Fantasy sports in India
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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 January 2024[update], the sector is valued at approximately ₹45,000 crore with over 180 million active users.[citation needed]
Overview
[edit]India has numerous fantasy mobile gaming 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
[edit]According to a 2022 NITI Aayog report, the industry is expected to:
- Attract ₹10,000 crore in foreign direct investment
- Reach a market value of ₹50,000 crore by 2025
- Expand to 200+ million users by 2025
Legal Framework
[edit]Supreme Court Ruling
[edit]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
[edit]Several High Courts have ruled on fantasy sports:
- Rajasthan High Court (July 2021): Affirmed fantasy sports as games of skill based on the 276th Law Commission Report.[3]
- Bombay High Court (April 2019): Recognized fantasy sports as a legitimate skill-based industry.[4]
- Kerala High Court (February 2022): Determined fantasy sports as a game of skill under section 14(A) of the Kerala Gaming Act.[5]
State-wise Regulations
[edit]As of January 2024[update], states fall into three categories:
States Permitting Fantasy Sports
- Maharashtra
- Karnataka
- Rajasthan
- Punjab
- Haryana
- West Bengal
- Uttar Pradesh
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 Framework
[edit]Recent Changes
[edit]As of October 2023[update], key tax reforms include:
- GST Rate: 28% on full contest entry amount
- TDS Requirements:
- 30% on winnings above ₹10,000 - Net winnings calculated monthly
- Platform Taxes:
- Corporate tax on platform revenue - State-specific gaming taxes where applicable
Impact of Tax Changes
[edit]The recent tax changes have led to:
- Industry revenue reduction of 20-25%
- Decreased user participation
- Platform operational adjustments
- Market consolidation trends
Major Platforms
[edit]Market Leaders
[edit]| Platform | User Base (2023) | Key Features |
|---|---|---|
| Dream11 | 130+ million | Cricket, Football, NBA |
| MPL | 90+ million | Multi-game platform |
| My11Circle | 50+ million | Cricket focused |
| Gamezy | 30+ million | Multiple sports |
| Fantasy Akhada | 20+ million | Cricket, Football |
Market Share Distribution
[edit]- Dream11: ~55% market share
- MPL: ~15% market share
- Others: ~30% combined
Current Challenges
[edit]Legal Issues
[edit]- State-wise regulatory compliance
- GST implementation disputes
- Age verification mechanisms
- Consumer protection measures
- Payment gateway restrictions
Ongoing Cases
[edit]- Tamil Nadu's appeal against fantasy sports
- GST classification disputes
- State jurisdiction challenges
- Consumer protection petitions
Advertising Guidelines
[edit]In November 2020, Information and broadcasting ministry of India's Advertising Standards Council of India (ASCI) created guidelines for 'fantasy gaming apps' doing business in India, such as:[6] Fantasy Apps do not permit persons under 18 to play Every fantasy gaming app must showcase a disclaimer occupying 20% of the ad's space Ads should not promote online gaming as an income opportunity No advertisements 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
[edit]User Experiences
[edit]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]
Future Outlook
[edit]Regulatory Trends
[edit]- Central regulation framework development
- Unified gaming laws consideration
- Enhanced consumer protection measures
- Standardized operational guidelines
Industry Growth
[edit]- Expected market size: ₹50,000 crore by 2025
- User base projection: 200+ million by 2025
- Technology integration trends
- International market expansion
See also
[edit]- Video games in India
- Online gaming in India
- Gaming laws in India
- Sports betting
- Indian Premier League
- E-sports in India
References
[edit]
- ^ "Dream11 is new IPL 2020 title sponsor with winning bid of Rs 222 crore". www.timesofindia.com. Archived from the original on 2022-08-21. Retrieved 2024-04-22.
- ^ "Supreme Court upholds Dream11 fantasy sports format as game of skill". The Economic Times. Retrieved 2022-10-20.
- ^ "Rajasthan High Court dismisses Plea against Online Fantasy Games". 2021-07-29. Retrieved 2022-10-21.
- ^ "Bombay HC rules fantasy sports not gambling". Mint. Retrieved 2024-01-15.
- ^ "Kerala HC Rules Fantasy Sports as Game of Skill". Indian Express. Retrieved 2024-01-15.
- ^ Sandhu, Veenu; Munjal, Dhruv (2020-11-24). "Ctrl-Alt-Del: Advertising council to misleading online gaming ads". www.business-standard.com. Retrieved 2023-04-04.
- ^ Web desk, Outlook (14 May 2019). "Dream11: 'Skill? Rubbish. It's Sophisticated Gambling', Says A Loser". Retrieved 4 April 2023.