This week on LEARNING OF THE WEEK, we will understand the business of fantasy sports and its evolution in India.
As the 2025 IPL season has kicked off, millions of Indians are not just watching cricket, they’re actively participating through fantasy gaming platforms. In a country where cricket transcends sport to become a religion, fantasy gaming has transformed passive viewers into strategic team owners, all while creating a multi-billion-dollar industry. The digital stadiums of Dream11, MPL and others now host over 300 Mn Indians who meticulously craft virtual teams, analyze player statistics, and experience the thrill of victory through their favorite cricketers’ performances.
India’s Booming Fantasy Sports Landscape
India’s fantasy sports sector has experienced a remarkable journey of growth and transformation, particularly post COVID. This burgeoning industry has its roots in the nation’s passion for sports, especially cricket, and has been fueled by technological advancements and increased smartphone penetration.
The sector’s expansion received an unexpected boost during the COVID-19 pandemic. While many industries struggled, fantasy sports thrived as people sought entertainment and engagement during lockdowns. As Piyush Choudhary, Director of Sales, South Asia at SportRadar, aptly noted, “Fantasy sports was good to have three or four years back, but now it’s a must-have of the sports industry, the economic industry, the job market, as well as the gaming market.“
The Legal Distinction: Skill VS Chance
A crucial element in the industry’s growth has been its legal classification as “games of skill” rather than gambling. On August 8, 2021, the Supreme Court of India officially declared fantasy sports legal, categorizing them as games of skill rather than games of chance.
This distinction has been reinforced by multiple High Court judgments:
- Rajasthan High Court (July 2021): Affirmed fantasy sports as games of skill based on the 276th Law Commission Report
- Bombay High Court (April 2019): Recognized fantasy sports as a legitimate skill-based industry
- Kerala High Court (February 2022): Determined fantasy sports as a game of skill under section 14(A) of the Kerala Gaming Act
This legal recognition has allowed fantasy platforms to operate legally in most Indian states, with exceptions in Telangana, Andhra Pradesh, Odisha, Assam, Nagaland and Sikkim, which have various restrictions or bans.
This legal clarity, coupled with the surge in digital adoption during the pandemic, has catapulted the fantasy sports sector to new heights. As of January 2025, the industry is valued at ~Rs.50,000 Cr, with over 300 Mn active users. The growth trajectory appears unstoppable, with market analyses projecting the India fantasy sports market to grow from $751 Mn in FY2023 to $3,424 Mn by FY2031, representing a robust CAGR of ~21%.
(Source: ET)
Established in 2017, the Federation of Indian Fantasy Sports (FIFS), has emerged as the primary self-regulatory industry body, playing a crucial role in setting standards and advocating for the sector’s interests. As the industry continues to evolve, it stands as a testament to India’s digital transformation and the power of innovation in sports engagement.
Dominance of Cricket
In the realm of fantasy sports in India, cricket stands as the undisputed king, mirroring its status as a national obsession. Sport’s overwhelming popularity has translated seamlessly into the digital arena, with cricket-focused fantasy platforms capitalizing on the nation’s fervent passion. This synergy between India’s cricket mania and fantasy gaming has created a perfect storm, propelling the industry to unprecedented heights and dominating the fantasy sports landscape. While fantasy platforms offer multiple sports, cricket commands an overwhelming share of user interest. Reports indicate cricket dominates India’s fantasy sports scene, with around 85% of users gravitating toward cricket-based fantasy gaming.
(Source: ET)
IPL: The Driving Force Behind Fantasy Sports Revenue in India
Within the realm of cricket-dominated fantasy sports in India, the Indian Premier League (IPL) stands as the crown jewel, serving as a powerful catalyst for revenue generation among fantasy gaming apps. This annual cricketing extravaganza not only captivates millions of fans but also provides a lucrative opportunity for fantasy platforms to capitalize on the nation’s cricket fervor. For Indians, IPL is not merely a cricket tournament but a 2-month festival that dominates conversations, media, and now, digital engagement. Fantasy platforms have brilliantly leveraged this cultural phenomenon, turning passive viewers into active participants who analyze pitch conditions, player form, and team strategies with newfound intensity.
For instance, during IPL 2025, fantasy gaming platforms anticipate a revenue boost of 25-30%, projecting earnings between $500 Mn and $525 Mn.
India’s fantasy sports industry has experienced remarkable growth, with over 300 platforms catering to ~300 Mn users, making it the fastest-growing market globally. Leading platforms like Dream11, MPL, My11Circle, and Gamezy dominate the space alongside other notable players such as Games24x7, MyTeam11, WinZO, Zupee, GamesKraft and Halaplay. Even fintech giant Paytm has entered the market with its platform, Paytm First Games, underscoring the sector’s rapid expansion and widespread appeal despite regulatory and operational challenges.
Young Guns Leading the Charge
The 25-40 age group represents the largest segment of fantasy sports users in India, accounting for ~56% of the user base. This group consists primarily of working professionals and young entrepreneurs with higher disposable income.
The under-25 age group follows closely, making up ~40% of users. This segment includes students and young professionals who are tech-savvy and primarily use smartphones to access fantasy sports platforms.
The above-40 age group represents the smallest segment, accounting for the remaining 3% of users.
As we delve into the intricacies of the fantasy gaming industry, understanding its revenue model and business operations becomes crucial.
