Even as this year the Indian Premier League (IPL) posted about a 20% decline in ad revenue, it seems that online gaming is one sector which has benefited by investing its money in the T20 tourney. “Advertisements have been vital for fantasy sports organisations in the IPL 2023. These organisations have understood the value of promoting during well-known sporting events. The commercials hyped fantasy sports platforms with raised visibility, drawing new users and increase in revenue numbers due to IPL’s widespread fanbase. There are ample opportunities for efficient advertising which has helped such platforms witness growth,” Rohit Bansal, founder, Super4, a fantasy sports platform, told BrandWagon Online.
Fantasy sports platforms witnessed an 11% increase in cash users in IPL 2023 in comparison to IPL 2022, while an 18% growth was witnessed from IPL 2019. The growth was driven by an influx of new users who contributed to 35% of cash users in IPL 2023, according to the recent report by market research firm, RedSeer. Interestingly, fantasy sports as a category was one of the top spenders during this year’s IPL. Fantasy sports platforms witnessed revenue of Rs 2,800 crore, this IPL season. There has been a 30% increase in revenue in IPL 2023 when compared with IPL 2019 and a 24% increase when compared with the previous year’s IPL season. According to industry experts, it is the huge reach and the buzz of the IPL, which makes it an important property for online gaming companies to advertisers. “There is a significant level of engagement within the age bracket of 24-42 years old, which consists of individuals with both disposable income and a solid understanding of sports, making them well-suited for fantasy gaming,” Sunil Yadav, CEO, PlayerzPot, said. The report further suggested that the top three platforms captured approximately 96% of the market share during this year’s IPL.
To be sure, for online gaming companies while IPL accounts for the majority of the revenue, other sporting events account for 13% of the revenue.“With the growing acceptance of fantasy gaming, we expect the segment to move beyond cricket as the audience becomes mature and shifts focus to other interesting sports. The fantasy category is rapidly expanding and becoming prevalent in all sports, be it Wimbledon or Pro Kabbadi League,” Saurabh Chopra, co-founder and CEO, BalleBaazi.
The Indian fantasy sports industry is set to grow at a 33% compound annual growth rate over the next five years, taking the combined revenue to over Rs 25,300 crore from Rs 6,800 crore in FY22, according to a report by FIFS-Deloitte.