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India’s online gaming industry on rise, revenues to grow at 22% CAGR from FY18-FY23

Online gaming in India is seeing increased traction due to the growth of digital infrastructure, with fantasy sports emerging as an important segment in this space, says a new report from KPMG and Indian Federation of Sports Gaming.

“With the number of fantasy sports operators growing rapidly and the number of users on fantasy sports platforms expected to cross 100 million by 2020, this segment has the potential to spawn a whole ecosystem around it, and could help deepen user engagement with their favourite sports’,” Girish Menon, Partner and Head – Media and Entertainment, KPMG said.

According to the report, the ‘Opportunity to win money’ was seen as one of the motivators for around 30% of respondents, however, this was only the 5th most important factor for engagement.

Important to note that only 25-30% of the spends on fantasy sports platforms come from the users’ pocket. 70-75% of the spends are re-investments coming from previous winnings, cash bonus or periodical promotional offers given by these platforms to their users.

Majority of users from top 7-8 cities of the country were found to be playing less frequently than some of the smaller cities in the country. Nearly 85% of the respondents from the major cities play fantasy sports 1-3 times a week as compared to nearly 70% of respondents from smaller cities who play more than four times a week on such platforms.

The report points out that for 72% of respondents, the primary motivation for playing fantasy sports is fun and excitement. Further, 69% of respondents say that there are no overlaps between Fantasy Sports and Sports Betting and among these, 81% say that playing fantasy sports requires profound Skill and Knowledge.

John Loffhagen, President IFSG said, “With the rapidly growing digital infrastructure and emergence of new sports leagues, the Indian online sports gaming industry is witnessing a boom which shows no sign of slowing down. Exponential growth provides users with easy access to a vast variety of sports gaming apps, formats and genres. This could lead to potential confusion and misjudgement among players in choosing the right platform to engage with their favourite sport.”

Source: The Hindu