From Recognition To Regulation: How India's Fantasy Esports Sector Will Perform In 2023

Indian fantasy esports industry has a user base of 13 crores.

The government of India has officially recognised Esports as a multi-sport event. ( Image Source :Getty )

Growing by leaps and bounds in the past decade, fantasy esports have taken over the sporting world, establishing its presence as an indispensable element of almost every major sport played across the globe. According to the ‘Global Fantasy Market Sports Market Size, Statistics, Trend Analysis and Forecast Report 2022-2032’, the global fantasy sports market size was valued at $21.46 billion in 2021 and is expected to touch $92.61 billion by 2032.

As per the same report, India is emerging as the largest market for online fantasy sports among all the countries. With a user base of 13 crores, the Indian fantasy sports industry is expected to grow at a compound annual growth ratio (CAGR) of 32 percent and reach Rs 1,65,000 crore in 2025 from Rs 34,600 crore in 2021. The country’s massive population of tech-savvy millennials, high-speed internet penetration, cheaper smartphones, and data availability are the driving forces of this burgeoning industry which have propelled it to unparalleled heights.

This breathtaking growth of fantasy sports in the country is not limited to traditional sports as fantasy Esports has emerged as a key contributor to the industry’s flourishment in recent years. Like fantasy sports, fantasy Esports present gaming aficionados with the opportunity to put their knowledge of the industry to use and avail monetary benefits by creating their own unique teams across numerous high-profile tournaments of all major Esports titles.

Participating in these contests enhances community engagement by bringing Esports fans from all over the world together, gives users a better understanding of the industry through in-depth data, and provides enthralling rewards as well as an additional revenue stream to users.

Amongst other aspects, the ever-increasing popularity of Esports has acted as the catalyst that has fuelled the rise of fantasy Esports in the country. As per the ‘2022 India Games Market report’ by Niko Partners, India is home to an estimated 396.4 million gamers that are predicted to grow to 630 million gamers by 2026. These growing numbers of gaming and Esports enthusiasts in India and their engagement with fantasy Esports have been instrumental in the upliftment of the sector.

If the meteoric growth trajectory of fantasy Esports since the pandemic is anything to go by, the industry is in for a massive upsurge in acclaim and revenue in 2023. In addition to the boom of the Esports industry, several other factors are expected to contribute to the development of fantasy Esports this year.

Govt. recognition of Esports as a multi-sport event

The government of India officially recognising Esports as a multi-sport event is going to give fantasy Esports more legitimacy and credibility among the general population of the country. Government recognition will be crucial in increasing awareness about the perks of the industry, thereby proliferating the number of fantasy Esports users.

Moreover, the Ministry of Electronics and Information Technology (MeitY) and the Animation, Visual Effects, Gaming and Comic (AVCG) taskforce set up by the government will bring about immense improvements in Esports infrastructure and education which will also benefit the fantasy Esports sector. Upgrades in the Esports industry will present fantasy Esports with more avenues to spread out and strengthen their presence within the community to create an ecosystem where both segments can prosper in harmony.

Regulation

Following official recognition from the government, fantasy Esports could be subject to having a better set of regulations in place. Regulation will not only promote fairness in contests by protecting users from misconduct and preventing cheating but will also ensure that the outcome is decided on a user’s skill, knowledge, and understanding of the industry rather than luck.

A clear and fair operating environment will attract more people as well as investors, encouraging participation and growth of the sector. Additionally, operating within the legal framework will also guarantee the longevity of the industry as it will build trust and confidence within the community.

Increase in brand sponsorship

As fantasy Esports is gaining traction, it is going to catch the eye of brands that are looking to leverage the endless potential of this industry. While we have seen a huge chunk of non-endemic brands and big corporates step foot into the gaming sector through sponsoring tournaments, collaborating with gaming content creators, and partnering with Esports organizations, the same can be expected for fantasy Esports this year.

Fantasy Esports offers brands the unique opportunity to create exclusive content pieces through team sponsorships and sponsored tournaments for reaching out and engaging with their millennial, digitally savvy base of users. Not only is this demographic the target group of every brand which is difficult to connect through other channels, but it is also a very effective avenue that guarantees a higher return on investment.

Rise in Fantasy Esports tournaments

The Indian Esports industry has witnessed its fair share of ups and downs since the covid-19 pandemic. The launch of PUBG Mobile, Freefire, and BGMI, their dominance in the country’s gaming markets followed by their bans disrupted the Esports industry’s tournaments ecosystem which witnessed a spike while the titles were at their peak and then a fall after its disappearance.

However, the industry’s rapid adoption of the multi-roster approach kept the sector going at full pace and allowed other gaming titles to blossom. Now with the mobile-focused gaming country turning its attention to PC titles such as Valorant, CS:GO and Multiple Online Battle Arena (MOBA) games such as Pokemon Unite, and DOTA 2, we have plenty of Esports tournaments in store this year which is a promising prospect for fantasy Esports platforms as it will bolster its engagement and participation.

All in all, fantasy Esports in India have an extremely promising future in the upcoming years and the industry will be expanding its horizons to emerge as a mainstream form of entertainment in the country.

(The author is the co-founder and CEO of fantasy esports platform, FanClash)

Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt Ltd. Fantasy sports game may be habit-forming or financially risky. Play responsibly. The information contained herein is merely based on parameters including but not limited to players’ past performance & records, players’ fitness & availability, ground conditions, weather conditions, etc. An individual intending to participate in any such fantasy sports game on any platform shall have to use his/her own skill, wisdom & judgement while creating a fantasy team. Accordingly, reader discretion is advised.