Fantasy sports in India
Fantasy sports came to India in the later half of the 2010s. The Federation of Indian Fantasy Sports (FIFS) serves as the primary self-regulatory industry body. As of December 2023, the sector is valued at approximately ₹45,000 crore (US$5 billion) with over 180 million active users.
Overview
India has numerous fantasy gaming mobile applications that allow users to create virtual teams for various sports. The Google Play Store does not allow these apps on their platform for download, requiring users to download them directly from their websites. These platforms attract users through sports league sponsorships,[1] celebrity endorsements, and advertising campaigns.
Market size
According to a 2022 NITI Aayog report, the industry is expected to attract ₹10,000 crore (₹100 billion) in foreign direct investment, and reach a market value of ₹50,000 crore (₹500 billion) and expand to 200 million users or more by 2025.
Legality
Supreme Court ruling
On 8 August 2021, the Supreme Court of India officially declared fantasy sports legal, classifying them as games of skill rather than gambling.[2]
High court judgments
Several high courts have ruled on fantasy sports. The Rajasthan High Court in July 2021 affirmed fantasy sports as games of skill based on the 276th Law Commission Report.[3] In April 2019 the Bombay High Court recognized fantasy sports as a legitimate skill-based industry.[4] The Kerala High Court determined fantasy sports as games of skill under section 14(A) of the Kerala Gaming Act in February 2022.[5]
State-level regulations
As of January 2024, states fall into three categories:
States permitting fantasy sports
States with bans
- Telangana (complete ban since 2017)
- Andhra Pradesh (banned under Gaming Act)
- Odisha (under Gaming Act restrictions)
- Assam (under Gambling and Betting Act)
- Nagaland (requires special license)
- Sikkim (only with state license)
States with pending regulations
- Tamil Nadu (new policy under consideration)
- Kerala (reviewing regulations)
- Gujarat (draft policy in progress)
Taxation
Changes
As of October 2023, key tax reforms related to fantasy sports include:
- A goods and services tax (GST) rate of 28% on full contest entry amounts
- Tax deduction at source requirements of 30% on winnings above ₹10,000, with net winnings calculated monthly
- Platform taxes, with a corporate tax on platform revenue, and state-specific gaming taxes where applicable
Impact
Tax changes have led to decreased user participation and a reduction of 20–25% in industry revenue. This has in turn generated market consolidation trends and platform operational adjustments.
Major platforms
Market leaders
| Platform | User base (2023) | Key features |
|---|---|---|
| Dream11 | 130+ million | Cricket, football, NBA |
| Mobile Premier League (MPL) | 99+ million | Multi-game platform |
| My11Circle | 50+ million | Cricket-focused |
| Gamezy | 30+ million | Multiple sports |
| Vision11 | 20+ million | Cricket, football |
Market share
Dream11 has an approximate 55% market share, MPL a ~15% share, and other companies share the remaining ~30% of the market.
Challenges
Legal issues
- State-level regulatory compliance
- GST implementation disputes
- Age verification mechanisms
- Consumer protection measures
- Payment gateway restrictions
Court cases
- Tamil Nadu's appeal against fantasy sports
- GST classification disputes
- State jurisdiction challenges
- Consumer protection petitions
Advertising guidelines
In November 2020, the Information and Broadcasting Ministry's Advertising Standards Council of India (ASCI) created guidelines for fantasy gaming apps doing business in India, such as:[6]
- Fantasy apps must not permit persons under 18 to play,
- Every fantasy gaming app ad must showcase a disclaimer occupying 20% of the ad's space,
- Ads should not promote online gaming as an income opportunity,
- No ads should suggest that players are more successful than non-players.
The disclaimer must state "This game involves an element of financial risk and may be addictive. Please play responsibly and at your own risk."
Criticism
User experiences
In 2019, a person claimed in an article published by Outlook that he lost ₹50,000 in just two games on Dream11, arguing that outcomes were based on chance rather than skill.[7]
See also
References
- ^ "Dream11 is new IPL 2020 title sponsor with winning bid of Rs 222 crore". www.timesofindia.com. Archived from the original on 21 August 2022. Retrieved 22 April 2024.
- ^ "Supreme Court upholds Dream11 fantasy sports format as game of skill". The Economic Times. Retrieved 20 October 2022.
- ^ a b "Rajasthan High Court dismisses Plea against Online Fantasy Games". Law Insider. 29 July 2021. Retrieved 21 October 2022.
- ^ "Bombay HC rules fantasy sports not gambling". Mint. Retrieved 15 January 2024.
- ^ "Kerala HC Rules Fantasy Sports as Game of Skill". Indian Express. Retrieved 15 January 2024.
{{cite web}}: CS1 maint: url-status (link) - ^ Sandhu, Veenu; Munjal, Dhruv (24 November 2020). "Ctrl-Alt-Del: Advertising council to misleading online gaming ads". Business Standard. Retrieved 4 April 2023.
- ^ "Dream11: 'Skill? Rubbish. It's Sophisticated Gambling', Says A Loser". Outlook. 14 May 2019. Archived from the original on 5 April 2023. Retrieved 4 April 2023.