Online and Fantasy Gaming to grow at 30% CAGR till 2027
In recent years, the online gaming industry in India has witnessed unprecedented growth, with this trend showing no signs of slowing down. According to a report by Economic Times, India’s fantasy sports industry is projected to reach 50 crore (500 million) users by FY27, with an estimated Compound Annual Growth Rate (CAGR) of 30%. This remarkable expansion can be attributed to several factors, including the popularity of online gaming platforms and the emergence of fantasy sports. In this blog, we’ll delve into the key drivers behind this growth and discuss topics such as the impact of GST on online gaming and the rise of online rummy.
The Fantasy Games Phenomenon
Fantasy sports have taken the Indian gaming landscape by storm. These platforms allow users to create their virtual teams consisting of real players from various sports, such as cricket, football, and basketball. Users then earn points based on the real-life performance of these players. The thrill of competing against friends and fellow enthusiasts, combined with the potential to win cash prizes, has made fantasy sports immensely popular in India.
One of the reasons behind the success of fantasy sports is its accessibility. Users can participate in these games through mobile apps or websites, making it easy for people of all ages to engage with this form of entertainment. Moreover, the increasing integration of fantasy sports with live sporting events has added to its allure.
- Accessible Awesomeness: Thanks to high-speed internet and affordable smartphones, fantasy games are now accessible to everyone, from the cricket-crazed to the football fanatics.
- Sporting Extravaganza: It can be said that India’s love for cricket is as deep as the Mariana Trench. Add other leagues like the IPL and ISL, and you’ve got yourself a year-round party of fantasy games opportunities.
- Engagement Overload: Fantasy games aren’t just games; they’re engaging experiences that turn passive spectators into active participants. No more yelling at the TV; now you’re calling the shots.
- Prizes and Rewards: Many fantasy game platforms offer lucrative prizes and rewards, including cash prizes, merchandise, and exclusive experiences, further incentivizing participation.
- Advertising and Sponsorships: The popularity of fantasy games has attracted significant advertising and sponsorship deals from both domestic and international brands, contributing to the industry’s growth.
GST on Online Gaming
The implementation of the Goods and Services Tax (GST) on online gaming has been a topic of discussion in recent years. GST is a consumption-based tax levied on the supply of goods and services in India. Online gaming platforms are not exempt from this tax, and the rates can vary depending on the type of game and the platform’s revenue.
The introduction of GST has led to some complexities in the industry, with different interpretations of the tax treatment for online gaming services. For online gaming platforms like Rummy, tax was being deducted on the Gross Game Revenue (GGR). The new GST law will change that, now the deduction will be on ‘Add Cash’ – that is when a user is depositing money on the platform before playing a game.
Online Rummy: A Dominant Player
Online rummy is another segment within the online gaming industry that has witnessed substantial growth. Rummy, a traditional card game, has found a new digital avatar, attracting players from all demographics. The convenience of playing rummy online, along with the opportunity to win real cash, has made it a popular choice for card game enthusiasts.
Several online rummy platforms have emerged, offering various formats and tournaments to cater to different skill levels. These platforms often include interactive features, tutorials, and promotions to engage players and enhance their gaming experience.
The Broader Gaming Universe
While fantasy games have taken the limelight, the broader online gaming ecosystem has also experienced substantial growth. Online multiplayer games, esports, and mobile gaming apps have all contributed to the industry’s success. Here are some key reasons behind this growth:
- Social Connectivity: Online gaming offers an avenue for social interaction and connectivity, especially important during times of physical distancing. Players can team up with friends or make new ones from around the world.
- Diverse Game Offerings: The industry offers a diverse range of gaming experiences, from action-packed shooter games to strategy-based simulations, catering to a wide spectrum of gamers.
- Competitive Gaming: Esports has emerged as a legitimate competitive field, with professional players, teams, and tournaments. This competitive aspect has drawn in players and spectators alike, with esports tournaments garnering millions of viewers.
- Mobile Gaming: The rise of mobile gaming has made gaming more accessible than ever. With powerful smartphones and a plethora of gaming apps, anyone can be a gamer on the go.
- Monetization Strategies: Gaming companies have developed effective monetization strategies, such as in-game purchases, subscriptions, and ads, creating sustainable revenue streams
As we look ahead to 2027, the future of online and fantasy gaming in India seems incredibly promising. The industry’s ability to evolve, innovate, and cater to the ever-changing preferences of gamers will be crucial in sustaining this growth. Furthermore, the role of regulatory frameworks and responsible gaming practices will be pivotal in ensuring a safe and enjoyable gaming experience for all.
Therefore, the online rummy and fantasy gaming industry in India is on an impressive trajectory, with a projected 30% CAGR until 2027. The confluence of factors like accessibility, engagement, sporting events, and technological advancements has fueled this growth. Whether you’re a die-hard cricket fan looking to create your fantasy XI or a casual gamer enjoying quick mobile games, the Indian gaming landscape offers something for everyone. So, gear up for an exciting journey into the world of online and fantasy gaming, as the adventure has only just begun.