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Tag: Federation of Indian Fantasy Sports

  • India’s sports tech market to hit Rs 49,500 crore by 2029, fantasy sports growth slows

    India’s sports tech market to hit Rs 49,500 crore by 2029, fantasy sports growth slows

    MUMBAI: India’s sports technology market, currently valued at Rs 26,700 crore, is projected to grow at 13 per cent annually to reach Rs 49,500 crore by 2029, according to a new report by the Federation of Indian Fantasy Sports (FIFS) and Deloitte.

    The report, Beyond the Field: India’s Sports Tech Revolution, unveiled in New Delhi yesterday by minister of state for youth affairs and sports Raksha Khadse, reveals that fantasy sports, the largest segment, faces headwinds due to recent GST changes.

    “The fantasy sports industry has seen revenues touch Rs 9,100 crore in FY24 but is expected to decline by 10 per cent in FY25,” said FIFS director general Joy Bhattacharjya. 

    The sector’s growth forecast has been revised down to seven per cent CAGR through FY29, from an earlier projection of 30 per cent.

    “Technology is creating immersive fan experiences and opening newer business avenues,” said Deloitte India partner Prashanth Rao. However, he noted that investments in fantasy sports dropped 90 per cent in 2023, with no new investments in 2024, primarily due to GST impacts and retrospective taxation concerns.

    The report identifies three key subsectors: fan engagement, sports data and analytics, and foundational technologies. Despite current challenges, the industry’s GST contribution is expected to more than double to Rs 3,520 crore in FY24 from Rs 1,480 crore in FY23..

    The report highlights significant consumer adoption, with 89 per cent of Indian sports fans reporting that emerging technologies have enhanced their viewing experience. Between 2018 and 2023, the sector attracted cumulative investments of Rs 27,500 crore, with fantasy sports securing Rs 10,800 crore of this funding.

    India’s current one per cent share of the global sports technology market and four per cent of the APAC region suggests substantial growth potential. However, industry leaders elaborate that realising this potential requires a supportive regulatory framework, stable tax policies, and industry-wide standards for responsible gaming.
    Minister Khadse emphasised the government’s commitment to the sector, stating, “The integration of technology with sports is crucial as we enter the era of AI. Sports technology will be particularly important in analysing and developing our athletes for the future.”

    The sector is expected to create 17,500 direct and indirect new jobs by FY27, marking its growing importance in India’s digital economy.

  • Rajeev Chandrasekhar to deliver keynote at India’s largest online gaming convention on 5 Dec

    Rajeev Chandrasekhar to deliver keynote at India’s largest online gaming convention on 5 Dec

    Mumbai: The Internet and Mobile Association of India (IAMAI), in collaboration with the Federation of Indian Fantasy Sports (FIFS) and the E-Gaming Federation (EGF) is all set to organise the first edition of the nation’s largest gaming conference, the Indian Gaming Convention (IGC), on December 5, 2023, at the Taj Palace, New Delhi. Shri Rajeev Chandrasekhar, Minister of State for Skill Development and Entrepreneurship, and Electronics and Information Technology, Government of India, will deliver the keynote address at the valedictory session.

    Leading policymakers, regulators, gaming industry captains, marketers, game developers and service providers will converge on one platform to address the IGC, which is expected to draw more than 700 delegates, including senior professionals of the online gaming ecosystem of the country.

    Among stalwarts of the gaming landscape who will share their insights at the IGC will be Dr. Trivikraman Thampy, Co-founder, Games24x7; Dilsher Singh Malhi, Founder & CEO, Zupee; Salone Sehgal, General Partner, Lumikai; Ishita Grover, Director (Marketing), Oneplus; Deepak Jacob, General Counsel, DreamSports, and Anuraag Saxena, CEO, EGF.

    International speakers, addressing the IGC will include Jean Major, a former Canadian regulator currently on the Board of the Ontario Lottery and Gaming Commission, and Sarah Ramansaukas, a player safety expert from the UK, who co-founded The Game Safety Institute.

    Elaborating on the context of the convention IAMAI chairman and Dream Sports CEO and co-founder Harsh Jain said, “2023 has been a defining year for India’s Online Gaming industry, marked by multiple positive developments like MeitY’s appointment as our nodal ministry, notification of the IT regulations and clarity on taxation. These developments will facilitate the industry’s sustainable and responsible growth over the long term. I look forward to insightful discussions at IGC, where the focus will be on exploring collaborative strategies between industry, Government, and the ecosystem to enable a safe, trusted, and accountable Indian online gaming industry that can emerge as the global hub for gaming.”

