the winners. The tax deducted in FY 2019 was Rs. 93 crores while it has increased to Rs. 250 crore in FY 2020.

The fantasy platforms have also enhanced the merchandise business, online payment apps, and many other businesses are looking forward to the fantasy platforms to sell their services and products.