Revenue Model and Business Operations
Fantasy cricket platforms in India typically operate on a freemium model with multiple revenue streams:
The basic gameplay remains consistent across platforms:
Fantasy cricket apps offer users two main ways to engage in contests:
1. Private Contests
Users can create exclusive rooms and invite friends to join. In these private contests, participants have the flexibility to set custom entry fees, decide the prize distribution, tailor the contest rules to their preferences. This option allows for a more personalized and social gaming experience among friends or colleagues.
2. Public Contests
Alternatively, users can join open contests that pit them against a global player base. These contests feature predetermined prize structures, set entry fees, standardized rules. Public contests offer the thrill of competing against a diverse group of players and the chance to win larger prizes.
Both options provide users with engaging ways to test their sports knowledge and team-building skills while adding an extra layer of excitement to watching matches.
(Source: Dream11, Left – Private Contest & Right – Public Contest)
In the realm of fantasy sports in India, one name stands out above all others: Dream11. Much like how Xerox became synonymous with photocopying and Colgate with toothpaste, Dream11 has become virtually interchangeable with fantasy gaming in the Indian market. This industry titan has not only captured the lion’s share but has also become the face of fantasy sports in the country.
Dream11: The Undisputed Market Leader
Founded in 2008, the platform only introduced freemium fantasy sports in 2012, focusing primarily on cricket-loving Indians. After overcoming initial financial and legal challenges, Dream Sports (Dream11’s parent company) achieved unicorn status in 2019, becoming India’s first fantasy sports unicorn.
(Source: News18)
The platform’s growth metrics are staggering:
(Source: ET)
Dream11’s prominence extends beyond its platform. It has secured significant sponsorship deals, including:
- Title sponsor for IPL 2020
- Front-of-shirt sponsor for Punjab Kings and Kolkata Knight Riders franchises
- Primary sponsor for Gujarat Titans
- Co-supporting sponsor with Jio Cinema for IPL 2024
(Source: Google)
Although, Dream11 holds a commanding ~90% market share in India’s fantasy sports industry, it faces intense competition from other major players. As the industry evolves, user retention has become the cornerstone of growth, with platforms striving to offer diverse services and innovative incentives to attract and retain users. This shift is evident in the increase in maximum winnings, which rose from Rs. 1 Cr in 2023 to Rs. 3 Cr in 2025, reflecting the fierce competitive landscape.
Advertising also plays a pivotal role in this battle for dominance. Dream11’s campaigns frequently features Bollywood stars like Aamir Khan and Ranbir Kapoor, alongside Indian cricket icons such as Rohit Sharma, Shreyas Iyer, and Jasprit Bumrah. Meanwhile, My11Circle has strategically partnered with emerging cricket superstars like Shubman Gill, Ruturaj Gaikwad, and Mohammad Siraj. These high-profile endorsements highlight the importance of maintaining visibility and user engagement.
To further bolster retention, companies offer incentives such as discounts for new or inactive users and reward points that can be redeemed for contest entries. Platforms have also diversified their offerings by introducing complimentary games and personalized rewards, ensuring users remain engaged.
Amongst all the growth and success, it has not been all bread and butter for the fantasy sports industry in India. Despite its remarkable expansion, the sector now faces a significant challenge that threatens to slow its momentum. Recent changes in GST regulations have emerged as a major headwind, casting a shadow over the sector’s future prospects. This shift in the tax landscape has forced companies to reassess their strategies and has sparked concerns about the industry’s continued expansion.
GST Impact: Navigating Regulatory Headwinds
As of October 1, 2023, online gaming, including both skill-based and chance-based games, is subject to a 28% GST rate on the full-face value. This represents a substantial increase from the previous 18% rate for skill-based games.
To illustrate the effect, let’s consider a typical contest scenario mentioned below:
The new structure requires platforms to pay nearly 8x more in GST for the same contest. These changes have created a challenging environment for the online fantasy gaming industry, with many companies struggling to maintain profitability under the new tax regime.
Dream11’s co-founder Harsh Jain described the tax demand as “unsustainable” with the company facing a Rs. 28,000 Cr GST liability. He also noted that the industry’s total available funds are far less than the retrospective tax demands. FIFS reported that fantasy sports companies have seen their margins shrink by ~50% as they absorb the increased GST impact. This has led to a projected 10% revenue contraction in FY25, with the industry’s growth rate reduced to a 7% CAGR for FY24–FY29, down from an earlier forecast of 21%. Additionally, smaller companies have been forced out of the market, while larger players like Dream11, MyCircle11 and MPL struggle to maintain profitability. The fantasy gaming industry has urged the government to reconsider its taxation approach. Proposals include taxing skill-based games at 18% GST on Revenue, aligning with global standards.
Closing Thoughts
As IPL 2025 unfolds across television screens and smartphones nationwide, fantasy cricket platforms stand ready to capture the imagination and wallet share of India’s cricket enthusiasts. From Dream11’s market dominance to emerging specialized platforms like My11Circle, the industry has transformed how Indians experience their favorite sport.
Despite regulatory challenges like increased GST rates, the sector’s trajectory points upward, fueled by India’s insatiable cricket passion, increasing digital adoption, and the strategic positioning of fantasy sports as games of skill rather than chance. For the foreseeable future, fantasy cricket will continue to blur the lines between spectator and participant, creating a new paradigm for sports engagement in the world’s most cricket-obsessed nation.
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Happy Investing!!!
Disclaimer: These insights are based on our observations and interpretations, which might not be complete or accurate. This newsletter is for educational purposes only and is not intended to provide any kind of investment advice. Please conduct your own research and consult your financial advisor before making any investment decisions based on the information shared in this newsletter.
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