    IAMAI Online Gaming Committee chairman and Games24X7 Co-founder & Co-CEO Bhavin Pandya said, “The Indian online gaming industry is going through a tectonic shift, with 2023 being a landmark year in its evolution. Key tax and policy frameworks have laid a robust foundation for the online gaming sector, but there is a long way to go from here. This underscores the need for platforms like the Indian Gaming Convention (IGC) where open and honest dialogues between industry and government, stakeholders and partners, and visionaries and innovators are earnestly facilitated. Such platforms are crucial for our industry to seize opportunities and face challenges collectively. I’m confident that the IGC will evolve into a central platform which will play an instrumental role in shaping the future of the online gaming industry in India.”

    More than 35 of subject-experts will deliberate upon the opportunities and challenges before India’s online gaming industry 360 degrees in 10 of sessions, including keynotes, fireside chats, and panel discussions. Some of the key sessions of the IGC will be on “Future of Gaming: Fuelling Innovation to Make India a Global Gaming Hub”, “Empowering the Digital Landscape: Online Gaming’s Role in Fueling Digital India”, ”Building a Robust National Regulatory Framework for Online Gaming”, “Investor Insights: How Can the Industry Build Through Regulatory Shifts”, “Gaming’s Role in Promoting Culture, Education, and sports”, and “Voices of the game: Online gaming in India, a user-speaks experience”.

    Value Leaf is the Platinum Partner of the IGC, and it is being supported by the Government of Telangana.

  • FIFS welcomes MIB’s advisories against illegal offshore betting platforms ads

    FIFS welcomes MIB’s advisories against illegal offshore betting platforms ads

    Mumbai: The Federation of Indian Fantasy Sports (FIFS), the industry’s self-regulatory body, has welcomed the ministry of information and broadcasting (MIB) decision not to allow private television channels, digital news publishers, and OTT platforms to broadcast/show advertisements for online betting sites and surrogate ads. The federation lauds the ministry for the move that reiterates FIFS’ stand against this menace. FIFS said that it has previously emphasised the need for identification and prohibition of offshore business activities to ensure consumer interest safeguards.

    FIFS DG Joy Bhattacharjya said, “We thank the ministry of information and broadcasting for this important step. As FIFS, we have been creating awareness about the need for demarcation between the legitimate and illegitimate players in the online gaming ecosystem to ensure unwarranted elements like offshore betting and gambling don’t see a rise and adversely impact consumer interests. This move from the ministry will ensure that Indian citizens are educated about the risks on these platforms and do not get lured or trapped by the same. We are hopeful that this initiative will lead to further stringent action on these players by other arms of the government as well.”

    As a big and positive step towards consumer interest protection, on 3 October 2022, MIB issued an advisory to private television channels, digital news publishers, and OTT platforms to refrain from showing advertisements for online betting sites and surrogate advertisements for such sites.

    In the advisories issued by the government, a clear stand has been taken by MIB against direct and surrogate advertisements of offshore betting platforms, saying that it may also invite penal action for the broadcasters. The advisories also stated that since betting and gambling are illegal in most parts of the country, advertisements for these betting platforms as well as their surrogates are also illegal and should not be shown to Indian consumers.

    The ministry, in its advisory, clearly highlighted that such offshore betting websites use news as a surrogate product to advertise their betting platforms, especially in the digital medium. The advisories mentioned that in these cases, there is a striking resemblance between the logo of the news platform and the betting website. The advisories also clarified that since betting and gambling are illegal in most parts of India, so are their advertisements, direct or surrogate. MIB mentioned the Consumer Protection Act 2019, Cable TV Network Regulation Act 1995 and the IT Rules 2021 to issue the advisories.

    FIFS added that it takes consumer interest protection very seriously and recently revised and strengthened its charter in order to promote innovation with responsible growth for the fantasy sports industry. The new charter emphasises the role of the Fantasy Sports Regulatory Authority (FSRA), an independent self-regulatory body committed to promoting standardised best practises in fantasy sports.

  • FIFS onboards Joy Bhattacharjya as director-general

    FIFS onboards Joy Bhattacharjya as director-general

    Mumbai: Self-regulatory industry body for fantasy sports, the Federation of Indian Fantasy Sports (FIFS) on Friday announced the appointment of Joy Bhattacharjya as its director-general. In this role,  Bhattacharjya will oversee the functioning of the body and work with policymakers and industry stakeholders alike.  

    The organisation said that he is a well-known figure in the sports & media entertainment industry of the country and can be rightly hailed as the ‘Godfather of Fantasy Sports in India.’ From designing India’s first ever fantasy sports game – the Super Selector for ESPN Star Sports, to coming onboard FIFS – it is a perfect synergy, said FIFS.   

    He also runs the Prime Volleyball League and is a cricket analyst with Cricbuzz. As Fifa U-17 World Cup 2017 project director he delivered the most attended and successful junior tournament in the history of FIFA.  

    In his earlier roles he has held the position of Kolkata Knight Riders team director and History & National Geographic as head of programming – South Asia. He was also the first Indian head of production at ESPN Star Sports. He is an avid writer, having written for the likes of TOI, India Today, BBC, The Telegraph and the Hindustan Times, has a regular quiz column with the Hindu Business Line and also writes on sport for the Economic Times.  

    FIFS chairman Bimal Julka said, “Happy to have Joy Bhattacharjya join FIFS as the director-general. FIFS will benefit from his sports expertise and knowledge of fantasy sports.”  

    Bhattacharjya added, “I am elated to be a part of the next stage of development of Fantasy Sports in the country. It’s a homecoming for me in a way, from launching the Super Selector in 2000, to now leading FIFS – India’s only SRO for Fantasy Sports. I look forward to working with the FIFS members and the stakeholders at large and help FIFS identify the landscape and potential for India to be the global leader in the fantasy sports sector.”

  • Industry bodies raises concern over revised GST rates in online gaming

    Industry bodies raises concern over revised GST rates in online gaming

    Mumbai: The three largest online skill gaming associations in the country, E-Gaming Federation (EGF), All India Gaming Federation (AIGF) and Federation of Indian Fantasy Sports (FIFS), expressed concern at the recent media reports, which suggest that the GST rate on online skill games may be increased from existing 18 per cent to 28 per cent.

    In an official statement released, the three industry bodies said that what is more worrying is some media reports suggesting that the tax may be levied on total pool (prize money pooled plus the platform commission) and not on gross gaming revenue (GGR). The latter, if implemented, they said, will mean the demise of the online skill gaming industry in India.

    EGF CEO Sameer Barde said, “Such a step is not only in dissonance with international best practices but is also violative of the principles of GST. Essentially, the online skill gaming operators are platforms, which bring players from various geographies together. The money pooled is eventually distributed to the winning player. The platform charges a predetermined fee, known as GGR, and pays tax on that. If you were to charge an increased tax rate on the entire quantum (pooled money plus commission), it is not only principally incorrect but will also annihilate this sunrise sector.”

    Highlighting that the sector has immense economic benefits, the industry associations appealed to the GST Council to understand the salience of games of skill and take a decision considering international taxation best practices.

    “Global studies have shown that incidence of taxation, on prize money instead of gaming revenue, leads to reduced tax collections for the exchequer and ends up giving a fillip to the black-market operators at the expense of legitimate tax paying players,” said FIFS CEO Anwar Shirpurwala. He further added that any regulations or taxation related to skill gaming should not be treated at par with games of chance, as these are very divergent activities both in terms of law and in practice.

    With a combined membership of around 100 operators, between them, EGF, AIGF and FIFS, represent more than 90 per cent of the online skill gaming market in India. In the last few years, the online skill gaming sector has emerged as a growth engine for the Indian economy with direct benefits to a lot of sectors such as fintech, sports, animation & graphics, semiconductor, edtech and software development. The sector has also witnessed investments from marquee global venture capital and private equity firms. In the last six years, the online skill gaming sector has received foreign investment of over two billion dollars. The sector already employs around 50,000 people.

    AIGF CEO Roland Landers said, “At one level the sector is very upbeat at the prospect of contributing towards growth of the Indian economy. We are very encouraged by the encouragement shown by the government, through formation of AVGC task force, constitution of inter-ministerial task force and the recent initiatives by MeITY to engage with the industry. But all this will amount to nothing, if it is not supported by a progressive taxation regime. An increased tax rate, and then levying the tax on the entire contest entry amount (instead of GGR), will be catastrophic for the industry, even nipping its potential in the bud.”

  • Time to bring progressive law, not ban online games: FICCI Gaming Committee

    Time to bring progressive law, not ban online games: FICCI Gaming Committee

    Mumbai: The FICCI Gaming Committee (FGC) has spoken out against statements made by the chief minister of Tamil Nadu to bring an end to online gaming in the state. The FGC has urged the state government to adopt an enabling gaming policy protecting players while ensuring a secure, responsible gaming environment.

    “The FICCI Gaming Committee is committed to supporting the government in establishing a safe gaming environment. However, we would like to reiterate that blanket bans do not ensure player protection but instead, benefits unscrupulous fly-by-night operators and encourages illicit and underground gaming activities leading to detrimental impacts on the very populations the government seeks to protect,” the industry body said in a statement.

    The committee asserted that the need of the hour is a stable regulatory mechanism capturing clear requirements that protect consumers and operations of lawful operators. It has suggested that the government consider regulating this new form of entertainment thereby addressing several issues such as protecting players by providing access to responsible entertainment choices.

    In February 2021 the state government amended the Tamil Nadu Gaming Act, 1930, banning online games, subsequently the Madras high court struck down the law in August 2021 on the basis of multiple Supreme Court decisions taken in the past. Reiterating the protection afforded under the constitution to games of skill.  

    “While we appreciate the intent of the government to protect the users, a wide-ranging ban seems excessive and disproportionate in meeting its objectives,” said FICCI director general Arun Chawla. “It shall also severely impact these new technology-driven legitimate businesses that are generating much-needed jobs and revenues for the state.”

    “Around 420 million players across the country enjoy online gaming as a form of entertainment. To ensure that these players’ experiences are safe, we request the government consider regulating this industry, which would allow only legitimate, legal operators to operate while adhering to strict protocols,” said E-Gaming Federation CEO and FGC convener Sameer Barde. “At EGF, we have set up a self-regulatory framework in the form of a code of conduct ensuring a safe, transparent, and responsible environment for players by our certified members. We look forward to collaborating with the government and offering our expertise to help the state establish a well-regulated and sustainable industry.”

    “The growth of 27 per cent CAGR generated by the online skill gaming industry in 2020 has made it the fastest-growing segment within the Indian M&E sector,” said All India Gaming Federation CEO and FGC convenor Roland Landers. “The sunrise online skill gaming industry is responsible for facilitating 400+ Start-ups in this sector and attracted 400+ million gamers – young Indians providing them viable alternate job opportunities in Esports and other gaming businesses.”

    “All AIGF stakeholders are governed by the skill games charter that ensures global best practices across responsible gaming and gamer protection. It is in the best interests of all concerned that the State Govt works with the skill gaming industry to build a robust regulatory framework to ensure all stakeholders across the ecosystem benefit economically and socially notably taxation revenues gaming and allowance for Indian registered gaming companies to operate in the state,” he added.

    “India has emerged as the largest Fantasy Sports market in the world with over 13 crore Indian sports fans using fantasy sports,” said Federation of Indian Fantasy Sports CEO and FICCI Gaming Committee convener Anwar Shirpurwala. “Fantasy Sports is contributing significantly to the growth of the sports ecosystem in India and also helping Tamil Nadu’s sports fans meaningfully engage with their favourite sports. Our government’s premier think-tank NITI Aayog has recognised fantasy sports as a sunrise sector. Renowned academic institutions such as IIM Bangalore and MIT have applied scientific methodology and concluded that participating in fantasy sports requires significant skill, even higher than the skill required by a mutual fund manager. In addition, various law commissions including the Uttar Pradesh Law Commission and the Law Commission of India have held that games of skill should be exempt from gambling laws. Various high courts including the Rajasthan high court have said that fantasy sports is online sports and entitled to protection under Article 19(1)(g) of the constitution. The view has been further endorsed by the Hon’ble Supreme Court. Considering the above, the industry looks forward to working with the government of Tamil Nadu to create a safe experience for sports fans and enable responsible growth of the industry through regulation.”